Stock Analysis on Net

Texas Instruments Inc. (NASDAQ:TXN)

Price to FCFE (P/FCFE)

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Free Cash Flow to Equity (FCFE)

Texas Instruments Inc., FCFE 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
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
Capital expenditures (5,071) (2,797) (2,462) (649) (847)
Proceeds from issuance of long-term debt 3,000 1,494 1,495 1,498 1,491
Repayment of debt (500) (500) (550) (500) (750)
Free cash flow to equity (FCFE) 3,849 6,917 7,239 6,488 6,543

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
FCFE Free cash flow to equity is the cash flow available to Texas Instruments Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Texas Instruments Inc. FCFE decreased from 2021 to 2022 and from 2022 to 2023.

Price to FCFE Ratio, Current

Texas Instruments Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 909,287,673
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 3,849
FCFE per share 4.23
Current share price (P) 172.87
Valuation Ratio
P/FCFE 40.84
Benchmarks
P/FCFE, Competitors1
Advanced Micro Devices Inc. 258.86
Analog Devices Inc. 23.74
Applied Materials Inc. 22.51
Broadcom Inc. 35.47
Intel Corp.
KLA Corp. 37.18
Lam Research Corp. 27.20
Micron Technology Inc.
NVIDIA Corp. 87.55
ON Semiconductor Corp. 254.81
Qualcomm Inc. 18.31
P/FCFE, Sector
Semiconductors & Semiconductor Equipment 90.59
P/FCFE, Industry
Information Technology 43.27

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

1 Click competitor name to see calculations.

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


Price to FCFE Ratio, Historical

Texas Instruments Inc., historical P/FCFE calculation, comparison to benchmarks

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 909,287,673 906,205,795 923,547,062 920,239,191 933,975,619
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 3,849 6,917 7,239 6,488 6,543
FCFE per share3 4.23 7.63 7.84 7.05 7.01
Share price1, 4 159.20 182.29 171.42 169.93 131.47
Valuation Ratio
P/FCFE5 37.61 23.88 21.87 24.10 18.77
Benchmarks
P/FCFE, Competitors6
Advanced Micro Devices Inc. 241.70 33.46 44.72 133.51
Analog Devices Inc. 22.28 24.14 34.67 33.98 37.52
Applied Materials Inc. 17.53 19.17 27.20 23.21 19.53
Broadcom Inc. 30.06 14.62 22.35 9.16 5.64
Intel Corp. 14.25 8.57 16.55
KLA Corp. 26.78 9.01 28.05 19.15 9.84
Lam Research Corp. 18.67 24.95 34.58 16.89 6.14
Micron Technology Inc. 18.66 37.24 81.71 13.92
NVIDIA Corp. 151.04 54.83 35.20 44.23 30.19
ON Semiconductor Corp. 261.49 21.51 38.47 50.56 9.02
Qualcomm Inc. 11.97 19.13 17.93 34.91 16.39
P/FCFE, Sector
Semiconductors & Semiconductor Equipment 48.11 28.83 25.00 17.80 14.04
P/FCFE, Industry
Information Technology 33.34 26.56 27.30 23.29 18.92

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 Data adjusted for splits and stock dividends.

2 See details »

3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 3,849,000,000 ÷ 909,287,673 = 4.23

4 Closing price as at the filing date of Texas Instruments Inc. Annual Report.

5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 159.20 ÷ 4.23 = 37.61

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Texas Instruments Inc. P/FCFE ratio increased from 2021 to 2022 and from 2022 to 2023.