TXN PEG Ratio Analysis

The PEG ratio (price-to-earnings divided by expected earnings growth) of 0.79x means the stock’s price is modest relative to its projected profit growth, with a value below 1.0x often seen as undervaluing future expansion.

TXN’s 0.79x sits below the sector median of 0.92x and places it at the 43rd percentile among peers, indicating slightly cheaper growth-adjusted valuation than most technology firms. The metric is decreasing over time, with the most recent quarter at 0.79x versus 0.80x in the prior quarter, a -1.3% quarter-over-quarter change; year-over-year data is not available, but the historical sequence (0.79x, 0.80x, 1.63x) shows the fall has been substantial. A low and falling PEG ratio can suggest that expected growth is improving or that the price is declining faster than earnings forecasts — in either case, this reduces valuation risk relative to growth. However, a decreasing PEG can also reflect deteriorating earnings quality or downward revisions to price that are still unfolding, so the opportunity is tempered by uncertainty. This metric supports the overall NEUTRAL verdict because the attractive growth-adjusted level is offset by the negative trend, leaving no clear directional edge.

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