TXNNEUTRAL

EV/EBITDA

32.7x

Higher than 43% of TECHNOLOGY sector peers

Updated 56h ago

Sector Performance

43th percentile

TXN

32.7x

Sector Median

34.6x

Sector Avg

38.9x

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Deep Analysis

The current EV/EBITDA of 32.7x means that for each dollar of earnings before interest, taxes, depreciation, and amortization, investors are paying $32.70 for the entire company value (including debt).

This is slightly below the sector median of 34.6x, placing TXN in the 43rd percentile among its technology peers—meaning about 43% of peers have a lower multiple. The trend over the last eight quarters is stable, with a quarter-over-quarter decline of 3.2% from 33.7x; no year-over-year change is available. A stable yet slightly declining multiple near the sector median suggests neither extreme overvaluation nor a buying opportunity, but rather a balanced risk profile. This metric supports the overall NEUTRAL verdict, as the valuation is in line with peers and the flat trend offers no clear bullish or bearish signal.

Frequently Asked Questions

What does the EV/EBITDA tell investors about TXN?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does TXN's EV/EBITDA compare to its sector?

TXN's EV/EBITDA of 32.7x compares to a TECHNOLOGY sector median of 34.6x, placing it in the 43th percentile.

Who are TXN's closest peers by EV/EBITDA?

The closest TECHNOLOGY peers by EV/EBITDA include: NOW (36.5x), CSCO (28.2x), KLAC (51.6x), ORCL (16.6x), MU (15.2x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.