We’ve recently updated our valuation analysis.

Sensata Technologies Holding Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

ST 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/Revenue2.5x
Enterprise Value/EBITDA11.9x
PEG Ratio1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ST vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average33.3x
NVT nVent Electric
21.7x5.6%US$6.7b
AYI Acuity Brands
15.8x2.5%US$6.1b
VRT Vertiv Holdings Co
72x36.9%US$5.2b
RRX Regal Rexnord
23.6x19.2%US$8.6b
ST Sensata Technologies Holding
22.4x23.0%US$6.9b

Price-To-Earnings vs Peers: ST is good value based on its Price-To-Earnings Ratio (22.4x) compared to the peer average (33.3x).


Price to Earnings Ratio vs Industry

How does ST's PE Ratio compare vs other companies in the US Electrical Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.5%
n/an/an/a

Price-To-Earnings vs Industry: ST is expensive based on its Price-To-Earnings Ratio (22.4x) compared to the US Electrical industry average (18.8x)


Price to Earnings Ratio vs Fair Ratio

What is ST'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.

ST PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.4x
Fair PE Ratio25.2x

Price-To-Earnings vs Fair Ratio: ST is good value based on its Price-To-Earnings Ratio (22.4x) compared to the estimated Fair Price-To-Earnings Ratio (25.2x).


Share Price vs Fair Value

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

Below Fair Value: ST ($45.26) is trading below our estimate of fair value ($74.48)

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


Analyst Price Targets

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

The above table shows the analyst ST forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$45.26
US$52.75
+16.5%
16.7%US$71.00US$41.00n/a16
Nov ’23US$40.54
US$51.50
+27.0%
17.6%US$71.00US$41.00n/a16
Oct ’23US$37.28
US$53.44
+43.3%
18.5%US$79.00US$42.00n/a16
Sep ’23US$40.11
US$54.24
+35.2%
18.0%US$79.00US$42.00n/a17
Aug ’23US$44.51
US$53.76
+20.8%
18.9%US$79.00US$42.00n/a17
Jul ’23US$40.59
US$61.95
+52.6%
15.8%US$93.00US$50.00n/a19
Jun ’23US$47.48
US$62.26
+31.1%
15.3%US$93.00US$50.00n/a19
May ’23US$45.41
US$63.16
+39.1%
15.5%US$93.00US$50.00n/a19
Apr ’23US$50.56
US$68.68
+35.8%
12.2%US$94.00US$55.00n/a19
Mar ’23US$56.83
US$70.26
+23.6%
14.0%US$104.00US$60.00n/a19
Feb ’23US$57.27
US$70.47
+23.1%
14.2%US$104.00US$60.00n/a19
Jan ’23US$61.69
US$68.53
+11.1%
9.9%US$88.00US$60.00n/a19
Dec ’22US$55.27
US$68.68
+24.3%
9.6%US$88.00US$60.00n/a19
Nov ’22US$56.54
US$68.74
+21.6%
9.5%US$88.00US$60.00US$40.5419
Oct ’22US$56.08
US$69.16
+23.3%
10.2%US$91.00US$60.00US$37.2819
Sep ’22US$58.93
US$69.67
+18.2%
10.2%US$91.00US$60.00US$40.1118
Aug ’22US$58.62
US$69.67
+18.8%
10.2%US$91.00US$60.00US$44.5118
Jul ’22US$58.50
US$69.05
+18.0%
6.3%US$77.00US$60.00US$40.5919
Jun ’22US$59.99
US$69.05
+15.1%
6.3%US$77.00US$60.00US$47.4819
May ’22US$57.74
US$68.79
+19.1%
6.5%US$77.00US$60.00US$45.4119
Apr ’22US$58.57
US$65.05
+11.1%
9.6%US$75.00US$48.00US$50.5619
Mar ’22US$59.31
US$62.74
+5.8%
9.7%US$73.00US$48.00US$56.8319
Feb ’22US$55.39
US$60.84
+9.8%
10.3%US$73.00US$48.00US$57.2719
Jan ’22US$52.74
US$55.30
+4.9%
8.9%US$67.00US$48.00US$61.6920
Dec ’21US$49.00
US$53.25
+8.7%
7.2%US$63.00US$47.00US$55.2720
Nov ’21US$43.71
US$53.25
+21.8%
7.2%US$63.00US$47.00US$56.5420

Analyst Forecast: Target price is less than 20% higher than the current share price.


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