What Is TXN Fair Value?
Texas Instruments Inc. (TXN) fair value estimate using multiple valuation models, updated daily.
As of October 31, 2026, Texas Instruments Inc. (TXN) has a composite fair value estimate of $201.69 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $300.84, suggesting the stock is overvalued by 33.0%.
Data as of October 31, 2026 (today)
Composite Fair Value
Overvalued4 of 4 models$201.69
vs. current price of $300.84(-33.0%)
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 →
$241.76
-19.6%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 →
$169.92
-43.5%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 →
$65.41
-78.3%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.
$241.18
-19.8%Overvalued
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 $300.84 is 19.6% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $5.97B | $5.36B |
| Year 2 | $7.47B | $6.01B |
| Year 3 | $9.33B | $6.73B |
| Year 4 | $11.67B | $7.55B |
| Year 5 | $14.58B | $8.46B |
| Year 6 | $18.23B | $9.49B |
| Year 7 | $22.79B | $10.64B |
| Year 8 | $28.48B | $11.93B |
| Year 9 | $35.60B | $13.37B |
| Year 10 | $44.50B | $14.99B |
| Terminal Value | $507.26B | $170.91B |
What Are TXN's Key Financial Metrics?
Earnings & Growth
Current Price
$300.84
EPS (TTM)
$7.71
Forward P/E
26.1
Profit Margin
34.3%
Cash & Balance Sheet
Free Cash Flow
4.8B
EBITDA
10.7B
Book Value
$20.99
Total Debt
13.6B
What Do Analysts Say About TXN?
Low
$250.00
Average
$336.86
High
$400.00
Upside
+12.0%
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 $201.69. The stock is currently trading at $300.84, 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 $300.84 is 33.0% above our estimated fair value of $201.69.
What do Wall Street analysts say about TXN?
29 analysts cover Texas Instruments Inc. with a consensus rating of "Buy." The average price target is $336.86, ranging from $250.00 to $400.00. This implies 12.0% upside from the current price.