Stock Analysis on Net
Stock Analysis on Net

Texas Instruments Inc. (NASDAQ:TXN)

Enterprise Value to EBITDA (EV/EBITDA)

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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Texas Instruments Inc., EBITDA calculation

US$ in millions

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12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income 6,510 8,749 7,769 5,595 5,017
Add: Income tax expense 908 1,283 1,150 422 711
Earnings before tax (EBT) 7,418 10,032 8,919 6,017 5,728
Add: Interest and debt expense 353 214 184 190 170
Earnings before interest and tax (EBIT) 7,771 10,246 9,103 6,207 5,898
Add: Depreciation 1,175 925 755 733 708
Add: Amortization of acquisition-related intangibles — — 142 198 288
Add: Amortization of capitalized software 63 54 57 61 54
Earnings before interest, tax, depreciation and amortization (EBITDA) 9,009 11,225 10,057 7,199 6,948

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Texas Instruments Inc. EBITDA increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Enterprise Value to EBITDA Ratio, Current

Texas Instruments Inc., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 151,471
Earnings before interest, tax, depreciation and amortization (EBITDA) 9,009
Valuation Ratio
EV/EBITDA 16.81
Benchmarks
EV/EBITDA, Competitors1
Advanced Micro Devices Inc. 60.80
Analog Devices Inc. 16.06
Applied Materials Inc. 18.92
Broadcom Inc. 29.60
Intel Corp. 15.72
KLA Corp. 19.94
Lam Research Corp. 20.61
Micron Technology Inc. 51.32
NVIDIA Corp. 59.03
ON Semiconductor Corp. 8.63
Qualcomm Inc. 18.52
EV/EBITDA, Sector
Semiconductors & Semiconductor Equipment 44.95
EV/EBITDA, Industry
Information Technology 28.58

Based on: 10-K (reporting date: 2023-12-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.

Enterprise Value to EBITDA Ratio, Historical

Texas Instruments Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 147,407 164,860 156,316 156,606 123,206
Earnings before interest, tax, depreciation and amortization (EBITDA)2 9,009 11,225 10,057 7,199 6,948
Valuation Ratio
EV/EBITDA3 16.36 14.69 15.54 21.75 17.73
Benchmarks
EV/EBITDA, Competitors4
Advanced Micro Devices Inc. 65.81 22.63 34.19 62.10 82.59
Analog Devices Inc. 15.56 16.23 38.55 23.61 18.67
Applied Materials Inc. 15.75 11.04 17.54 16.82 14.60
Broadcom Inc. 26.42 13.54 19.72 18.89 16.32
Intel Corp. 18.96 6.20 6.02 6.40 8.73
KLA Corp. 15.67 14.97 19.26 18.10 14.14
Lam Research Corp. 15.35 11.34 16.67 17.76 10.07
Micron Technology Inc. 32.38 3.26 6.05 6.46 3.90
NVIDIA Corp. 95.68 57.59 58.96 52.90 21.10
ON Semiconductor Corp. 10.57 11.65 14.40 20.27 11.13
Qualcomm Inc. 12.82 7.84 12.76 19.49 10.55
EV/EBITDA, Sector
Semiconductors & Semiconductor Equipment 25.99 14.44 15.49 14.76 11.56
EV/EBITDA, Industry
Information Technology 23.37 18.28 20.37 19.53 14.42

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 See details »

2 See details »

3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 147,407 ÷ 9,009 = 16.36

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Texas Instruments Inc. EV/EBITDA ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.