Stock fact sheet · data as of
Texas Instruments Incorporated (TXN): fair value, margin of safety and Wheel Score
Ticker symbol TXN · Technology · Semiconductors · United States · Growth Quality
Is TXN undervalued?
TXN closed at 311.49 on 5 Nov 2026, more than 30% above the GLS average fair value of 135.32. Only 1 of the 9 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the "below fair value" Wheel Trade Filter keeps names like this under 70.
The 9 models disagree widely: GLS Growth gives 2.19 while Graham Growth gives 423.90. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, TXN is clearly faster-growing than it is cheap, so the nightly engine files it under Growth (value score 6, growth score 35, out of 100). It also carries the Quality tag (Quality = moat 7.5+ out of 10 and Piotroski 7+).
Nine valuation models for TXN
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 45.42 | -85% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 60.63 | -81% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 423.90 | +36% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 183.69 | -41% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 2.19 | -99% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 199.29 | -36% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 131.25 | -58% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 85.05 | -73% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 86.47 | -72% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -4.99 | -102% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 333.71 | +7% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health TXN scores 8/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 8.5 out of 10 - high returns on capital, steady margins and growth that held up through bad years point to a durable business.
Returns on capital are high - ROIC 15.8%, ROE 30.7%, ROA 14.5% - with debt at 0.95 times equity and a free-cash-flow yield of 2.6%.
The dividend yield is 1.86% at a payout ratio of 73%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Analog 79%, Embedded Processing 15%, All Other Segments 6% (fiscal year FY2025).
Institutional ownership scores 10/10, insider activity 3/10 and Congressional trading 2/10 on the GLS smart-money scales; the last recorded Congressional buy was on 17 Sep 2026.
| Piotroski F-score | 8 / 9 | ROIC | 15.8% |
|---|---|---|---|
| GLS Moat | 8.5 / 10 | ROE | 30.7% |
| Debt / equity | 0.95 | ROA | 14.5% |
| Free-cash-flow yield | 2.6% | Payout ratio | 73% |
| Institutions | 10 / 10 | Insiders · Congress | 3 · 2 / 10 |
Wheel Score 51: Fair
TXN scores 51 out of 100 on the Wheel Score (Fair band, 50-69) because it fails filter 3, below fair value - trades 130% above our fair value. A stock must pass all 9 Wheel Trade Filters to reach 70. Otherwise the parts read: value weak, premium strong, moat strong, health strong, red flags strong, option trading strong, stability strong.
Implied volatility is 44% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 140,419 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 9.9M shares a day on a market cap of $284.6B, with a beta of 1.38 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that strong.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 130% above our fair value |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 130% above fair value | |
| Premium | Strong | implied volatility 44% | |
| Moat | Strong | moat 8.5/10 | |
| Health | Strong | Piotroski 8/9 | |
| Red Flags | Strong | Red Flags score 95/100 | |
| Option trading | Strong | 12,862 contracts a day, 140,419 open interest | |
| Stability | Strong | beta 1.38, $284.6B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 26 Jan 2027, 82 days away - outside the window of a 30-45-day put sold today.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Semiconductors
The 12 companies below are the closest to Texas Instruments Incorporated by market cap within the Semiconductors industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| LRCX Lam Research Corporation | 221.43 | 123.45 | -79% | 49Weak | $277.1B |
| AMAT Applied Materials, Inc. | 369.40 | 244.93 | -51% | 47Weak | $293.2B |
| INTC Intel Corp. | 58.27 | 19.05 | -206% | 38Weak | $309.7B |
| ARM Arm Holdings plc American Depositary Shares | 191.80 | 32.79 | -485% | 36Weak | $204.8B |
| ADI Analog Devices, Inc. | 406.24 | 138.81 | -193% | 48Weak | $196.8B |
| KLAC KLA Corporation | 149.79 | 72.63 | -106% | 52Fair | $195.2B |
| QCOM QUALCOMM Incorporated | 173.19 | 265.30 | +35% | 49Weak | $184.9B |
| ASML ASML Holding N.V. | 1,496.30 | 1,187.25 | -26% | 53Fair | $576.7B |
| MRVL Marvell Technology, Inc. | 159.80 | 71.58 | -123% | 36Weak | $139.9B |
| AMD Advanced Micro Devices, Inc. | 488.78 | 137.76 | -255% | 43Weak | $797.9B |
| MU Micron Technology, Inc. | 795.23 | 1,637.28 | +51% | 89Prime | $899.7B |
| ASX ASE Technology Holding Co., Ltd. | 37.51 | 18.48 | -103% | 43Weak | $82.8B |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about TXN
Is TXN undervalued right now?
No: at 311.49 the stock trades 130% above the GLS average fair value of 135.32 (data as of 5 Nov 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of TXN and what does it mean?
TXN scores 51 out of 100 (Fair) - it fails Wheel Trade Filter 3. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for TXN?
135.32 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Texas Instruments Incorporated report earnings next?
The next earnings report is due on 26 Jan 2027, 82 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does TXN have listed options, and how liquid are they?
Yes. The nightly snapshot found 820 listed contracts with 140,419 open interest across all expiries and implied volatility of 44% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.