Is Texas Instruments Incorporated (TXN) Undervalued?
Based on the current stock price of $176.88 and a P/E ratio of 32.28,Texas Instruments Incorporated has a PEG ratio of 7.39.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 7.39, TXN appears to be potentially overvalued relative to its growth rate of 4.37%.
Based on a PEG ratio of 4.26 (adjusted for dividends).
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How we analyzed TXN
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 32.28and dividing it by the annual growth rate of 4.37%.
PEG = 32.28 (P/E) ÷ 4.37 (Growth) = 7.39
Frequently Asked Questions about TXN
What is the current PEG Ratio for Texas Instruments Incorporated (TXN)?+
The current PEG Ratio for Texas Instruments Incorporated is 7.39. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is TXN stock undervalued right now?+
Based on the PEG ratio of 7.39, Texas Instruments Incorporated appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for TXN?+
The PEGY ratio for Texas Instruments Incorporated is 4.26. This metric accounts for dividend yield (3.21%), providing a more complete valuation picture.