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Texas Instruments Inc. (TXN) | Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

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Texas Instruments Inc., FCFF calculation

USD $ in millions

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  12 months ended Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006
chart Net income
chart Add: Net noncash charges
chart Less: Increase (decrease) from changes in operating capital
chart Net cash provided by operating activities
chart Add: Cash payments for interest, net of amounts capitalized, net of tax
chart Less: Additions to property, plant and equipment
chart Free cash flow to the firm (FCFF)
Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Texas Instruments Inc.'s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Texas Instruments Inc.'s FCFF declined from 2008 to 2009 but then increased from 2009 to 2010 exceeding 2008 level.

Enterprise Value to FCFF Ratio, Current

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Texas Instruments Inc., current EV/FCFF

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  Texas Instruments Inc. Technology
Selected Financial Data (USD $ in millions)
Enterprise value (EV)  
Free cash flow to the firm (FCFF)  
Ratio
EV/FCFF

If company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.

Otherwise, if company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Enterprise Value to FCFF Ratio, Historical

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Texas Instruments Inc., EV/FCFF calculation

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    Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006
  Selected Financial Data (USD $ in millions)
chart Enterprise value (EV)
chart Free cash flow to the firm (FCFF)
  EV/FCFF, Comparison to Industry
chart Texas Instruments Inc.1
  Industry, Technology

2010 Calculations

1 EV/FCFF = EV ÷ FCFF
= ÷ =

Ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Texas Instruments Inc.'s EV/FCFF ratio increased from 2008 to 2009 and from 2009 to 2010.

May 24, 2012

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