What Is TXN Fair Value?
Texas Instruments Inc. (TXN) fair value estimate using multiple valuation models, updated daily.
As of August 1, 2026, Texas Instruments Inc. (TXN) has a composite fair value estimate of $198.74 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $275.74, suggesting the stock is overvalued by 27.9%.
Data as of August 1, 2026 (today)
Composite Fair Value
Overvalued4 of 4 models$198.74
vs. current price of $275.74(-27.9%)
How Is TXN Fair Value Calculated?
Four independent models estimate what TXN is worth. Each uses different inputs and assumptions. The composite blends them by weight.
TXN Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
35% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$193.24
-29.9%Overvalued
Inputs used
DDM (Dividend Discount Model)
15% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
$165.57
-40.0%Overvalued
Inputs used
TXN Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
25% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$61.42
-77.7%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
25% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$315.90
+14.6%Fair Value
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $275.74 is 29.9% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $4.69B | $4.21B |
| Year 2 | $5.86B | $4.73B |
| Year 3 | $7.33B | $5.31B |
| Year 4 | $9.16B | $5.97B |
| Year 5 | $11.45B | $6.70B |
| Year 6 | $14.31B | $7.53B |
| Year 7 | $17.88B | $8.46B |
| Year 8 | $22.36B | $9.50B |
| Year 9 | $27.95B | $10.67B |
| Year 10 | $34.93B | $11.98B |
| Terminal Value | $407.10B | $139.62B |
What Are TXN's Key Financial Metrics?
Earnings & Growth
Current Price
$275.74
EPS (TTM)
$6.59
Forward P/E
26.5
Profit Margin
31.1%
Cash & Balance Sheet
Free Cash Flow
3.5B
EBITDA
9.5B
Book Value
$19.72
Total Debt
14.1B
What Do Analysts Say About TXN?
Low
$225.00
Average
$324.45
High
$405.00
Upside
+17.7%
TXN Fair Value FAQ
What is the fair value of TXN?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), TXN's estimated fair value is $198.74. The stock is currently trading at $275.74, which makes it overvalued by our analysis.
How is TXN's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is TXN overvalued or undervalued?
Based on our analysis, TXN is overvalued. The current price of $275.74 is 27.9% above our estimated fair value of $198.74.
What do Wall Street analysts say about TXN?
31 analysts cover Texas Instruments Inc. with a consensus rating of "Buy." The average price target is $324.45, ranging from $225.00 to $405.00. This implies 17.7% upside from the current price.