Texas Instruments Inc., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	4,799)	6,510)	8,749)	7,769)	5,595)
Net noncash charges	1,262)	1,009)	784)	1,152)	972)
Increase (decrease) from changes in operating capital	257)	(1,099)	(813)	(165)	(428)
Cash flows from operating activities	6,318)	6,420)	8,720)	8,756)	6,139)
Cash payments for interest on long-term debt, net of tax¹	416)	282)	173)	158)	169)
Capitalized interest, net of tax²	18)	10)	5)	7)	—)
Capital expenditures	(4,820)	(5,071)	(2,797)	(2,462)	(649)
Free cash flow to the firm (FCFF)	1,932)	1,640)	6,101)	6,459)	5,659)

Based on: 10-K (reporting date: 2024-12-31), 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).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Texas Instruments Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Texas Instruments Inc. FCFF decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.

Texas Instruments Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Effective Income Tax Rate (EITR)
EITR¹	12.00%	12.20%	12.80%	12.90%	7.00%
Interest Paid, Net of Tax
Cash payments for interest on long-term debt, before tax	473)	321)	198)	181)	182)
Less: Cash payments for interest on long-term debt, tax²	57)	39)	25)	23)	13)
Cash payments for interest on long-term debt, net of tax	416)	282)	173)	158)	169)
Interest Costs Capitalized, Net of Tax
Capitalized interest, before tax	20)	11)	6)	8)	—)
Less: Capitalized interest, tax³	2)	1)	1)	1)	—)
Capitalized interest, net of tax	18)	10)	5)	7)	—)

Based on: 10-K (reporting date: 2024-12-31), 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).

¹ See details »

² 2024 Calculation
Cash payments for interest on long-term debt, tax = Cash payments for interest on long-term debt × EITR
= 473 × 12.00% = 57

³ 2024 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= 20 × 12.00% = 2

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

Selected Financial Data (US$ in millions)
Enterprise value (EV)	183,168)
Free cash flow to the firm (FCFF)	1,932)
Valuation Ratio
EV/FCFF	94.82
Benchmarks
EV/FCFF, Competitors¹
Advanced Micro Devices Inc.	75.07
Analog Devices Inc.	34.70
Applied Materials Inc.	17.44
Broadcom Inc.	57.29
Intel Corp.	—
KLA Corp.	35.73
Lam Research Corp.	27.18
Micron Technology Inc.	230.27
Monolithic Power Systems Inc.	48.83
NVIDIA Corp.	56.16
Qualcomm Inc.	14.38
EV/FCFF, Sector
Semiconductors & Semiconductor Equipment	84.40
EV/FCFF, Industry
Information Technology	46.94

Based on: 10-K (reporting date: 2024-12-31).

¹ Click competitor name to see calculations.

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

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

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	172,634)	147,407)	164,860)	156,316)	156,606)
Free cash flow to the firm (FCFF)²	1,932)	1,640)	6,101)	6,459)	5,659)
Valuation Ratio
EV/FCFF³	89.36	89.85	27.02	24.20	27.67
Benchmarks
EV/FCFF, Competitors⁴
Advanced Micro Devices Inc.	72.30	225.41	38.82	43.41	126.98
Analog Devices Inc.	33.82	25.61	23.12	39.16	27.12
Applied Materials Inc.	17.55	17.40	19.06	26.22	22.52
Broadcom Inc.	51.00	28.53	14.74	19.47	16.54
Intel Corp.	—	—	—	16.94	11.08
KLA Corp.	29.56	19.99	19.05	26.29	18.70
Lam Research Corp.	24.56	17.99	24.08	24.40	26.78
Micron Technology Inc.	203.18	—	16.58	28.79	188.88
Monolithic Power Systems Inc.	41.80	58.38	117.73	91.92	80.84
NVIDIA Corp.	61.32	142.92	78.06	69.50	41.66
Qualcomm Inc.	16.26	11.61	18.18	17.47	30.89
EV/FCFF, Sector
Semiconductors & Semiconductor Equipment	56.69	60.26	35.28	26.38	22.16
EV/FCFF, Industry
Information Technology	40.33	34.40	26.74	27.56	23.97

Based on: 10-K (reporting date: 2024-12-31), 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).

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² See details »

³ 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 172,634 ÷ 1,932 = 89.36

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Texas Instruments Inc. EV/FCFF ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Texas Instruments Inc. (NASDAQ:TXN)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical