Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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Current Valuation Ratios
Texas Instruments Inc., current price multiples
| Texas Instruments Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Semiconductors & Semiconductor Equipment | Information Technology | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||
| Current share price (P) | ||||||||||||||||
| No. shares of common stock outstanding | ||||||||||||||||
| Growth rate (g) | ||||||||||||||||
| Earnings per share (EPS) | ||||||||||||||||
| Next year expected EPS | ||||||||||||||||
| Operating profit per share | ||||||||||||||||
| Sales per share | ||||||||||||||||
| Book value per share (BVPS) | ||||||||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||||||||
| Price to earnings (P/E) | ||||||||||||||||
| Price to next year expected earnings | ||||||||||||||||
| Price-earnings-growth (PEG) | ||||||||||||||||
| Price to operating profit (P/OP) | ||||||||||||||||
| Price to sales (P/S) | ||||||||||||||||
| Price to book value (P/BV) | ||||||||||||||||
Based on: 10-K (reporting date: 2024-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Texas Instruments Inc., historical price multiples
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
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).
- Price to Earnings (P/E) Ratio
- The Price to Earnings ratio displays a decreasing trend from 27.95 in 2020 to a low of 18.88 in 2022, indicating increased earnings relative to the market price during that period. However, it subsequently rises to 22.24 in 2023 and sees a significant increase to 34.72 by 2024. This suggests a growing market optimism or possibly higher valuation expectations relative to earnings at the end of the period.
- Price to Operating Profit (P/OP) Ratio
- The Price to Operating Profit ratio exhibits a similar pattern to the P/E ratio, starting at 26.53 in 2020 and declining to 16.29 by 2022. It then rises moderately to 19.75 in 2023 and increases sharply to 30.49 in 2024. This pattern reflects improving operating profitability relative to price initially, followed by heightened valuation multiples later in the timeline.
- Price to Sales (P/S) Ratio
- The Price to Sales ratio decreases steadily from 10.81 in 2020 to 8.25 in 2022, indicating that sales grew or valuations adjusted downward in relative terms. It remains relatively stable at 8.26 in 2023 but climbs back to 10.65 in 2024, mirroring the increased valuation trend seen in earnings and operating profit multiples in the final year.
- Price to Book Value (P/BV) Ratio
- The Price to Book Value ratio shows a consistent downward trend from 17.02 in 2020 to 8.57 in 2023, indicating a declining market valuation relative to the company's net asset value. However, in 2024, there is a modest rebound to 9.86, suggesting a slight recovery in market perception of the company's book value or asset quality.
Price to Earnings (P/E)
Texas Instruments Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| P/E Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| P/E Ratio, Industry | ||||||
| Information Technology | ||||||
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 2024 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Texas Instruments Inc. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The financial data indicates several notable trends in the key metrics over the five-year period.
- Share Price
- The share price exhibits a fluctuating pattern. It started at $169.93 at the end of 2020 and showed a gradual increase through 2022, peaking at $182.29. However, in 2023, the share price declined to $159.20, followed by a recovery and a notable rise to $183.03 by the end of 2024, reaching the highest observed value in the timeframe.
- Earnings Per Share (EPS)
- EPS increased significantly from $6.08 in 2020 to a peak of $9.65 in 2022, indicating strong profitability growth during this period. However, starting in 2023, EPS declined sharply to $7.16 and dropped further to $5.27 in 2024. This reversal suggests potential challenges impacting earnings in the latter years.
- Price-to-Earnings Ratio (P/E)
- The P/E ratio declined from 27.95 in 2020 to a low of 18.88 in 2022, aligned with rising EPS that likely caused the ratio compression. Subsequently, the P/E ratio increased to 22.24 in 2023 and surged to 34.72 in 2024 despite decreasing EPS, indicating that the share price valuation became more expensive relative to earnings. This divergence could imply heightened market expectations or concerns independent of the earnings trend.
Overall, the data reveals a strong earnings growth phase until 2022, followed by a decline in profitability alongside a fluctuating share price. The elevated P/E ratio in 2024 may signal increased market optimism or valuation pressures despite weaker earnings performance.
Price to Operating Profit (P/OP)
Texas Instruments Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating profit (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| P/OP Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| P/OP Ratio, Industry | ||||||
| Information Technology | ||||||
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 2024 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Texas Instruments Inc. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The analysis of the provided financial data reveals several notable trends and changes over the period from December 31, 2020 to December 31, 2024.
- Share Price
- The share price exhibited moderate growth initially, increasing from 169.93 US$ in 2020 to 182.29 US$ in 2022. However, there was a decline to 159.2 US$ in 2023 followed by a strong recovery to 183.03 US$ by the end of 2024. This pattern suggests volatility in market valuation with potential influences from external market conditions or company-specific factors affecting investor sentiment.
- Operating Profit Per Share
- Operating profit per share displayed a significant upward trend from 6.4 US$ in 2020 to a peak of 11.19 US$ in 2022. This was followed by a notable decline in the subsequent years, dropping to 8.06 US$ in 2023 and further down to 6 US$ in 2024. The peak in 2022 indicates a period of strong operational performance, which diminished considerably in the following years, possibly indicating operational challenges or increased costs.
- Price to Operating Profit Ratio (P/OP)
- The price to operating profit ratio decreased from 26.53 in 2020 to 16.29 in 2022, reflecting an improvement in valuation relative to operating profit, suggesting the shares became more attractively priced compared to earnings. However, this ratio increased to 19.75 in 2023 and surged to 30.49 in 2024, indicating that the share price grew disproportionately in relation to its operating profit or that operating profit declined faster than share price growth. This increase might point to market optimism not fully supported by operational profitability.
In summary, the company experienced peak operating profitability in 2022 with corresponding favorable valuation metrics. The subsequent years showed a decline in operating profit per share despite the recovery and growth in share price in 2024, resulting in a higher price-to-operating-profit ratio. This divergence may warrant further investigation into the drivers behind the share price recovery and the sustainability of operating profits moving forward.
Price to Sales (P/S)
Texas Instruments Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Revenue (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| P/S Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| P/S Ratio, Industry | ||||||
| Information Technology | ||||||
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 2024 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Texas Instruments Inc. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The analysis of the provided financial data reveals several noteworthy trends over the five-year period from 2020 to 2024.
- Share Price
- The share price exhibits a general upward trajectory, starting at $169.93 in 2020 and reaching $183.03 by 2024. There is a slight dip observed in 2023, where the price decreases to $159.20 from $182.29 in 2022, but this is followed by a significant recovery in 2024, ending higher than all previous years in the period.
- Sales Per Share
- This metric shows a rising trend until 2022, increasing from $15.71 in 2020 to a peak of $22.10. However, from 2022 onwards, sales per share decline, dropping to $19.27 in 2023 and further down to $17.18 in 2024. This suggests a reduction in revenue generated per share in the latter years of the dataset.
- Price-to-Sales (P/S) Ratio
- The P/S ratio decreases from 10.81 in 2020 to a steadier range around 8.25-8.63 during 2021 to 2023, indicating that the share price relative to sales per share was more conservative in this period. In 2024, the ratio rises sharply to 10.65, nearing the level seen in 2020, which may be associated with the rebound in share price despite declining sales per share.
In summary, while the share price shows resilience with a notable recovery by the end of the period, the sales per share have declined after peaking in 2022. The fluctuations in the P/S ratio suggest changes in market valuation relative to sales, with a notable increase in 2024 reflecting a potentially higher market optimism or valuation premium not supported by sales growth.
Price to Book Value (P/BV)
Texas Instruments Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| P/BV Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| P/BV Ratio, Industry | ||||||
| Information Technology | ||||||
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 2024 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Texas Instruments Inc. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The share price of the company experienced fluctuating movements over the observed period. It increased moderately from $169.93 at the end of 2020 to $182.29 by the end of 2022, then declined to $159.20 by the end of 2023 before rising again to $183.03 at the end of 2024. This indicates some volatility in market valuation with a recovery in the latest year.
The book value per share (BVPS) showed a consistent upward trend throughout the years. Starting at $9.98 in 2020, it increased significantly each year to $18.57 by the end of 2024. This consistent growth suggests accumulation of equity and improved net asset backing per share over time.
The price-to-book value (P/BV) ratio declined steadily from 17.02 in 2020 to a low of 8.57 in 2023, before experiencing a slight increase to 9.86 in 2024. This downward trend mainly reflects the faster growth in book value relative to share price for most years, implying that the market valuation per unit of net assets decreased over the period but showed mild recovery most recently.
- Summary of trends
-
Overall, the company showed strengthening intrinsic value as reflected by the rising book value per share, while the share price exhibited more variable performance. The declining P/BV ratio over several years suggests that the market price became less premium compared to net assets, potentially indicating more conservative market sentiment or a revaluation. The partial rebound in the share price and P/BV ratio in the final year might signal renewed investor confidence or improved market conditions.