Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EV to EBITDA Ratio, Current
EV to EBITDA Ratio, Historical

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Texas Instruments Inc., EBITDA calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	6,510)	8,749)	7,769)	5,595)	5,017)
Add: Income tax expense	908)	1,283)	1,150)	422)	711)
Earnings before tax (EBT)	7,418)	10,032)	8,919)	6,017)	5,728)
Add: Interest and debt expense	353)	214)	184)	190)	170)
Earnings before interest and tax (EBIT)	7,771)	10,246)	9,103)	6,207)	5,898)
Add: Depreciation	1,175)	925)	755)	733)	708)
Add: Amortization of acquisition-related intangibles	—)	—)	142)	198)	288)
Add: Amortization of capitalized software	63)	54)	57)	61)	54)
Earnings before interest, tax, depreciation and amortization (EBITDA)	9,009)	11,225)	10,057)	7,199)	6,948)

Based on: 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), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
EBITDA	To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.	Texas Instruments Inc. EBITDA increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

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)	173,114)
Earnings before interest, tax, depreciation and amortization (EBITDA)	9,009)
Valuation Ratio
EV/EBITDA	19.22
Benchmarks
EV/EBITDA, Competitors¹
Advanced Micro Devices Inc.	46.75
Analog Devices Inc.	26.24
Applied Materials Inc.	14.78
Broadcom Inc.	45.78
First Solar Inc.	14.85
Intel Corp.	10.03
KLA Corp.	22.11
Lam Research Corp.	18.66
Micron Technology Inc.	11.04
Monolithic Power Systems Inc.	50.91
NVIDIA Corp.	92.25
Qualcomm Inc.	13.44
EV/EBITDA, Sector
Semiconductors & Semiconductor Equipment	62.10
EV/EBITDA, Industry
Information Technology	37.83

Based on: 10-K (reporting date: 2023-12-31).

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, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	147,407)	164,860)	156,316)	156,606)	123,206)
Earnings before interest, tax, depreciation and amortization (EBITDA)²	9,009)	11,225)	10,057)	7,199)	6,948)
Valuation Ratio
EV/EBITDA³	16.36	14.69	15.54	21.75	17.73
Benchmarks
EV/EBITDA, Competitors⁴
Advanced Micro Devices Inc.	65.81	22.63	34.19	62.10	82.59
Analog Devices Inc.	15.56	16.23	38.55	23.61	18.67
Applied Materials Inc.	15.75	11.04	17.54	16.82	14.60
Broadcom Inc.	26.42	13.54	19.72	18.89	16.32
First Solar Inc.	11.52	53.82	7.64	12.99	32.49
Intel Corp.	18.96	6.20	6.02	6.40	8.73
KLA Corp.	15.67	14.97	19.26	18.10	14.14
Lam Research Corp.	15.36	11.36	16.94	18.35	10.69
Micron Technology Inc.	32.38	3.26	6.05	6.46	3.90
Monolithic Power Systems Inc.	62.08	39.34	68.91	90.99	51.73
NVIDIA Corp.	95.69	57.58	58.98	52.92	21.08
Qualcomm Inc.	12.82	7.84	12.76	19.49	10.55
EV/EBITDA, Sector
Semiconductors & Semiconductor Equipment	26.57	14.71	15.61	14.87	11.67
EV/EBITDA, Industry
Information Technology	23.81	18.66	20.75	19.96	14.60

Based on: 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), 10-K (reporting date: 2019-12-31).

¹ See details »

² See details »

³ 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 147,407 ÷ 9,009 = 16.36

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/EBITDA	Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock.	Texas Instruments Inc. EV/EBITDA ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Texas Instruments Inc. (NASDAQ:TXN)

Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Enterprise Value to EBITDA Ratio, Current

Enterprise Value to EBITDA Ratio, Historical