TEL Valuation

TE Connectivity PLC

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200.300

-1.25(-0.620%)1D

Overview
Forecast
Valuation
Earnings

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 Undervalued zone, suggesting that its current forward PE ratio of 22.06 is considered Undervalued compared with the five-year average of 18.77. The fair price of TE Connectivity PLC (TEL) is between 210.18 to 235.53 according to relative valuation methord. Compared to the current price of 201.55 USD , TE Connectivity PLC is Undervalued By 4.11%.

Relative Value

Fair Zone

210.18-235.53

Current Price：201.55

4.11%

Undervalued

21.86

Trailing

Forward

14.37

EV/EBITDA

TE Connectivity PLC. (TEL) has a current EV/EBITDA of 14.37. The 5-year average EV/EBITDA is 12.56. The thresholds are as follows: Strongly Undervalued below 10.27, Undervalued between 10.27 and 11.41, Fairly Valued between 13.70 and 11.41, Overvalued between 13.70 and 14.85, and Strongly Overvalued above 14.85. The current Forward EV/EBITDA of 14.37 falls within the Overvalued range.

18.01

EV/EBIT

TE Connectivity PLC. (TEL) has a current EV/EBIT of 18.01. The 5-year average EV/EBIT is 15.98. The thresholds are as follows: Strongly Undervalued below 12.86, Undervalued between 12.86 and 14.42, Fairly Valued between 17.54 and 14.42, Overvalued between 17.54 and 19.10, and Strongly Overvalued above 19.10. The current Forward EV/EBIT of 18.01 falls within the Overvalued range.

3.30

TE Connectivity PLC. (TEL) has a current PS of 3.30. The 5-year average PS is 2.70. The thresholds are as follows: Strongly Undervalued below 2.15, Undervalued between 2.15 and 2.43, Fairly Valued between 2.97 and 2.43, Overvalued between 2.97 and 3.25, and Strongly Overvalued above 3.25. The current Forward PS of 3.30 falls within the Strongly Overvalued range.

15.70

P/OCF

TE Connectivity PLC. (TEL) has a current P/OCF of 15.70. The 5-year average P/OCF is 14.69. The thresholds are as follows: Strongly Undervalued below 10.33, Undervalued between 10.33 and 12.51, Fairly Valued between 16.87 and 12.51, Overvalued between 16.87 and 19.05, and Strongly Overvalued above 19.05. The current Forward P/OCF of 15.70 falls within the Historic Trend Line -Fairly Valued range.

20.87

P/FCF

TE Connectivity PLC. (TEL) has a current P/FCF of 20.87. The 5-year average P/FCF is 20.01. The thresholds are as follows: Strongly Undervalued below 12.73, Undervalued between 12.73 and 16.37, Fairly Valued between 23.65 and 16.37, Overvalued between 23.65 and 27.30, and Strongly Overvalued above 27.30. The current Forward P/FCF of 20.87 falls within the Historic Trend Line -Fairly Valued range.

TE Connectivity PLC (TEL) has a current Price-to-Book (P/B) ratio of 4.86. Compared to its 3-year average P/B ratio of 3.62 , the current P/B ratio is approximately 34.27% higher. Relative to its 5-year average P/B ratio of 3.87, the current P/B ratio is about 25.46% higher. TE Connectivity PLC (TEL) has a Forward Free Cash Flow (FCF) yield of approximately 4.80%. Compared to its 3-year average FCF yield of 5.57%, the current FCF yield is approximately -13.94% lower. Relative to its 5-year average FCF yield of 4.96% , the current FCF yield is about -3.39% lower.

4.82

P/B

Median3y

3.62

Median5y

3.87

4.80

FCF Yield

Median3y

5.57

Median5y

4.96

Competitors Valuation Multiple

The average P/S ratio for TEL's competitors is 11.36, providing a benchmark for relative valuation. TE Connectivity PLC Corp (TEL) exhibits a P/S ratio of 3.30, which is -71.00% above the industry average. Given its robust revenue growth of 13.95%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

NXP Semiconductors NV

Marvell Technology Inc

Monolithic Power Systems Inc

Microchip Technology Inc

Performance Decomposition

Market capitalization of TEL increased by 30.40% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 35.13 to 41.71.

The secondary factor is the Revenue Growth, contributed 13.95%to the performance.

Overall, the performance of TEL in the past 1 year is driven by P/E Change. Which is more unsustainable.

13.95%

3.98B → 4.53B

Revenue Growth

-2.29%

14.40 → 14.07

Margin Expansion

18.74%

35.13 → 41.71

P/E Change

30.40%