Intrinsic value of Texas Instruments - TXN

Previous Close

$116.41

  Intrinsic Value

$74.55

stock screener

  Rating & Target

sell

-36%

Previous close

$116.41

 
Intrinsic value

$74.55

 
Up/down potential

-36%

 
Rating

sell

We calculate the intrinsic value of TXN stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  2.85
  12.00
  11.30
  10.67
  10.10
  9.59
  9.13
  8.72
  8.35
  8.01
  7.71
  7.44
  7.20
  6.98
  6.78
  6.60
  6.44
  6.30
  6.17
  6.05
  5.95
  5.85
  5.77
  5.69
  5.62
  5.56
  5.50
  5.45
  5.41
  5.37
  5.33
Revenue, $m
  13,370
  14,974
  16,667
  18,445
  20,308
  22,256
  24,289
  26,407
  28,612
  30,904
  33,288
  35,765
  38,339
  41,013
  43,794
  46,685
  49,692
  52,821
  56,079
  59,472
  63,008
  66,694
  70,540
  74,553
  78,743
  83,120
  87,694
  92,475
  97,476
  102,706
  108,180
Variable operating expenses, $m
 
  9,995
  11,076
  12,211
  13,401
  14,644
  15,942
  17,294
  18,701
  20,165
  21,686
  22,831
  24,474
  26,182
  27,957
  29,802
  31,722
  33,720
  35,799
  37,965
  40,223
  42,576
  45,031
  47,593
  50,268
  53,062
  55,982
  59,034
  62,226
  65,565
  69,060
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  8,571
  9,995
  11,076
  12,211
  13,401
  14,644
  15,942
  17,294
  18,701
  20,165
  21,686
  22,831
  24,474
  26,182
  27,957
  29,802
  31,722
  33,720
  35,799
  37,965
  40,223
  42,576
  45,031
  47,593
  50,268
  53,062
  55,982
  59,034
  62,226
  65,565
  69,060
Operating income, $m
  4,799
  4,979
  5,591
  6,234
  6,908
  7,612
  8,347
  9,113
  9,911
  10,740
  11,602
  12,933
  13,864
  14,831
  15,837
  16,882
  17,970
  19,101
  20,279
  21,507
  22,785
  24,118
  25,509
  26,960
  28,476
  30,058
  31,712
  33,441
  35,250
  37,141
  39,121
EBITDA, $m
  5,754
  5,927
  6,597
  7,301
  8,039
  8,810
  9,614
  10,453
  11,325
  12,233
  13,176
  14,157
  15,176
  16,234
  17,335
  18,479
  19,670
  20,908
  22,198
  23,541
  24,940
  26,400
  27,922
  29,510
  31,169
  32,902
  34,712
  36,605
  38,584
  40,654
  42,821
Interest expense (income), $m
  0
  104
  127
  150
  175
  201
  228
  257
  286
  317
  349
  382
  417
  453
  490
  529
  569
  611
  655
  701
  748
  797
  849
  902
  958
  1,017
  1,078
  1,142
  1,209
  1,278
  1,351
Earnings before tax, $m
  4,930
  4,875
  5,464
  6,083
  6,733
  7,411
  8,119
  8,856
  9,624
  10,422
  11,252
  12,551
  13,447
  14,379
  15,347
  16,353
  17,400
  18,490
  19,624
  20,806
  22,037
  23,321
  24,660
  26,058
  27,517
  29,041
  30,634
  32,299
  34,041
  35,863
  37,769
Tax expense, $m
  1,335
  1,316
  1,475
  1,643
  1,818
  2,001
  2,192
  2,391
  2,599
  2,814
  3,038
  3,389
  3,631
  3,882
  4,144
  4,415
  4,698
  4,992
  5,299
  5,618
  5,950
  6,297
  6,658
  7,036
  7,430
  7,841
  8,271
  8,721
  9,191
  9,683
  10,198
Net income, $m
  3,595
  3,559
  3,989
  4,441
  4,915
  5,410
  5,927
  6,465
  7,026
  7,608
  8,214
  9,162
  9,816
  10,496
  11,203
  11,938
  12,702
  13,498
  14,326
  15,188
  16,087
  17,024
  18,002
  19,022
  20,088
  21,200
  22,363
  23,579
  24,850
  26,180
  27,572

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  3,490
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  16,431
  14,496
  16,134
  17,856
  19,660
  21,545
  23,513
  25,564
  27,698
  29,917
  32,224
  34,622
  37,114
  39,703
  42,395
  45,193
  48,104
  51,134
  54,287
  57,572
  60,995
  64,564
  68,287
  72,172
  76,228
  80,465
  84,893
  89,521
  94,362
  99,425
  104,724
Adjusted assets (=assets-cash), $m
  12,941
  14,496
  16,134
  17,856
  19,660
  21,545
  23,513
  25,564
  27,698
  29,917
  32,224
  34,622
  37,114
  39,703
  42,395
  45,193
  48,104
  51,134
  54,287
  57,572
  60,995
  64,564
  68,287
  72,172
  76,228
  80,465
  84,893
  89,521
  94,362
  99,425
  104,724
Revenue / Adjusted assets
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
  1.033
Average production assets, $m
  4,027
  4,507
  5,017
  5,552
  6,113
  6,699
  7,311
  7,949
  8,612
  9,302
  10,020
  10,765
  11,540
  12,345
  13,182
  14,052
  14,957
  15,899
  16,880
  17,901
  18,965
  20,075
  21,233
  22,441
  23,702
  25,019
  26,396
  27,835
  29,340
  30,915
  32,562
Working capital, $m
  5,193
  2,621
  2,917
  3,228
  3,554
  3,895
  4,251
  4,621
  5,007
  5,408
  5,825
  6,259
  6,709
  7,177
  7,664
  8,170
  8,696
  9,244
  9,814
  10,408
  11,026
  11,672
  12,345
  13,047
  13,780
  14,546
  15,346
  16,183
  17,058
  17,974
  18,932
Total debt, $m
  3,609
  3,623
  4,298
  5,008
  5,751
  6,528
  7,338
  8,183
  9,062
  9,977
  10,927
  11,915
  12,942
  14,009
  15,118
  16,271
  17,470
  18,718
  20,017
  21,371
  22,781
  24,251
  25,785
  27,386
  29,057
  30,803
  32,627
  34,534
  36,528
  38,614
  40,797
Total liabilities, $m
  5,958
  5,972
  6,647
  7,357
  8,100
  8,877
  9,687
  10,532
  11,411
  12,326
  13,276
  14,264
  15,291
  16,358
  17,467
  18,620
  19,819
  21,067
  22,366
  23,720
  25,130
  26,600
  28,134
  29,735
  31,406
  33,152
  34,976
  36,883
  38,877
  40,963
  43,146
Total equity, $m
  10,473
  8,524
  9,487
  10,499
  11,560
  12,669
  13,826
  15,031
  16,286
  17,591
  18,948
  20,358
  21,823
  23,345
  24,928
  26,574
  28,285
  30,067
  31,921
  33,852
  35,865
  37,964
  40,152
  42,437
  44,822
  47,313
  49,917
  52,638
  55,485
  58,462
  61,578
Total liabilities and equity, $m
  16,431
  14,496
  16,134
  17,856
  19,660
  21,546
  23,513
  25,563
  27,697
  29,917
  32,224
  34,622
  37,114
  39,703
  42,395
  45,194
  48,104
  51,134
  54,287
  57,572
  60,995
  64,564
  68,286
  72,172
  76,228
  80,465
  84,893
  89,521
  94,362
  99,425
  104,724
Debt-to-equity ratio
  0.345
  0.430
  0.450
  0.480
  0.500
  0.520
  0.530
  0.540
  0.560
  0.570
  0.580
  0.590
  0.590
  0.600
  0.610
  0.610
  0.620
  0.620
  0.630
  0.630
  0.640
  0.640
  0.640
  0.650
  0.650
  0.650
  0.650
  0.660
  0.660
  0.660
  0.660
Adjusted equity ratio
  0.540
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  3,595
  3,559
  3,989
  4,441
  4,915
  5,410
  5,927
  6,465
  7,026
  7,608
  8,214
  9,162
  9,816
  10,496
  11,203
  11,938
  12,702
  13,498
  14,326
  15,188
  16,087
  17,024
  18,002
  19,022
  20,088
  21,200
  22,363
  23,579
  24,850
  26,180
  27,572
Depreciation, amort., depletion, $m
  955
  948
  1,006
  1,067
  1,131
  1,197
  1,267
  1,339
  1,415
  1,493
  1,575
  1,223
  1,311
  1,403
  1,498
  1,597
  1,700
  1,807
  1,918
  2,034
  2,155
  2,281
  2,413
  2,550
  2,693
  2,843
  3,000
  3,163
  3,334
  3,513
  3,700
Funds from operations, $m
  4,668
  4,507
  4,995
  5,508
  6,046
  6,608
  7,194
  7,805
  8,440
  9,102
  9,789
  10,386
  11,128
  11,899
  12,701
  13,535
  14,402
  15,304
  16,244
  17,223
  18,242
  19,306
  20,415
  21,572
  22,781
  24,043
  25,363
  26,742
  28,184
  29,693
  31,272
Change in working capital, $m
  54
  281
  296
  311
  326
  341
  356
  371
  386
  401
  417
  433
  450
  468
  487
  506
  526
  548
  570
  594
  619
  645
  673
  702
  733
  766
  800
  837
  875
  915
  958
Cash from operations, $m
  4,614
  4,226
  4,699
  5,197
  5,719
  6,267
  6,838
  7,434
  8,055
  8,700
  9,372
  9,952
  10,677
  11,431
  12,214
  13,029
  13,876
  14,757
  15,674
  16,629
  17,624
  18,660
  19,742
  20,870
  22,048
  23,277
  24,562
  25,905
  27,309
  28,777
  30,314
Maintenance CAPEX, $m
  0
  -458
  -512
  -570
  -631
  -695
  -761
  -831
  -903
  -979
  -1,057
  -1,139
  -1,223
  -1,311
  -1,403
  -1,498
  -1,597
  -1,700
  -1,807
  -1,918
  -2,034
  -2,155
  -2,281
  -2,413
  -2,550
  -2,693
  -2,843
  -3,000
  -3,163
  -3,334
  -3,513
New CAPEX, $m
  -531
  -481
  -509
  -535
  -561
  -586
  -612
  -638
  -664
  -690
  -717
  -746
  -775
  -805
  -837
  -870
  -905
  -942
  -981
  -1,021
  -1,064
  -1,110
  -1,158
  -1,208
  -1,261
  -1,317
  -1,377
  -1,439
  -1,505
  -1,574
  -1,648
Cash from investing activities, $m
  -650
  -939
  -1,021
  -1,105
  -1,192
  -1,281
  -1,373
  -1,469
  -1,567
  -1,669
  -1,774
  -1,885
  -1,998
  -2,116
  -2,240
  -2,368
  -2,502
  -2,642
  -2,788
  -2,939
  -3,098
  -3,265
  -3,439
  -3,621
  -3,811
  -4,010
  -4,220
  -4,439
  -4,668
  -4,908
  -5,161
Free cash flow, $m
  3,964
  3,288
  3,677
  4,091
  4,528
  4,986
  5,465
  5,966
  6,488
  7,032
  7,597
  8,068
  8,679
  9,315
  9,975
  10,661
  11,374
  12,115
  12,887
  13,689
  14,525
  15,396
  16,303
  17,249
  18,236
  19,267
  20,342
  21,466
  22,641
  23,869
  25,153
Issuance/(repayment) of debt, $m
  -501
  645
  675
  709
  743
  777
  811
  845
  879
  914
  951
  988
  1,027
  1,067
  1,109
  1,153
  1,199
  1,248
  1,299
  1,353
  1,410
  1,470
  1,534
  1,601
  1,671
  1,746
  1,824
  1,907
  1,994
  2,086
  2,183
Issuance/(repurchase) of shares, $m
  -1,660
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -2,164
  645
  675
  709
  743
  777
  811
  845
  879
  914
  951
  988
  1,027
  1,067
  1,109
  1,153
  1,199
  1,248
  1,299
  1,353
  1,410
  1,470
  1,534
  1,601
  1,671
  1,746
  1,824
  1,907
  1,994
  2,086
  2,183
Total cash flow (excl. dividends), $m
  1,800
  3,933
  4,352
  4,801
  5,271
  5,763
  6,276
  6,810
  7,367
  7,946
  8,548
  9,056
  9,706
  10,381
  11,084
  11,814
  12,573
  13,363
  14,186
  15,043
  15,935
  16,866
  17,837
  18,850
  19,908
  21,012
  22,167
  23,373
  24,635
  25,955
  27,336
Retained Cash Flow (-), $m
  -527
  -910
  -963
  -1,012
  -1,061
  -1,109
  -1,157
  -1,206
  -1,255
  -1,305
  -1,357
  -1,410
  -1,465
  -1,523
  -1,583
  -1,646
  -1,712
  -1,781
  -1,854
  -1,931
  -2,013
  -2,098
  -2,189
  -2,284
  -2,385
  -2,491
  -2,603
  -2,722
  -2,846
  -2,977
  -3,116
Prev. year cash balance distribution, $m
 
  2,859
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  5,882
  3,389
  3,789
  4,210
  4,654
  5,119
  5,605
  6,112
  6,641
  7,191
  7,646
  8,241
  8,859
  9,501
  10,168
  10,861
  11,582
  12,332
  13,111
  13,923
  14,768
  15,648
  16,565
  17,522
  18,521
  19,563
  20,652
  21,789
  22,978
  24,221
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  5,640
  3,103
  3,297
  3,467
  3,607
  3,715
  3,787
  3,820
  3,815
  3,770
  3,631
  3,517
  3,368
  3,190
  2,985
  2,760
  2,520
  2,271
  2,019
  1,769
  1,527
  1,298
  1,086
  892
  720
  571
  443
  337
  251
  182
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Texas Instruments Incorporated designs, makes and sells semiconductors to electronics designers and manufacturers across the world. The Company operates through two segments: Analog and Embedded Processing. As of December 31, 2016, the Company had design, manufacturing or sales operations in more than 30 countries. The Company's Analog segment's product line includes High Volume Analog & Logic (HVAL), Power Management (Power), High Performance Analog (HPA) and Silicon Valley Analog (SVA). HVAL products support applications, such as automotive safety devices, touchscreen controllers, low-voltage motor drivers and integrated motor controllers. The Company's Embedded Processing segment's product line includes Processor, Microcontrollers and Connectivity. Processor products include digital signal processors (DSPs) and applications processors. DSPs perform mathematical computations to process digital data.

FINANCIAL RATIOS  of  Texas Instruments (TXN)

Valuation Ratios
P/E Ratio 32.3
Price to Sales 8.7
Price to Book 11.1
Price to Tangible Book
Price to Cash Flow 25.1
Price to Free Cash Flow 28.4
Growth Rates
Sales Growth Rate 2.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -3.6%
Cap. Spend. - 3 Yr. Gr. Rate 5.2%
Financial Strength
Quick Ratio 6
Current Ratio 0
LT Debt to Equity 28.4%
Total Debt to Equity 34.5%
Interest Coverage 0
Management Effectiveness
Return On Assets 22%
Ret/ On Assets - 3 Yr. Avg. 18.4%
Return On Total Capital 25.5%
Ret/ On T. Cap. - 3 Yr. Avg. 21.4%
Return On Equity 35.2%
Return On Equity - 3 Yr. Avg. 30.4%
Asset Turnover 0.8
Profitability Ratios
Gross Margin 61.6%
Gross Margin - 3 Yr. Avg. 58.9%
EBITDA Margin 44%
EBITDA Margin - 3 Yr. Avg. 41.4%
Operating Margin 35.9%
Oper. Margin - 3 Yr. Avg. 33%
Pre-Tax Margin 36.9%
Pre-Tax Margin - 3 Yr. Avg. 33%
Net Profit Margin 26.9%
Net Profit Margin - 3 Yr. Avg. 23.8%
Effective Tax Rate 27.1%
Eff/ Tax Rate - 3 Yr. Avg. 27.8%
Payout Ratio 45.8%

TXN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the TXN stock intrinsic value calculation we used $13370 million for the last fiscal year's total revenue generated by Texas Instruments. The default revenue input number comes from 2016 income statement of Texas Instruments. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our TXN stock valuation model: a) initial revenue growth rate of 12% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for TXN is calculated based on our internal credit rating of Texas Instruments, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Texas Instruments.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of TXN stock the variable cost ratio is equal to 67.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for TXN stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Texas Instruments.

Corporate tax rate of 27% is the nominal tax rate for Texas Instruments. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the TXN stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for TXN are equal to 30.1%.

Life of production assets of 8.8 years is the average useful life of capital assets used in Texas Instruments operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for TXN is equal to 17.5%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $10473 million for Texas Instruments - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 989.18 million for Texas Instruments is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Texas Instruments at the current share price and the inputted number of shares is $115.2 billion.

RELATED COMPANIES Price Int.Val. Rating
ADI Analog Devices 97.24 335.25  str.buy
MXIM Maxim Integrat 55.81 10.25  str.sell
ON ON Semiconduct 24.74 68.44  str.buy
NXPI NXP Semiconduc 120.00 81.98  sell
MCHP Microchip Tech 97.29 66.23  sell
INTC Intel 44.48 38.48  hold
STM STMicroelectro 24.89 2.24  str.sell

COMPANY NEWS

▶ Rich Templeton stepping down after more than 14 years as Texas Instruments' CEO   [Jan-19-18 08:00AM  American City Business Journals]
▶ Can You Triple Your Gains With Nvidia, Other Top Chip Stocks?   [08:00AM  Investor's Business Daily]
▶ Better Buy: Intel Corporation vs. Texas Instruments   [Jan-12-18 11:33AM  Motley Fool]
▶ As Electric Car Use Grows, These Chipmakers Are In The Driver's Seat   [Jan-11-18 04:14PM  Investor's Business Daily]
▶ 5 Best Stocks to Buy Ahead of Q4 Earnings Season   [Jan-10-18 01:15PM  InvestorPlace]
▶ Why Texas Instruments Stock Soared 43% in 2017   [Jan-09-18 04:51PM  Motley Fool]
▶ Bulls bet on energy, this chip stock   [02:06PM  CNBC Videos]
▶ Goldman Throws Its Hat in the ESG Ring   [06:00AM  Investopedia]
▶ The Top Semi Stocks by Market Capitalization   [07:34AM  Market Realist]
▶ Why I'm Buying Texas Instruments Stock   [Dec-22-17 11:30AM  Motley Fool]
▶ Texas Instruments Stock Could Fall Through a Trap Door   [Dec-20-17 03:20PM  TheStreet.com]
▶ 10 Cant-Miss Dividend Growth Stocks for 2018   [Dec-19-17 12:04PM  InvestorPlace]
▶ [$$] GE Slumps as 3M, Texas Instruments Soar in Q4   [Dec-18-17 05:58AM  Barrons.com]
▶ 3 Attractive Income Stocks Whose Dividends Could Double   [Dec-17-17 08:07AM  Motley Fool]
▶ FormFactor Upgraded To Strong Buy; Texas Instruments Hits Record High   [Dec-15-17 02:49PM  Investor's Business Daily]
▶ 2 Tech Giants Are Teaming Up for The Internet of Things   [Dec-13-17 03:19PM  Motley Fool]
▶ The Best Internet of Things Stocks of 2017   [Dec-08-17 12:00PM  Motley Fool]
▶ 3 "Internet of Things" Stocks to Buy Now   [Dec-07-17 12:53PM  Zacks]
▶ 5 Tech Stocks Weathering The Sector's Sell-Off: Investing Action Plan   [Dec-06-17 04:06PM  Investor's Business Daily]
▶ A Look at Recent Price Action in Texas Instruments   [Nov-30-17 02:25PM  TheStreet.com]
▶ Texas Instruments Could Use a Sideways Move   [Nov-28-17 12:59PM  TheStreet.com]
▶ Better Buy: Qualcomm Inc vs. Texas Instruments   [Nov-27-17 11:32AM  Motley Fool]
▶ Texas Instruments Still Looks Very Bullish   [11:51AM  TheStreet.com]
▶ 3 Stocks That Pay You to Own Them   [Nov-16-17 11:31AM  Motley Fool]
▶ When Should You Buy Texas Instruments Incorporated (TXN)?   [Nov-10-17 12:15PM  Simply Wall St.]
▶ 5 Strong Buy Stocks Bursting To New Highs   [Nov-07-17 04:26PM  Zacks]
Financial statements of TXN
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.