PEG Ratio
Higher than 40% of TECHNOLOGY sector peers
Updated 56h ago
Sector Performance
40th percentileTXN
1.63x
Sector Median
1.91x
Sector Avg
7.23x
Deep Analysis
The PEG ratio (price-to-earnings divided by expected earnings growth) of 1.63x means that for each dollar of earnings growth expected, investors are paying $1.63 for Texas Instruments' stock — a value below the sector median of 1.91x, placing TXN in the 40th percentile among its peers, indicating it is cheaper than most in the TECHNOLOGY group.
Year-over-year change is not available, but the quarter-over-quarter increase of +38.1% (from 1.18x to 1.63x) shows the ratio has moved sharply higher. Taken together, the current below-median level suggests the stock is not overly expensive relative to its growth, but the rising trend could imply either slower expected growth or a higher share price catching up. This combination points to a balanced risk/reward scenario — not cheap enough for a strong buy nor overvalued enough for a sell. The metric supports the overall NEUTRAL verdict, as TXN’s PEG ratio is near the sector median but rising, leaving no clear bullish or bearish edge.
Frequently Asked Questions
What does the PEG Ratio tell investors about TXN?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
How does TXN's PEG Ratio compare to its sector?
TXN's PEG Ratio of 1.63x compares to a TECHNOLOGY sector median of 1.91x, placing it in the 40th percentile.
Who are TXN's closest peers by PEG Ratio?
The closest TECHNOLOGY peers by PEG Ratio include: LRCX (2.19x), CSCO (1.08x), ORCL (0.96x), KLAC (8.25x), NOW (29.27x).
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
Master TXN's Valuation
Get the complete institutional research report covering all fundamental and technical metrics.
View full TXN research report →TXN
1.63x
Sector Median
1.91x
Sector Avg
7.23x
How TXN's PEG Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.