Texas Instruments Inc. (NASDAQ:TXN)

The valuation ratios exhibited varied trends over the observed period. Generally, ratios increased from the beginning of the period through early 2024, followed by some moderation or fluctuation. A notable increase in valuation multiples occurred between the first and second quarters of 2024, before stabilizing or decreasing slightly in subsequent quarters.

Price to Earnings (P/E)

The Price to Earnings ratio demonstrated a generally increasing trend from 19.01 in March 2022 to 34.08 in June 2024. Following this peak, the ratio experienced a slight decline to 30.23 by March 2025, before increasing again to 40.19 by December 2025. This suggests a growing investor confidence in earnings potential, followed by a period of reassessment and then renewed optimism.

Price to Operating Profit (P/OP)

Similar to the P/E ratio, the Price to Operating Profit ratio generally increased from 16.30 in March 2022 to 30.38 in June 2024. The subsequent quarters showed some volatility, with a decrease to 26.40 in September 2025, and a final increase to 33.37 in December 2025. This pattern mirrors the P/E ratio, indicating a correlation between market valuation and operating profitability.

Price to Sales (P/S)

The Price to Sales ratio showed a more moderate increase compared to the earnings-based ratios. Starting at 8.24 in March 2022, it rose to 11.37 in December 2025, with a peak of 11.71 in September 2024. This indicates a growing willingness of investors to pay a premium for each dollar of revenue generated, though the increase was less pronounced than for earnings-based multiples.

Price to Book Value (P/BV)

The Price to Book Value ratio exhibited fluctuations throughout the period. It decreased from 11.14 in March 2022 to 7.74 in September 2023, before increasing to 12.35 by December 2025. This suggests changing perceptions of the company’s asset value relative to its market price. The ratio’s behavior was less consistently upward trending than the other ratios analyzed.

Overall, the observed trends suggest a period of increasing valuation, particularly in terms of earnings and operating profit, peaking in mid-2024. The subsequent period shows some stabilization and fluctuation, with a renewed increase in the P/E and P/OP ratios by the end of the observed timeframe. The Price to Sales ratio demonstrated a more gradual increase, while the Price to Book Value ratio showed the most variability.

The price-to-earnings (P/E) ratio exhibited fluctuating behavior over the observed period, spanning from March 31, 2022, to December 31, 2025. Initial values indicated a relatively stable P/E ratio, followed by a period of increasing volatility and a generally upward trend towards the end of the period.

Initial Period (Mar 31, 2022 – Dec 31, 2022)

The P/E ratio began at 19.01 and demonstrated moderate fluctuations, ranging from a low of 16.05 to a high of 19.01. This suggests a period of relative stability in investor valuation of earnings. A slight increase was observed in the final quarter of 2022, reaching 18.88.

Increasing Volatility (Mar 31, 2023 – Dec 31, 2023)

The P/E ratio experienced increased volatility in 2023. It initially decreased to 18.08 in March, then rose to 20.79 in June, before declining significantly to 18.13 by September. The ratio then increased sharply to 22.24 in December, indicating growing investor optimism or potentially speculative behavior. This period shows a wider range of values compared to the previous year.

Continued Ascent and Peak (Mar 31, 2024 – Jun 30, 2025)

The P/E ratio continued its upward trajectory in the first half of 2024, peaking at 37.07 in June. This represents the highest P/E ratio observed throughout the entire period. Subsequent quarters saw a decline to 34.72 by December 2024 and 34.52 by June 2025. A final increase was noted in September 2025 (31.02) and December 2025 (40.19), concluding the period with a notably elevated P/E ratio.

Overall, the P/E ratio demonstrated a clear trend of increasing valuation multiples, particularly in the latter half of the observed timeframe. The increasing P/E ratio suggests that investors were willing to pay a higher price for each dollar of earnings, potentially reflecting expectations of future growth or a shift in market sentiment. The volatility observed in 2023 indicates periods of uncertainty or reassessment of the company’s prospects.

Relationship to Earnings Per Share

The P/E ratio’s fluctuations are influenced by both share price and earnings per share. While the share price generally increased over the period, the earnings per share experienced a more consistent decline. The increasing P/E ratio, despite declining earnings, suggests that the market placed a greater premium on the company’s future earnings potential or other qualitative factors.

The Price to Operating Profit (P/OP) ratio for the analyzed period demonstrates considerable fluctuation. Initially, the ratio exhibited a decreasing trend from March 31, 2022, to September 30, 2022, followed by an increase through December 31, 2022. Subsequently, the ratio increased significantly in the first half of 2023 before declining again in the latter half of the year. This pattern of volatility continued into 2024 and 2025, with peaks and troughs observed throughout each year.

Overall Trend

The P/OP ratio generally increased over the entire period, starting at 16.30 in March 2022 and reaching 33.37 by December 2025. However, this overall increase was not linear, and was punctuated by substantial quarterly variations.

2022-2023 Volatility

From March 2022 to December 2023, the P/OP ratio ranged from a low of 13.69 to a high of 30.38. This period shows a clear sensitivity to market conditions, potentially reflecting changes in investor sentiment or expectations regarding future operating performance. The most significant increase occurred between March 2023 and June 2023, rising from 15.69 to 18.24.

Recent Performance (2024-2025)

The period from 2024 to 2025 continued to exhibit volatility, with the P/OP ratio fluctuating between 23.82 and 33.37. The highest value was recorded in December 2025, suggesting a potentially optimistic market valuation at that point. The ratio experienced a decrease from June 2025 (29.91) to September 2025 (26.40) before recovering to 33.37 in December 2025.

Relationship to Share Price and Operating Profit

The fluctuations in the P/OP ratio appear to be driven by a combination of changes in the share price and operating profit per share. While both components experienced variations throughout the period, the share price demonstrated a more pronounced degree of volatility, potentially contributing to the observed fluctuations in the ratio. The increasing trend in the ratio suggests that the market has been willing to pay a higher premium for each dollar of operating profit over time.

In conclusion, the P/OP ratio demonstrates a dynamic pattern, characterized by significant quarterly variations and an overall increasing trend. This suggests that the company’s valuation, relative to its operating profitability, has been subject to market sentiment and evolving investor expectations.

The price-to-sales (P/S) ratio for the analyzed period demonstrates considerable fluctuation. Initially, the ratio exhibited a decline from 8.24 in March 2022 to a low of 7.10 in September 2022, before recovering to 8.25 by December 2022. This pattern suggests a degree of market sensitivity to short-term performance or external factors during that period.

Overall Trend

From the beginning of the observed period through December 2023, the P/S ratio generally remained within a range of approximately 7.10 to 11.71. However, a more pronounced upward trend became evident in the first half of 2024, peaking at 11.71 in June 2024. Subsequently, the ratio decreased to 10.65 by December 2024, followed by a further decline to 9.06 in September 2025, and a final increase to 11.37 by December 2025.

A notable increase in the P/S ratio occurred between March 2024 and June 2024, moving from 9.47 to 11.25. This suggests a potential shift in investor sentiment, possibly driven by anticipated future growth or improved market conditions. The subsequent decline from June 2024 to September 2025 indicates a possible correction or reassessment of these expectations.

Relationship to Share Price and Sales per Share

The P/S ratio’s movements correlate with changes in both the share price and sales per share. Periods of increasing share price, such as the rise from March 2024 to June 2024, often coincide with increases in the P/S ratio. Conversely, declines in share price, as seen from September 2023 to March 2024, tend to be associated with a decrease in the P/S ratio. The sales per share generally decreased over the period, but the P/S ratio did not always move inversely, indicating that investor expectations and market sentiment play a significant role.

The highest P/S ratio recorded during the period was 11.71 in June 2024, while the lowest was 7.10 in September 2022. The ratio concluded the observed period at 11.37, representing an increase from the beginning of the period, but a decrease from its peak in June 2024. This suggests a dynamic valuation influenced by both company performance and broader market forces.

Recent Fluctuations

The most recent quarterly changes show a decrease in the P/S ratio from 10.65 in December 2024 to 9.06 in September 2025, followed by a recovery to 11.37 in December 2025. This volatility suggests ongoing uncertainty or adjustment in the market’s assessment of the company’s value relative to its sales.

The price-to-book value (P/BV) ratio for the analyzed period demonstrates considerable fluctuation. Initially, the ratio exhibited relative stability, followed by a period of decline, and then a resurgence towards the end of the observed timeframe.

Initial Period (Mar 31, 2022 – Dec 31, 2022)

The P/BV ratio began at 11.14 and remained relatively consistent, fluctuating between 9.88 and 11.33. This suggests a stable market valuation relative to the company’s book value during this period. A slight dip was observed in September 2022, but the ratio recovered by the end of the year.

Declining Phase (Mar 31, 2023 – Sep 30, 2023)

A noticeable downward trend emerged in the first three quarters of 2023. The P/BV ratio decreased from 9.79 to a low of 7.74. This decline coincided with an increasing book value per share, indicating that the share price was not keeping pace with the company’s net asset value as reflected on the balance sheet.

Recovery and Subsequent Increase (Dec 31, 2023 – Dec 31, 2025)

Beginning in December 2023, the P/BV ratio began to recover, reaching 8.57. This upward momentum continued through the subsequent quarters, peaking at 12.35 by December 2025. This suggests a renewed investor confidence or a reassessment of the company’s future earnings potential relative to its book value. The book value per share experienced a modest decline in the final period, while the share price increased significantly, driving the P/BV ratio higher.

Book Value Per Share Trend

Throughout the period, the book value per share generally increased, moving from 15.20 to 17.93. The rate of increase slowed in the latter half of the period, and a slight decrease was observed in the final quarter. This suggests a consistent, though moderating, growth in the company’s net asset base.

Overall Volatility

The P/BV ratio exhibited a range of 4.61 (from a high of 12.35 to a low of 7.74), indicating substantial volatility in market perception of the company’s value relative to its book value. This volatility warrants further investigation into the underlying factors influencing investor sentiment.

In summary, the P/BV ratio experienced periods of stability, decline, and recovery. The latter portion of the analyzed period demonstrates a strengthening valuation relative to book value, although significant fluctuations were present throughout the entire timeframe.