Texas Instruments Inc., FCFF calculation

US$ in millions

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)
Net noncash charges	1,009)	784)	1,152)	972)	1,319)
Increase (decrease) from changes in operating capital	(1,099)	(813)	(165)	(428)	313)
Cash flows from operating activities	6,420)	8,720)	8,756)	6,139)	6,649)
Cash payments for interest on long-term debt, net of tax¹	282)	173)	158)	169)	137)
Capital expenditures	(5,071)	(2,797)	(2,462)	(649)	(847)
Free cash flow to the firm (FCFF)	1,631)	6,096)	6,452)	5,659)	5,939)

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).

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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 2021 to 2022 and from 2022 to 2023.

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

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR¹	12.20%	12.80%	12.90%	7.00%	12.40%
Interest Paid, Net of Tax
Cash payments for interest on long-term debt, before tax	321)	198)	181)	182)	156)
Less: Cash payments for interest on long-term debt, tax²	39)	25)	23)	13)	19)
Cash payments for interest on long-term debt, net of tax	282)	173)	158)	169)	137)

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 2023 Calculation
Cash payments for interest on long-term debt, tax = Cash payments for interest on long-term debt × EITR
= 321 × 12.20% = 39

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

Selected Financial Data (US$ in millions)
Enterprise value (EV)	162,210)
Free cash flow to the firm (FCFF)	1,631)
Valuation Ratio
EV/FCFF	99.46
Benchmarks
EV/FCFF, Competitors¹
Advanced Micro Devices Inc.	206.46
Analog Devices Inc.	27.80
Applied Materials Inc.	21.25
Broadcom Inc.	32.83
Intel Corp.	—
KLA Corp.	26.54
Lam Research Corp.	24.49
Micron Technology Inc.	—
NVIDIA Corp.	75.23
ON Semiconductor Corp.	57.89
Qualcomm Inc.	16.96
EV/FCFF, Sector
Semiconductors & Semiconductor Equipment	105.62
EV/FCFF, Industry
Information Technology	41.82

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

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, 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)
Free cash flow to the firm (FCFF)²	1,631)	6,096)	6,452)	5,659)	5,939)
Valuation Ratio
EV/FCFF³	90.39	27.05	24.23	27.67	20.75
Benchmarks
EV/FCFF, Competitors⁴
Advanced Micro Devices Inc.	225.41	38.82	43.41	126.98	169.58
Analog Devices Inc.	25.61	23.12	39.16	27.12	21.68
Applied Materials Inc.	17.40	19.06	26.22	22.52	18.91
Broadcom Inc.	28.53	14.74	19.47	16.54	15.04
Intel Corp.	—	—	16.94	11.08	17.39
KLA Corp.	19.99	19.05	26.29	18.70	20.92
Lam Research Corp.	17.99	24.03	24.02	25.91	9.83
Micron Technology Inc.	—	18.28	33.81	292.39	14.33
NVIDIA Corp.	142.90	78.07	69.47	41.65	27.92
ON Semiconductor Corp.	67.36	20.67	19.86	33.03	46.88
Qualcomm Inc.	11.61	18.18	17.47	30.89	14.91
EV/FCFF, Sector
Semiconductors & Semiconductor Equipment	61.21	34.74	26.16	22.06	18.29
EV/FCFF, Industry
Information Technology	34.25	27.01	27.93	24.12	19.69

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/FCFF = EV ÷ FCFF
= 147,407 ÷ 1,631 = 90.39

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 2021 to 2022 and from 2022 to 2023.

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