Texas Instruments

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker Analyst Analyst Email
BMO Capital Markets Ambrish Srivastava ambrish.srivastava@bmo.com
RBC Capital Markets Amit Daryanani amit.daryanani@rbccm.com
Wedbush Securities Betsy Van Hees betsy.vanhees@wedbush.com
Evercore ISI C.J. Muse cj.muse@evercoreisi.com
Drexel Hamilton Cody Acree cacree@drexelhamilton.com
B Riley & Co Craig A. Ellis cellis@brileyco.com
Wells Fargo Securities David Wong david.m.wong@wellsfargo.com
CRT Capital Group Douglas Freedman dfreedman@sterneageecrt.com
Raymond James J. Steven Smigie steve.smigie@raymondjames.com
Credit Suisse John Pitzer john.pitzer@credit-suisse.com
Jefferies Mark Lipacis mlipacis@jefferies.com
Pacific Crest Securities-KBCM Michael McConnell mmcconnell@pacific-crest.com
Oppenheimer Rick Schafer rick.schafer@opco.com
Nomura Research Romit Shah romit.shah@nomura.com
Deutsche Bank Research Ross Seymore ross.seymore@db.com
Bernstein Research Stacy A. Rasgon stacy.rasgon@bernstein.com
Cowen & Company Timothy Arcuri timothy.arcuri@cowen.com
Stifel Nicolaus Tore Svanberg tsvanberg@stifel.com
Mizuho Securities USA Vijay Rakesh vijay.rakesh@us.mizuho-sc.com
SunTrust Robinson Humphrey William Stein william.stein@suntrust.com
Daiwa Securities Co. Ltd. Yoko Yamada yoko.yamada@us.daiwacm.com

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Primary Input Data

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Derived Input Data

Derived Input

Label

2015 Value

2016
Value

Equational Form
Net Operating Profit Less Adjusted Taxes NOPLAT  2,738 3,110 NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)
Free Cash Flow FCF 3,717 4,083 FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS
Tax Shield TS 27 22 TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income
Invested Capital IC 13,675 14,167 IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital
Return on Invested Capital ROIC 20.03% 21.95% ROIC\,=\,\frac { NOPLAT }{ IC }
Net Investment NetInv (252) 1,447 NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation
Investment Rate IR -9.20% 46.53% IR\,=\,\frac {NetInv}{NOPLAT}
Weighted Average Cost of Capital
 WACCMarket 8.31% 16.99% WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)
 WACCBook  10.21%  9.95%
Enterprise value
 EVMarket 56,387 72,839 EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash
 EVBook   55,058  72,165
Long-Run Growth
 g = IR x ROIC
  -1.84%  10.21% Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
g = % \Delta GDP   2.50%   2.50%
Margin from Operations M  32.41%  35.78% M\,\,=\,\,\frac{EBIT}{SALES}
Depreciation/Amortization Rate D  21.19%  16.64% D\,\,=\,\,\frac{D+A}{EBITDA}

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Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form

Observed Value

Single-stage

multiple g solution

Two-stage valuation

model g solution
12/31/2015 12/31/2016 12/31/2015 12/31/2016 12/31/2015 12/31/2016

EV/SALES 

\frac {EV}{Sales} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)

  4.34  5.45  4.55%  15.79%  4.72% 16.16%

EV/EBITDA

\frac {EV}{EBITDA} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)

 10.55 12.69 4.55% 15.79% 4.72% 16.16%

EV/NOPLAT

\frac {EV}{NOPLAT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}

 20.59 23.42 4.55% 15.79% 4.72% 16.16%

EV/FCFOPS

\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

 15.17 17.84 4.55% 15.79% 4.72% 16.16%

EV/EBIT

\frac {EV}{EBIT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

 13.38 15.23 4.55% 15.79% 4.72% 16.16%

EV/IC

\frac {EV}{IC} \,= \,\frac{ROIC\,  -\,  g}{WACC\,-\,g}

 4.12 5.14 4.55% 15.79% 4.72% 16.16%

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