Enterprise Value (EV)
Current Enterprise Value (EV)
Texas Instruments Inc., current enterprise value calculation
| Current share price (P) | $193.29 |
| No. shares of common stock outstanding | 909,137,169 |
| US$ in millions | |
| Common equity (market value)1 | 175,727) |
| Add: Preferred stock, $25 par value; none issued (per books) | —) |
| Total equity | 175,727) |
| Add: Current portion of long-term debt (per books) | 750) |
| Add: Long-term debt, excluding current portion (per books) | 12,846) |
| Total equity and debt | 189,323) |
| Less: Cash and cash equivalents | 3,200) |
| Less: Short-term investments | 4,380) |
| Enterprise value (EV) | 181,743) |
Based on: 10-K (reporting date: 2024-12-31).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 193.29 × 909,137,169
Historical Enterprise Value (EV)
Texas Instruments Inc., EV calculation
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 Data adjusted for splits and stock dividends.
2 Closing price as at the filing date of Texas Instruments Inc. Annual Report.
3 2024 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 183.03 × 910,332,971
The financial data reveals several notable trends over the five-year period from 2020 to 2024. First, the common equity (market value) and total equity show parallel movements, indicating that common equity constitutes the entirety of total equity.
- Equity Trends
- From 2020 to 2022, both common equity and total equity steadily increased from approximately 156 billion US dollars to 165 billion US dollars, demonstrating growth and potential strengthening of the company's capital base. However, in 2023, there is a decline to roughly 145 billion US dollars, representing a significant drop from the prior year. This decrease might suggest challenges such as market valuation pressures or lower retained earnings.
- In 2024, equity values rise again to approximately 167 billion US dollars, surpassing previous highs. This rebound may indicate recovery or favorable market conditions.
- Total Equity and Debt Trends
- Total equity and debt combined follow a similar pattern as equity alone but with generally higher figures, reflecting the addition of debt to the capital structure.
- The total rises from 163 billion US dollars in 2020 to 174 billion US dollars in 2022. It then declines to about 156 billion US dollars in 2023 before increasing markedly to 180 billion US dollars in 2024.
- This fluctuation suggests a dynamic approach to financing, possibly involving debt issuance or repayment aligning with market or operational needs.
- Enterprise Value (EV) Trends
- Enterprise value shows a somewhat different trend compared to equity and total capital.
- EV decreases slightly from 157 billion US dollars in 2020 to 156 billion in 2021, then rises to 165 billion in 2022. It falls again to around 147 billion in 2023 before climbing to approximately 173 billion US dollars in 2024.
- The volatility in EV relative to equity and debt could reflect changes in market perceptions, operational performance, or adjustments in debt levels and cash holdings, affecting the enterprise valuation.
Overall, the data suggest a period of growth through 2022, a downturn in 2023 across equity, total capital, and enterprise value, followed by a recovery in 2024. The movements in total equity and debt imply adjustment in financing strategies, while the enterprise value fluctuations reflect changing market conditions and valuation dynamics within the period analyzed.