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TXN

Texas Instruments Inc. – Semiconductor and Related Device Manufacturing
Texas Instruments Incorporated is a global semiconductor company that designs, manufactures, tests and sells analog and embedded processing chips for markets such as industrial, automotive, personal electronics, communications equipment and enterprise systems. Its passion to create a better world by making electronics more affordable through semiconductors is alive today, as each generation of innovation builds upon the last to make our technology smaller, more efficient, more reliable and more affordable - making it possible for semiconductors to go into electronics everywhere. It thinks of this as Engineering Progress. It's what it does and has been doing for decades.
Analysis Results
Intrinsic Value $214.78
Latest Price $154.78
Relative Value 28% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 14.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 14.6%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 9.2 8.47
2023 10.5 8.93
2024 12.1 9.42
2025 13.8 9.94
2026 15.8 10.5
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 245 billion. This corresponds to a present value of 149 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 47.2 billion. Adding in the terminal value gives a total present value of 196 billion.

There are presently 914.0 million outstanding shares, so the intrinsic value per share is 214.78.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 27,370,000,000
Current Cash 19,478,000,000
Current Liabilities 5,138,000,000
Current Debt 1,000,000,000
Non-Cash Working Capital (NCWC) 3,754,000,000
Change in NCWC 1,923,000,000
EBIT 18,312,000,000
Tax Provision 2,300,000,000
Depreciation and Amortization 1,908,000,000
Capital Expenditure -4,924,000,000
Unlevered Free Cash Flow 14,857,883,282
Current Assets 10,239,000,000
Current Cash 6,568,000,000
Current Liabilities 2,390,000,000
Current Debt 550,000,000
Non-Cash Working Capital (NCWC) 1,831,000,000
Change in NCWC 80,000,000
EBIT 6,116,000,000
Tax Provision 422,000,000
Depreciation and Amortization 992,000,000
Capital Expenditure -649,000,000
Unlevered Free Cash Flow 6,110,056,672
Current Assets 8,761,000,000
Current Cash 5,387,000,000
Current Liabilities 2,123,000,000
Current Debt 500,000,000
Non-Cash Working Capital (NCWC) 1,751,000,000
Change in NCWC -388,000,000
EBIT 5,975,000,000
Tax Provision 711,000,000
Depreciation and Amortization 1,050,000,000
Capital Expenditure -847,000,000
Unlevered Free Cash Flow 5,048,340,607
Current Assets 8,097,000,000
Current Cash 4,233,000,000
Current Liabilities 2,474,000,000
Current Debt 749,000,000
Non-Cash Working Capital (NCWC) 2,139,000,000
Change in NCWC -368,000,000
EBIT 7,034,000,000
Tax Provision 1,106,000,000
Depreciation and Amortization 954,000,000
Capital Expenditure -1,131,000,000
Unlevered Free Cash Flow 5,325,433,742
Current Assets 8,734,000,000
Current Cash 4,469,000,000
Current Liabilities 2,258,000,000
Current Debt 500,000,000
Non-Cash Working Capital (NCWC) 2,507,000,000
Change in NCWC 173,000,000
EBIT 6,412,000,000
Tax Provision 2,398,000,000
Depreciation and Amortization 904,000,000
Capital Expenditure -695,000,000
Unlevered Free Cash Flow 4,265,056,578
Current Assets 7,457,000,000
Current Cash 3,490,000,000
Current Liabilities 2,264,000,000
Current Debt 631,000,000
Non-Cash Working Capital (NCWC) 2,334,000,000
Change in NCWC 33,000,000
EBIT 5,103,000,000
Tax Provision 1,335,000,000
Depreciation and Amortization 955,000,000
Capital Expenditure -531,000,000
Unlevered Free Cash Flow 4,178,153,144
Current Assets 7,074,000,000
Current Cash 3,218,000,000
Current Liabilities 2,555,000,000
Current Debt 1,000,000,000
Non-Cash Working Capital (NCWC) 2,301,000,000
Change in NCWC -265,000,000
EBIT 4,532,000,000
Tax Provision 1,230,000,000
Depreciation and Amortization 1,133,000,000
Capital Expenditure -551,000,000
Unlevered Free Cash Flow 3,526,808,349
Current Assets 7,768,000,000
Current Cash 3,541,000,000
Current Liabilities 2,662,000,000
Current Debt 1,001,000,000
Non-Cash Working Capital (NCWC) 2,566,000,000
Change in NCWC 123,000,000
EBIT 4,226,000,000
Tax Provision 1,053,000,000
Depreciation and Amortization 1,230,000,000
Capital Expenditure -385,000,000
Unlevered Free Cash Flow 4,045,322,147
Current Assets 8,019,000,000
Current Cash 3,829,000,000
Current Liabilities 2,747,000,000
Current Debt 1,000,000,000
Non-Cash Working Capital (NCWC) 2,443,000,000
Change in NCWC 108,000,000
EBIT 2,661,000,000
Tax Provision 592,000,000
Depreciation and Amortization 1,297,000,000
Capital Expenditure -412,000,000
Unlevered Free Cash Flow 3,081,991,285
Current Assets 8,230,000,000
Current Cash 3,965,000,000
Current Liabilities 3,430,000,000
Current Debt 1,500,000,000
Non-Cash Working Capital (NCWC) 2,335,000,000
Change in NCWC -440,000,000
EBIT 2,687,000,000
Tax Provision 176,000,000
Depreciation and Amortization 1,299,000,000
Capital Expenditure -495,000,000
Unlevered Free Cash Flow 2,806,601,033

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