Enterprise Value to EBITDA (EV/EBITDA)
Paying user area
Try for free
Texas Instruments Inc. pages available for free this week:
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Texas Instruments Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Texas Instruments Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The financial data reveals several key trends concerning the profitability and earnings performance over the five-year period ending in 2024.
- Net Income
- Net income displayed a rising trend from 2020 through 2022, increasing from 5,595 million USD to 8,749 million USD. However, this was followed by a notable decline in 2023 and further into 2024, dropping to 4,799 million USD, which is below the 2020 level.
- Earnings Before Tax (EBT)
- Similar to net income, EBT showed growth from 6,017 million USD in 2020 to a peak of 10,032 million USD in 2022. Subsequently, it decreased considerably to 7,418 million USD in 2023 and further declined to 5,453 million USD by 2024, reflecting a downward trend in pre-tax earnings after 2022.
- Earnings Before Interest and Tax (EBIT)
- EBIT followed a trajectory comparable to EBT, rising steadily from 6,207 million USD in 2020 to 10,246 million USD in 2022. After reaching its peak, EBIT decreased to 5,961 million USD in 2024, indicating reduced core operating profitability over the last two years of the period.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA also increased consistently from 7,199 million USD in 2020 to 11,225 million USD in 2022. Post-2022 results show a decline to 7,541 million USD in 2024. This pattern underscores a reduction in operating cash flow generation capabilities during the latest period, though the decline in EBITDA is less steep relative to EBIT and net income, suggesting some mitigation through non-operating factors.
Overall, the data depicts a strong growth phase up to 2022 in all key earnings metrics, followed by a pronounced downturn through 2023 and 2024. The declines in profitability measures after 2022 suggest increased operational challenges or external pressures impacting earnings capacity.
Enterprise Value to EBITDA Ratio, Current
Texas Instruments Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Advanced Micro Devices Inc. | |
| Analog Devices Inc. | |
| Applied Materials Inc. | |
| Broadcom Inc. | |
| Intel Corp. | |
| KLA Corp. | |
| Lam Research Corp. | |
| Micron Technology Inc. | |
| NVIDIA Corp. | |
| Qualcomm Inc. | |
| EV/EBITDA, Sector | |
| Semiconductors & Semiconductor Equipment | |
| EV/EBITDA, Industry | |
| Information Technology | |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Texas Instruments Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| EV/EBITDA, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| EV/EBITDA, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
The financial data demonstrates a varying trend in enterprise value (EV) and EBITDA over the five-year period. The enterprise value showed a modest decline from 2020 to 2021, followed by an increase in 2022. There was a subsequent decrease in 2023 before a significant rise to the highest value in 2024. This pattern suggests fluctuations in the market perception or valuation adjustments pertaining to the company’s overall worth.
EBITDA exhibited growth from 2020 through 2022, reaching its peak in 2022. However, this positive trajectory reversed in the subsequent two years, with EBITDA declining substantially in 2023 and further in 2024. The decrease in EBITDA in the latter years indicates potential operational challenges or reduced earnings capacity before accounting for interest, tax, depreciation, and amortization.
The EV/EBITDA ratio, which serves as a valuation metric assessing enterprise value relative to earnings, decreased from a high level in 2020 to the lowest point in 2022, reflecting a more attractive valuation or improved earnings during that period. Thereafter, the ratio increased in 2023 and surged notably in 2024, reaching the highest level in the presented timeframe. This increase suggests that despite declining EBITDA, the enterprise value increased markedly, possibly indicating overvaluation concerns or market optimism in 2024.
- Enterprise Value (EV)
- Fluctuated with a decline initially, followed by increases and decreases, ending at the highest point in 2024.
- EBITDA
- Increased steadily until 2022, then declined in the following two years.
- EV/EBITDA Ratio
- Decreased from 2020 to 2022, indicating better valuation or earnings, then increased sharply in 2023 and 2024, pointing to higher valuation relative to earnings.
In summary, the financial indicators reveal a period of operational growth up to 2022, followed by earnings challenges and a contrasting increase in enterprise value, resulting in a higher EV/EBITDA ratio. This mixture of declining EBITDA with rising valuation metrics in recent years warrants further analysis to understand underlying causes and sustainability of these trends.