TE Connectivity Valuation

Q: What is the Fair Price of TEL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

TEL ($145.45) is trading below our estimate of [[fair value]] ($182.27)

Is TEL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of TEL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TEL ($145.45) is trading below our estimate of fair value ($182.27)

Significantly Below Fair Value: TEL is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TEL?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for TEL. This is calculated by dividing TEL's market cap by their current preferred multiple.
What is TEL's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	US$44.20b

TEL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3x
Enterprise Value/EBITDA	12.8x
PEG Ratio	-1.9x

Price to Earnings Ratio vs Peers

How does TEL's PE Ratio compare to its peers?

The above table shows the PE ratio for TEL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	23.4x
JBL Jabil	9.9x	-19.8%	US$13.8b
FLEX Flex	20.4x	21.7%	US$13.3b
FN Fabrinet	29.6x	14.5%	US$8.8b
PLXS Plexus	33.4x	26.2%	US$3.7b
TEL TE Connectivity	12.7x	-6.9%	US$44.2b

Price-To-Earnings vs Peers: TEL is good value based on its Price-To-Earnings Ratio (12.7x) compared to the peer average (23.4x).

Price to Earnings Ratio vs Industry

How does TEL's PE Ratio compare vs other companies in the US Electronic Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	14.3%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	14.3%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: TEL is good value based on its Price-To-Earnings Ratio (12.7x) compared to the US Electronic industry average (24.1x).

Price to Earnings Ratio vs Fair Ratio

What is TEL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TEL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.7x
Fair PE Ratio	18.4x

Price-To-Earnings vs Fair Ratio: TEL is good value based on its Price-To-Earnings Ratio (12.7x) compared to the estimated Fair Price-To-Earnings Ratio (18.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.