Texas Instruments is a global semiconductor design and manufacturing company that develops analog ICs and embedded processors. The company was founded in 1930 and is based in Dallas, Texas.
TXN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for TXN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Texas Instruments Inc ranked in the 34th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for TXN, they are:
The company has produced more trailing twelve month cash flow than 93.3% of its sector Technology.
The business' balance sheet reveals debt to be 5% of the company's capital (with equity being the remaining amount). Approximately merely 15.14% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
TXN's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 44.37% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as TXN, try ADBE, ATVI, COHU, DBX, and STX.
In the recently released second-quarter earnings, semiconductor player, Texas Instruments (TXN), has surpassed both revenue and earnings consensus estimates by a wide margin. Earnings surprise is not that big a surprise for Texas Instruments' investors. In fact, the company has managed to outperform consensus earnings estimates in eleven quarters and...
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