TE Connectivity Valuation

TEL Stock  USD 234.73  2.33  1.00%   
At this time, the company appears to be undervalued. TE Connectivity owns a latest Real Value of $253.28 per share. The recent price of the company is $234.73. Our model measures the value of TE Connectivity from examining the company fundamentals such as Current Valuation of 73.76 B, profit margin of 0.11 %, and Return On Equity of 0.16 as well as evaluating its technical indicators and probability of bankruptcy. Key fundamental drivers impacting TE Connectivity's valuation include:
Price Book
5.3366
Enterprise Value
73.8 B
Enterprise Value Ebitda
16.4982
Price Sales
3.8078
Forward PE
21.8341
Undervalued
Today
234.73
Please note that TE Connectivity's price fluctuation is very steady at this time. Calculation of the real value of TE Connectivity is based on 3 months time horizon. Increasing TE Connectivity's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the TEL stock is determined by what a typical buyer is willing to pay for full or partial control of TE Connectivity. Since TE Connectivity is currently traded on the exchange, buyers and sellers on that exchange determine the market value of TEL Stock. However, TE Connectivity's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  234.73 Real  253.28 Target  275.37 Hype  236.54 Naive  249.02
The intrinsic value of TE Connectivity's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence TE Connectivity's stock price.
211.69
Downside
253.28
Real Value
255.28
Upside
Estimating the potential upside or downside of TE Connectivity helps investors to forecast how TEL stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of TE Connectivity more accurately as focusing exclusively on TE Connectivity's fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
2.652.672.79
Details
Hype
Prediction
LowEstimatedHigh
234.54236.54238.54
Details
Potential
Annual Dividend
LowForecastedHigh
1.961.992.02
Details
20 Analysts
Consensus
LowTarget PriceHigh
250.59275.37305.66
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use TE Connectivity's intrinsic value based on its ongoing forecasts of TE Connectivity's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against TE Connectivity's closest peers.

TE Connectivity Cash

1.42 Billion

TEL Revenue by Product

TE Connectivity Total Value Analysis

TE Connectivity is at this time forecasted to have company total value of 73.76 B with market capitalization of 68.9 B, debt of 6.55 B, and cash on hands of 1.25 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the TE Connectivity fundamentals before making security assessment based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
73.76 B
68.9 B
6.55 B
1.25 B

TE Connectivity Investor Information

About 92.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.38. TE Connectivity recorded earning per share (EPS) of 6.95. The entity last dividend was issued on the 20th of February 2026. The firm had 1:12 split on the 25th of June 2009. Based on the key measurements obtained from TE Connectivity's financial statements, TE Connectivity is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in March.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.0960.176
Way Down
Pretty Stable

TE Connectivity Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. TE Connectivity has an asset utilization ratio of 68.14 percent. This suggests that the Company is making $0.68 for each dollar of assets. An increasing asset utilization means that TE Connectivity is more efficient with each dollar of assets it utilizes for everyday operations.
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes

TE Connectivity Profitability Analysis

Based on the key profitability measurements obtained from TE Connectivity's financial statements, TE Connectivity is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in March. Profitability indicators assess TE Connectivity's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2006-03-31
Previous Quarter
663 M
Current Value
750 M
Quarterly Volatility
551.2 M
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
At this time, TE Connectivity's Pretax Profit Margin is quite stable compared to the past year. Net Profit Margin is expected to rise to 0.16 this year, although the value of Gross Profit will most likely fall to about 3.7 B.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.250.3151
Significantly Down
Very volatile
Net Profit Margin0.160.1491
Notably Up
Slightly volatile
Operating Profit Margin0.0960.176
Way Down
Pretty Stable
Pretax Profit Margin0.180.1679
Notably Up
Slightly volatile
Return On Assets0.120.1168
Fairly Up
Slightly volatile
Return On Equity0.240.2248
Notably Up
Slightly volatile
For TE Connectivity profitability analysis, we use financial ratios and fundamental drivers that measure the ability of TE Connectivity to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well TE Connectivity utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between TE Connectivity's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of TE Connectivity over time as well as its relative position and ranking within its peers.

TE Connectivity Earnings per Share Projection vs Actual

The next projected EPS of TE Connectivity is estimated to be 2.67 with future projections ranging from a low of 2.6452 to a high of 2.79. TE Connectivity's most recent 12-month trailing earnings per share (EPS TTM) is at 6.95. Please be aware that the consensus of earnings estimates for TE Connectivity is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
TE Connectivity is projected to generate 2.67 in earnings per share on the 31st of March 2026. TE Connectivity earnings estimates show analyst consensus about projected TE Connectivity EPS (Earning Per Share). It derives the highest and the lowest estimates based on TE Connectivity's historical volatility. Many public companies, such as TE Connectivity, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

TE Connectivity Earnings Estimation Breakdown

The calculation of TE Connectivity's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of TE Connectivity is estimated to be 2.67 with the future projection ranging from a low of 2.6452 to a high of 2.79. Please be aware that this consensus of annual earnings estimates for TE Connectivity is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
2.72
2.65
Lowest
Expected EPS
2.67
2.79
Highest

TE Connectivity Earnings Projection Consensus

Suppose the current estimates of TE Connectivity's value are higher than the current market price of the TE Connectivity stock. In this case, investors may conclude that TE Connectivity is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and TE Connectivity's stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 31st of March 2026Current EPS (TTM)
1991.92%
2.72
2.67
6.95

TE Connectivity Ownership Allocation

TE Connectivity secures a total of 293.43 Million outstanding shares. The majority of TE Connectivity outstanding shares are owned by institutions. These other corporate entities are usually referred to as non-private investors looking to take positions in TE Connectivity to benefit from reduced commissions. Hence, outside corporations are subject to a different set of regulations than regular investors in TE Connectivity. Please pay attention to any change in the institutional holdings of TE Connectivity as this could imply that something significant has changed or is about to change at the company. Please note that on October 5, 2025, Representative Sheri Biggs of US Congress acquired $15k to $50k worth of TE Connectivity's common stock.

TE Connectivity Profitability Analysis

The company reported the last year's revenue of 17.09 B. Total Income to common stockholders was 1.84 B with profit before taxes, overhead, and interest of 6.46 B.

TE Connectivity Past Distributions to stockholders

About TE Connectivity Valuation

We use absolute and relative valuation methodologies to arrive at the intrinsic value of TE Connectivity. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of TE Connectivity based exclusively on its fundamental and basic technical indicators. By analyzing TE Connectivity's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of TE Connectivity's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of TE Connectivity. We calculate exposure to TE Connectivity's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of TE Connectivity's related companies.
Last ReportedProjected for Next Year
Gross Profit5.3 B3.7 B
Pretax Profit Margin 0.17  0.18 
Operating Profit Margin 0.18  0.10 
Net Profit Margin 0.15  0.16 
Gross Profit Margin 0.32  0.25 
TE Connectivity's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether TE Connectivity's value is low or high relative to the company's performance and growth projections. Determining the market value of TE Connectivity can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of TE Connectivity represents a small ownership stake in the entity. As a stockholder of TEL, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

TE Connectivity Dividends Analysis For Valuation

At this time, TE Connectivity's Dividend Yield is quite stable compared to the past year. Dividend Payout Ratio is expected to rise to 0.30 this year, although the value of Dividends Paid is projected to rise to (686.6 M). . Retained Earnings is expected to rise to about 16.8 B this year. Retained Earnings Total Equity is expected to rise to about 15.5 B this year
Last ReportedProjected for Next Year
Dividends Paid-722.7 M-686.6 M
Dividend Yield 0.02  0.02 
Dividend Payout Ratio 0.28  0.30 
Dividend Paid And Capex Coverage Ratio 1.70  1.51 
There are various types of dividends TE Connectivity can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of TEL shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from TE Connectivity directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When TEL pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of TE Connectivity by the value of the dividends paid out.

TE Connectivity Growth Indicators

Investing in growth stocks can be very risky. If the company such as TE Connectivity does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding299 M
Quarterly Earnings Growth Y O Y0.444
Forward Price Earnings21.8341

TE Connectivity Current Valuation Indicators

TE Connectivity's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final TE Connectivity's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as TE Connectivity, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use TE Connectivity's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes TE Connectivity's worth.
When determining whether TE Connectivity is a strong investment it is important to analyze TE Connectivity's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact TE Connectivity's future performance. For an informed investment choice regarding TEL Stock, refer to the following important reports:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in TE Connectivity. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in discontinued.
For more information on how to buy TEL Stock please use our How to buy in TEL Stock guide.
You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Is Electronic Equipment, Instruments & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of TE Connectivity. If investors know TEL will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. Comprehensive TE Connectivity assessment requires weighing all these inputs, though not all factors influence outcomes equally.
Quarterly Earnings Growth
0.444
Dividend Share
2.78
Earnings Share
6.95
Revenue Per Share
61.183
Quarterly Revenue Growth
0.217
Investors evaluate TE Connectivity using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating TE Connectivity's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. External factors like market trends, sector rotation, and investor psychology can cause TE Connectivity's market price to deviate significantly from intrinsic value.
Please note, there is a significant difference between TE Connectivity's value and its price as these two are different measures arrived at by different means. Investors typically determine if TE Connectivity is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. Conversely, TE Connectivity's market price signifies the transaction level at which participants voluntarily complete trades.