Texas Instruments CAPE ratio

The CAPE Ratio for Texas Instruments (TXN) helps assess its long-term valuation by smoothing earnings over the past 10 years. A high CAPE may indicate overvaluation, while a low CAPE can suggest potential undervaluation.

Texas Instruments operates in the semiconductor industry, with a strong focus on analog chips and embedded processors—segments that tend to be significantly less cyclical than memory-focused businesses. Thanks to its diversified end-markets, stable pricing power, and long product life cycles, TXN’s CAPE usually shows less volatility compared to companies in more commoditized semiconductor areas.

Comparing Texas Instruments’ CAPE to its historical averages and to other analog semiconductor peers can provide useful insight into whether TXN may represent a solid long-term investment opportunity.