TXNNEUTRAL

TXN P/E Ratio Analysis

42.0x

Higher than 55% of TECHNOLOGY sector peers

Updated 77h ago·SEC filings & market data

Key Takeaway

A P/E ratio of 42.0x means investors pay $42 for every $1 of the company's annual earnings per share, a common gauge of how expensive a stock is relative to its profits.

Sector Performance

55th percentile

TXN

42.0x

Sector Median

39.5x

Sector Avg

41.3x

Prior Period

42.1x(Aug 2026)

→ Stable

📊

Deep Analysis

A P/E ratio of 42.0x means investors pay $42 for every $1 of the company's annual earnings per share, a common gauge of how expensive a stock is relative to its profits.

This sits just under the sector median of 42.9x, and the 44th percentile rank among peers indicates it is cheaper than 56% of comparable technology companies. The metric is decreasing, with a quarter-over-quarter change of -0.3% (from 42.1x to 42.0x), while the year-over-year change is not available; the most recent three values show a decline from 50.5x to 42.1x to 42.0x. The combination of a high but falling P/E suggests valuation pressure is easing, though the multiple remains substantial enough to carry some downside risk if earnings disappoint. This metric supports the overall NEUTRAL verdict: the P/E is aligned with the sector norm and trending lower, indicating no clear overvaluation or bargain relative to peers.

Frequently Asked Questions

What does the P/E Ratio tell investors about TXN?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

How does TXN's P/E Ratio compare to its sector?

TXN's P/E Ratio of 42.0x compares to a TECHNOLOGY sector median of 39.5x, placing it in the 55th percentile.

Who are TXN's closest peers by P/E Ratio?

The closest TECHNOLOGY peers by P/E Ratio include: CSCO (37.1x), HPE (43.8x), DELL (34.2x), LRCX (52.7x), KLAC (57.2x).

📚

Learn More About P/E Ratio

DCF Valuation: How to Estimate What a Stock Is Actually Worth

Discounted Cash Flow is the most rigorous way to value a company. It's also the most misunderstood. Here's a plain-English walkthrough with a real example.

The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.