TEL Relative Valuation
TEL's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, TEL is overvalued; if below, it's undervalued.
Historical Valuation
TE Connectivity PLC (TEL) is now in the Overvalued zone, suggesting that its current forward PE ratio of 21.84 is considered Overvalued compared with the five-year average of 19.02. The fair price of TE Connectivity PLC (TEL) is between 200.66 to 231.68 according to relative valuation methord. Compared to the current price of 233.41 USD , TE Connectivity PLC is Overvalued By 0.75%.
Relative Value
Fair Zone
200.66-231.68
Current Price：233.41
0.75%
Overvalued
21.84
PE
1Y
3Y
5Y
Trailing
Forward
14.42
EV/EBITDA
TE Connectivity PLC. (TEL) has a current EV/EBITDA of 14.42. The 5-year average EV/EBITDA is 12.70. The thresholds are as follows: Strongly Undervalued below 10.32, Undervalued between 10.32 and 11.51, Fairly Valued between 13.89 and 11.51, Overvalued between 13.89 and 15.08, and Strongly Overvalued above 15.08. The current Forward EV/EBITDA of 14.42 falls within the Overvalued range.
17.56
EV/EBIT
TE Connectivity PLC. (TEL) has a current EV/EBIT of 17.56. The 5-year average EV/EBIT is 16.08. The thresholds are as follows: Strongly Undervalued below 13.03, Undervalued between 13.03 and 14.56, Fairly Valued between 17.61 and 14.56, Overvalued between 17.61 and 19.13, and Strongly Overvalued above 19.13. The current Forward EV/EBIT of 17.56 falls within the Historic Trend Line -Fairly Valued range.
3.54
PS
TE Connectivity PLC. (TEL) has a current PS of 3.54. The 5-year average PS is 2.76. The thresholds are as follows: Strongly Undervalued below 2.12, Undervalued between 2.12 and 2.44, Fairly Valued between 3.08 and 2.44, Overvalued between 3.08 and 3.40, and Strongly Overvalued above 3.40. The current Forward PS of 3.54 falls within the Strongly Overvalued range.
17.43
P/OCF
TE Connectivity PLC. (TEL) has a current P/OCF of 17.43. The 5-year average P/OCF is 14.80. The thresholds are as follows: Strongly Undervalued below 10.49, Undervalued between 10.49 and 12.65, Fairly Valued between 16.95 and 12.65, Overvalued between 16.95 and 19.10, and Strongly Overvalued above 19.10. The current Forward P/OCF of 17.43 falls within the Overvalued range.
22.92
P/FCF
TE Connectivity PLC. (TEL) has a current P/FCF of 22.92. The 5-year average P/FCF is 20.26. The thresholds are as follows: Strongly Undervalued below 13.06, Undervalued between 13.06 and 16.66, Fairly Valued between 23.86 and 16.66, Overvalued between 23.86 and 27.46, and Strongly Overvalued above 27.46. The current Forward P/FCF of 22.92 falls within the Historic Trend Line -Fairly Valued range.
TE Connectivity PLC (TEL) has a current Price-to-Book (P/B) ratio of 5.46. Compared to its 3-year average P/B ratio of 3.78 , the current P/B ratio is approximately 44.42% higher. Relative to its 5-year average P/B ratio of 3.97, the current P/B ratio is about 37.70% higher. TE Connectivity PLC (TEL) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 5.62%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.99% , the current FCF yield is about -100.00% lower.
5.46
P/B
Median3y
3.78
Median5y
3.97
4.72
FCF Yield
Median3y
5.62
Median5y
4.99
Competitors Valuation Multiple
The average P/S ratio for TEL's competitors is 1.16, providing a benchmark for relative valuation. TE Connectivity PLC Corp (TEL) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 16.74%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of TEL increased by 63.26% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 6.78 to 13.98.
The secondary factor is the Revenue Growth, contributed 16.74%to the performance.
Overall, the performance of TEL in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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