Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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- Income Statement
- Statement of Comprehensive Income
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
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Current Valuation Ratios
Texas Instruments Inc., current price multiples
| Texas Instruments Inc. | 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. | Semiconductors & Semiconductor Equipment | Information Technology | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||
| Current share price (P) | ||||||||||||||||
| No. shares of common stock outstanding | ||||||||||||||||
| Growth rate (g) | ||||||||||||||||
| Earnings per share (EPS) | ||||||||||||||||
| Next year expected EPS | ||||||||||||||||
| Operating profit per share | ||||||||||||||||
| Sales per share | ||||||||||||||||
| Book value per share (BVPS) | ||||||||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||||||||
| Price to earnings (P/E) | ||||||||||||||||
| Price to next year expected earnings | ||||||||||||||||
| Price-earnings-growth (PEG) | ||||||||||||||||
| Price to operating profit (P/OP) | ||||||||||||||||
| Price to sales (P/S) | ||||||||||||||||
| Price to book value (P/BV) | ||||||||||||||||
Based on: 10-K (reporting date: 2025-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Texas Instruments Inc., historical price multiples
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
Based on: 10-K (reporting date: 2025-12-31), 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).
The valuation ratios demonstrate varied trends over the five-year period. Generally, the ratios increased from 2023 to 2025, suggesting a growing premium placed on the company’s earnings, operating profit, sales, and book value by the market. However, the period between 2021 and 2023 showed more mixed results.
- Price to Earnings (P/E)
- The Price to Earnings ratio decreased from 20.38 in 2021 to 18.88 in 2022, then increased to 22.24 in 2023. A significant increase is then observed, rising to 34.72 in 2024 and further to 40.19 in 2025. This indicates a growing investor confidence in the company’s earnings potential over the latter part of the period.
- Price to Operating Profit (P/OP)
- The Price to Operating Profit ratio followed a similar pattern to the P/E ratio. It declined from 17.67 in 2021 to 16.29 in 2022, increased to 19.75 in 2023, and then experienced substantial growth, reaching 30.49 in 2024 and 33.37 in 2025. This suggests that the market increasingly values the company’s operational profitability.
- Price to Sales (P/S)
- The Price to Sales ratio remained relatively stable between 2021 and 2023, fluctuating around 8.25-8.63. A noticeable increase began in 2024, reaching 10.65, and continued into 2025, with a value of 11.37. This indicates a growing willingness to pay for each dollar of revenue generated by the company.
- Price to Book Value (P/BV)
- The Price to Book Value ratio decreased from 11.87 in 2021 to 11.33 in 2022, then experienced a more substantial decline to 8.57 in 2023. The ratio then began to recover, increasing to 9.86 in 2024 and 12.35 in 2025. This suggests a shifting perception of the company’s net asset value relative to its market price, with a recovery in perceived value towards the end of the period.
Overall, the observed trends suggest a strengthening market valuation of the company from 2023 onwards, as reflected in the increasing price multiples. The earlier period (2021-2023) showed more modest or declining ratios, indicating a potentially more cautious market sentiment at that time.
Price to Earnings (P/E)
Texas Instruments Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| 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. | ||||||
| P/E Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| P/E Ratio, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Texas Instruments Inc. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibited fluctuating behavior over the five-year period. Initial values decreased, followed by a substantial increase, suggesting shifts in investor sentiment and earnings expectations.
- Overall Trend
- The P/E ratio demonstrated an initial decline from 2021 to 2022, followed by a period of increase from 2022 to 2025. The ratio nearly doubled between 2022 and 2025.
- P/E Ratio - 2021 to 2022
- From December 31, 2021, to December 31, 2022, the P/E ratio decreased from 20.38 to 18.88. This decrease coincided with an increase in earnings per share (EPS), indicating that earnings growth outpaced the increase in share price during this period.
- P/E Ratio - 2022 to 2023
- The P/E ratio increased from 18.88 in 2022 to 22.24 in 2023. This increase occurred despite a decrease in EPS, suggesting that the share price increased at a faster rate than earnings.
- P/E Ratio - 2023 to 2025
- A significant increase in the P/E ratio is observed from 2023 to 2025. The ratio rose from 22.24 in 2023 to 34.72 in 2024 and further to 40.19 in 2025. This substantial increase occurred while EPS experienced a decline in 2024 and only a modest increase in 2025, indicating a considerable rise in investor expectations relative to earnings.
- Relationship to Earnings Per Share
- The P/E ratio’s movements are inversely related to changes in EPS, particularly evident in the later years of the period. Declining EPS in 2023 and 2024, coupled with increasing share price, drove the P/E ratio higher. The modest EPS increase in 2025 did not prevent further P/E ratio expansion.
The increasing P/E ratio from 2022 to 2025 suggests growing investor optimism or a potential overvaluation relative to earnings. Further investigation into the factors driving share price appreciation would be warranted.
Price to Operating Profit (P/OP)
Texas Instruments Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating profit (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| 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. | ||||||
| P/OP Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| P/OP Ratio, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Texas Instruments Inc. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The price to operating profit (P/OP) ratio for the analyzed period exhibits considerable fluctuation. Initially, the ratio decreased, followed by a period of substantial increase. The share price and operating profit per share both influenced these changes.
- Overall Trend
- The P/OP ratio demonstrates a non-linear trend over the five-year period. It begins with a decrease from 2021 to 2022, then increases significantly in 2023 and continues to rise through 2025.
- 2021-2022
- From December 31, 2021, to December 31, 2022, the P/OP ratio decreased from 17.67 to 16.29. This decline occurred alongside increases in both the share price and operating profit per share, suggesting that the increase in operating profit outpaced the increase in share price during this period.
- 2022-2023
- The period between December 31, 2022, and December 31, 2023, saw a notable increase in the P/OP ratio, rising from 16.29 to 19.75. This increase was driven by a decrease in operating profit per share, coupled with a decrease in share price, but the decline in operating profit had a more pronounced effect on the ratio.
- 2023-2025
- From December 31, 2023, to December 31, 2025, the P/OP ratio experienced a substantial and consistent increase, moving from 19.75 to 33.37. This increase is attributable to a combination of factors: a share price increase and a relatively stable, but lower, operating profit per share. The share price increase significantly contributed to the rising P/OP ratio.
- Share Price and Operating Profit Relationship
- The fluctuations in the P/OP ratio are directly related to the interplay between the share price and operating profit per share. Periods of increasing operating profit per share, when not matched by equivalent share price increases, tend to lower the P/OP ratio. Conversely, share price increases, particularly when operating profit per share remains stable or declines, lead to increases in the P/OP ratio.
The increasing P/OP ratio in the later years of the period suggests that investors were willing to pay a higher premium for each dollar of operating profit, potentially reflecting increased confidence in future growth prospects or a shift in market sentiment.
Price to Sales (P/S)
Texas Instruments Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Revenue (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| 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. | ||||||
| P/S Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| P/S Ratio, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Texas Instruments Inc. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The price-to-sales ratio for the period demonstrates a fluctuating pattern. Initially, the ratio exhibited a slight decrease, followed by an increase in later years. Share price and sales per share both experienced volatility throughout the observed timeframe, influencing the overall P/S ratio.
- Price-to-Sales Ratio (P/S)
- The P/S ratio began at 8.63 in 2021, decreasing slightly to 8.25 in 2022. It remained relatively stable at 8.26 in 2023 before increasing substantially to 10.65 in 2024. This upward trend continued into 2025, with the ratio reaching 11.37.
- Share Price
- The share price showed an initial increase from US$171.42 in 2021 to US$182.29 in 2022. A subsequent decline was observed in 2023, falling to US$159.20. The share price then recovered, rising to US$183.03 in 2024 and further increasing to US$221.44 in 2025.
- Sales per Share
- Sales per share increased from US$19.86 in 2021 to US$22.10 in 2022. A decrease was then recorded in 2023, with sales per share falling to US$19.27. This downward trend continued into 2024, reaching US$17.18, before partially recovering to US$19.48 in 2025.
The increase in the P/S ratio in 2024 and 2025 appears to be driven more by the increase in share price than by a corresponding increase in sales per share. While sales per share experienced a modest recovery in 2025, it did not reach the levels observed in 2021 or 2022. The most significant change occurred in the share price, which contributed to the higher P/S ratio in the later years of the period.
Price to Book Value (P/BV)
Texas Instruments Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| 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. | ||||||
| P/BV Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| P/BV Ratio, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Texas Instruments Inc. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The price-to-book value ratio exhibited fluctuations over the five-year period. Initially, the ratio demonstrated a slight decrease followed by a significant decline and subsequent recovery.
- Overall Trend
- The price-to-book value ratio began at 11.87 in 2021, decreased to 11.33 in 2022, then experienced a substantial drop to 8.57 in 2023. A recovery was observed in 2024, with the ratio increasing to 9.86, and this upward trend continued into 2025, reaching 12.35.
- Share Price Influence
- The share price generally increased from 2021 to 2022, which contributed to a relatively stable price-to-book value. However, the share price decreased significantly in 2023, coinciding with the largest decline in the price-to-book value ratio. The subsequent increases in share price in 2024 and 2025 align with the ratio’s recovery.
- Book Value per Share Influence
- Book value per share consistently increased from 2021 to 2023, which would typically exert downward pressure on the price-to-book value ratio. However, the substantial decrease in share price in 2023 overwhelmed this effect, resulting in a significant drop in the ratio. The stabilization and slight decrease in book value per share in 2025 coincided with continued growth in the price-to-book value ratio.
The most pronounced change occurred between 2022 and 2023, where the price-to-book value ratio decreased by approximately 24.4%. The period from 2023 to 2025 shows a 43.8% increase in the ratio, indicating a shift in market valuation relative to the company’s book value.