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Texas Instruments Inc  (NAS:TXN) Shiller PE Ratio: 35.01 (As of Today)

As of today, Texas Instruments Inc's current share price is $106.78. Texas Instruments Inc's E10 for the quarter that ended in Mar. 2019 was $3.05. Texas Instruments Inc's Shiller P/E Ratio for today is 35.01.

NAS:TXN' s Shiller PE Ratio Range Over the Past 10 Years
Min: 11.46   Max: 48.08
Current: 35.03

11.46
48.08

During the past years, Texas Instruments Inc's highest Shiller P/E Ratio was 48.08. The lowest was 11.46. And the median was 23.07.

NAS:TXN's Shiller PE Ratio is ranked lower than
53% of the 174 Companies
in the Global industry.

( Industry Median: 38.89 vs. NAS:TXN: 35.03 )

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Texas Instruments Inc's adjusted earnings per share data for the three months ended in Mar. 2019 was $1.260. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $3.05 for the trailing ten years ended in Mar. 2019.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Texas Instruments Inc Annual Data

Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Shiller PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 26.02 25.07 32.51 42.99 32.97

Texas Instruments Inc Quarterly Data

Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
Shiller PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 40.67 41.31 38.63 32.97 34.80

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Texas Instruments Inc Distribution

* The bar in red indicates where Texas Instruments Inc's Shiller PE Ratio falls into.



Calculation

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Texas Instruments Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/ E10
=106.78/3.05
=35.01

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Texas Instruments Inc's E10 for the fiscal year that ended in Dec18 is calculated as:

For example, Texas Instruments Inc's adjusted earnings per share data for the three months ended in Mar. 2019 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Mar. 2019 (Change)*Current CPI (Mar. 2019)
=1.26/254.202*254.202
=1.260

Current CPI (Mar. 2019) = 254.202.

Texas Instruments Inc Quarterly Data

per_share_eps CPI Adj_EPS
200906 0.200 215.693 0.236
200909 0.420 215.969 0.494
200912 0.520 215.949 0.612
201003 0.520 217.631 0.607
201006 0.620 217.965 0.723
201009 0.710 218.439 0.826
201012 0.770 219.179 0.893
201103 0.550 223.467 0.626
201106 0.560 225.722 0.631
201109 0.510 226.889 0.571
201112 0.260 225.672 0.293
201203 0.220 229.392 0.244
201206 0.380 229.478 0.421
201209 0.670 231.407 0.736
201212 0.230 229.601 0.255
201303 0.320 232.773 0.349
201306 0.580 233.504 0.631
201309 0.560 234.149 0.608
201312 0.460 233.049 0.502
201403 0.440 236.293 0.473
201406 0.620 238.343 0.661
201409 0.760 238.031 0.812
201412 0.760 234.812 0.823
201503 0.610 236.119 0.657
201506 0.650 238.638 0.692
201509 0.760 237.945 0.812
201512 0.800 236.525 0.860
201603 0.690 238.132 0.737
201606 0.790 241.018 0.833
201609 0.980 241.428 1.032
201612 1.020 241.432 1.074
201703 0.970 243.801 1.011
201706 1.030 244.955 1.069
201709 1.260 246.819 1.298
201712 0.340 246.524 0.351
201803 1.350 249.554 1.375
201806 1.400 251.989 1.412
201809 1.580 252.439 1.591
201812 1.270 251.233 1.285
201903 1.260 254.202 1.260

Add all the adjusted EPS together and divide 10 will get our .


Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.


Be Aware

The Shiller P/E assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, the Shiller P/E and P/S ratio will give false valuations.


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