Stock Analysis on Net
Stock Analysis on Net
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Texas Instruments Inc. (NASDAQ:TXN)

Price to FCFE (P/FCFE)

Intermediate level

Free Cash Flow to Equity (FCFE)

Texas Instruments Inc., FCFE calculation

US$ in millions

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income 5,017  5,580  3,682  3,595  2,986 
Net noncash charges 1,319  1,007  1,263  866  1,188 
Increase (decrease) from changes in operating capital 313  602  418  153  94 
Cash flows from operating activities 6,649  7,189  5,363  4,614  4,268 
Capital expenditures (847) (1,131) (695) (531) (551)
Proceeds from issuance of long-term debt 1,491  1,500  1,099  499  498 
Repayment of debt (750) (500) (625) (1,000) (1,000)
Free cash flow to equity (FCFE) 6,543  7,058  5,142  3,582  3,215 

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-24).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Texas Instruments Inc.’s 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.’s FCFE increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.

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 915,943,779
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 6,543 
FCFE per share 7.14
Current share price (P) 150.76
Valuation Ratio
P/FCFE 21.10
Benchmarks
P/FCFE, Competitors1
Advanced Micro Devices Inc. —
Analog Devices Inc. 40.14
Apple Inc. 38.83
Applied Materials Inc. 20.20
Broadcom Inc. 6.73
Cisco Systems Inc. 35.82
Intel Corp. 13.12
Lam Research Corp. 16.39
Micron Technology Inc. 81.71
NVIDIA Corp. 77.98
Qualcomm Inc. 24.57
P/FCFE, Sector
Technology Hardware & Equipment 26.01
P/FCFE, Industry
Technology 29.41

Based on: 10-K (filing date: 2020-02-20).

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, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 933,975,619 938,484,603 983,787,502 999,639,733 1,005,257,723
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 6,543  7,058  5,142  3,582  3,215 
FCFE per share3 7.01 7.52 5.23 3.58 3.20
Share price1, 4 131.47 107.31 103.93 77.14 52.46
Valuation Ratio
P/FCFE5 18.77 14.27 19.88 21.53 16.40
Benchmarks
P/FCFE, Competitors6
Advanced Micro Devices Inc. — — — — —
Analog Devices Inc. 37.52 50.53 4.66 11.17 25.01
Apple Inc. 21.64 14.82 11.05 8.20 6.70
Applied Materials Inc. 19.53 10.21 10.60 35.38 6.20
Broadcom Inc. 5.62 13.28 11.06 6.67 2,157.85
Cisco Systems Inc. 14.83 44.19 8.62 10.13 8.42
Intel Corp. 16.55 18.10 21.34 12.86 6.39
Lam Research Corp. 6.14 14.02 141.80 4.72 7.22
Micron Technology Inc. 13.92 — 11.22 — 16.93
NVIDIA Corp. 30.19 69.82 21.54 16.33 15.91
Qualcomm Inc. 16.39 — 5.55 12.64 5.86
P/FCFE, Sector
Technology Hardware & Equipment 17.14 19.64 11.34 10.00 7.39
P/FCFE, Industry
Technology 21.30 23.80 13.64 12.91 10.32

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-24).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2019 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 6,543,000,000 ÷ 933,975,619 = 7.01

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

5 2019 Calculation
P/FCFE = Share price ÷ FCFE per share
= 131.47 ÷ 7.01 = 18.77

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.’s P/FCFE ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.