TE Connectivity plc

NYSE:TEL Stock Report

Market Cap: US$43.3b

TE Connectivity Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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.

Discounted Cash Flow
Simply Wall St
US$153.98
Fair Value
6.0% undervalued intrinsic discount
18
Number of Analysts

Below Fair Value: TEL ($144.77) is trading below our estimate of fair value ($153.98)

Significantly Below Fair Value: TEL is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

Key metric: As TEL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for TEL. This is calculated by dividing TEL's market cap by their current earnings.
What is TEL's PE Ratio?
PE Ratio22.5x
EarningsUS$1.92b
Market CapUS$43.28b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.3x
JBL Jabil
13.7x-13.5%US$17.5b
FLEX Flex
15.9x9.6%US$15.5b
FN Fabrinet
23x12.1%US$8.2b
SANM Sanmina
20.6x18.5%US$4.5b
TEL TE Connectivity
22.5x11.7%US$43.3b

Price-To-Earnings vs Peers: TEL is expensive based on its Price-To-Earnings Ratio (22.5x) compared to the peer average (18.3x).

Price to Earnings Ratio vs Industry

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

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SHMD SCHMID Group
2.6xn/aUS$85.52m
DSWL Deswell Industries
3.6xn/aUS$38.09m
SGE Strong Global Entertainment
3.8xn/aUS$12.27m
SMX SMX (Security Matters)
0.7xn/aUS$1.03m
TEL 22.5xIndustry Avg. 24.5xNo. of Companies11PE01632486480+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TEL is good value based on its Price-To-Earnings Ratio (22.5x) compared to the US Electronic industry average (24.5x).

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 Ratio22.5x
Fair PE Ratio26.3x

Price-To-Earnings vs Fair Ratio: TEL is good value based on its Price-To-Earnings Ratio (22.5x) compared to the estimated Fair Price-To-Earnings Ratio (26.3x).

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 TEL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$144.77
US$170.73
+17.9%
8.2%US$190.00US$145.00n/a18
Jan ’26US$142.97
US$166.97
+16.8%
8.7%US$190.00US$137.00n/a19
Dec ’25US$151.12
US$167.07
+10.6%
8.7%US$190.00US$137.00n/a19
Nov ’25US$150.02
US$167.02
+11.3%
8.7%US$190.00US$137.00n/a19
Oct ’25US$147.46
US$169.52
+15.0%
7.6%US$190.00US$145.00n/a18
Sep ’25US$153.60
US$169.20
+10.2%
7.7%US$190.00US$145.00n/a17
Aug ’25US$150.31
US$168.87
+12.3%
7.7%US$190.00US$145.00n/a17
Jul ’25US$148.47
US$163.68
+10.2%
7.7%US$186.00US$135.00n/a16
Jun ’25US$149.70
US$163.80
+9.4%
7.6%US$186.00US$135.00n/a16
May ’25US$139.45
US$161.31
+15.7%
8.0%US$186.00US$135.00n/a16
Apr ’25US$143.96
US$158.87
+10.4%
7.2%US$175.00US$135.00n/a15
Mar ’25US$143.74
US$158.87
+10.5%
7.2%US$175.00US$135.00n/a15
Feb ’25US$142.25
US$158.67
+11.5%
7.3%US$175.00US$135.00US$147.9715
Jan ’25US$140.50
US$149.36
+6.3%
7.2%US$175.00US$135.00US$142.9714
Dec ’24US$132.00
US$148.50
+12.5%
7.7%US$175.00US$135.00US$151.1212
Nov ’24US$122.86
US$149.50
+21.7%
7.3%US$175.00US$135.00US$150.0212
Oct ’24US$123.53
US$147.67
+19.5%
9.4%US$168.00US$115.00US$147.4612
Sep ’24US$133.27
US$147.67
+10.8%
9.4%US$168.00US$115.00US$153.6012
Aug ’24US$143.62
US$147.50
+2.7%
9.4%US$168.00US$115.00US$150.3112
Jul ’24US$140.16
US$140.17
+0.005%
9.4%US$160.00US$115.00US$148.4712
Jun ’24US$122.55
US$139.17
+13.6%
9.2%US$160.00US$115.00US$149.7012
May ’24US$123.20
US$137.33
+11.5%
9.1%US$160.00US$115.00US$139.4512
Apr ’24US$131.15
US$138.00
+5.2%
11.4%US$171.00US$115.00US$143.9613
Mar ’24US$127.83
US$137.43
+7.5%
11.1%US$171.00US$115.00US$143.7414
Feb ’24US$130.20
US$136.27
+4.7%
10.8%US$171.00US$115.00US$142.2515
Analyst Price Target
Consensus Narrative from 18 Analysts
US$170.73
Fair Value
15.2% undervalued intrinsic discount
18
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/04 23:34
End of Day Share Price 2025/02/04 00:00
Earnings2024/12/27
Annual Earnings2024/09/27

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

TE Connectivity plc is covered by 36 analysts. 20 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Luke JunkBaird
Wamsi MohanBofA Global Research
Shreya GheewalaCFRA Equity Research