TE Connectivity Valuation
| TEL Stock | USD 140.48 1.00 0.71% |
At this time, the company appears to be fairly valued. TE Connectivity owns a latest Real Value of $145.85 per share. The recent price of the company is $140.48. Our model measures the value of TE Connectivity from examining the company fundamentals such as Current Valuation of 46.59 B, return on equity of 0.27, and Profit Margin of 0.21 % as well as evaluating its technical indicators and probability of bankruptcy. In general, most investors recommend picking up undervalued equities and discarding overvalued equities since, sooner or later, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting TE Connectivity's valuation include:
Price Book 3.3612 | Enterprise Value 46.6 B | Enterprise Value Ebitda 14.0417 | Price Sales 2.7554 | Forward PE 19.2308 |
Fairly Valued
Today
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.
Our valuation method for TE Connectivity is useful when determining the fair value of the TEL stock, which is usually 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 140.48 | Real 145.85 | Target 149.64 | Hype 140.7 | Naive 136.42 |
The real value of TEL Stock, also known as its intrinsic value, is the underlying worth of TE Connectivity Company, which is reflected in its stock price. It is based on TE Connectivity's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of TE Connectivity's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence TE Connectivity's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
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: 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. When choosing an evaluation method for TE Connectivity, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
TE Connectivity Investments |
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TEL Valuation Trend
Knowing TE Connectivity's actual value is paramount for traders to make sound investment determinations. TE Connectivity's real value is not only important for the investor to make better decisions but also for a more accurate overall view of TE Connectivity's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both TE Connectivity's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
TEL Market Cap
TE Connectivity is currently regarded as top stock in market capitalization category among related companies. Market capitalization of Information Technology industry is at this time estimated at about 72.35 Billion. TE Connectivity totals roughly 43.38 Billion in market capitalization claiming about 60% of equities under Information Technology industry.TE Connectivity Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining TE Connectivity's current stock value. Our valuation model uses many indicators to compare TE Connectivity value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across TE Connectivity competition to find correlations between indicators driving TE Connectivity's intrinsic value. More Info.TE Connectivity is currently regarded as top stock in price to earning category among related companies. It is currently regarded as top stock in price to book category among related companies fabricating about 0.09 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for TE Connectivity is roughly 11.76 . The value of Price To Book Ratio is estimated to slide to 2.05. Comparative valuation analysis is a catch-all model that can be used if you cannot value TE Connectivity by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for TE Connectivity's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the TE Connectivity's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates TE Connectivity's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in TE Connectivity and how it compares across the competition.
About TE Connectivity Valuation
The stock valuation mechanism determines the current worth of TE Connectivity on a weekly basis. We use both absolute as well as 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 its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of TE Connectivity's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. 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, relevant financial multiples and ratios, and then comparing them to TE Connectivity's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 4.5 B | 3.6 B | |
| Pretax Profit Margin | 0.17 | 0.18 | |
| Operating Profit Margin | 0.17 | 0.18 | |
| Net Profit Margin | 0.15 | 0.16 | |
| Gross Profit Margin | 0.32 | 0.25 |
8 Steps to conduct TE Connectivity's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates TE Connectivity's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct TE Connectivity's valuation analysis, follow these 8 steps:- Gather financial information: Obtain TE Connectivity's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine TE Connectivity's revenue streams: Identify TE Connectivity's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research TE Connectivity's industry and market trends, including the size of the market, growth rate, and competition.
- Establish TE Connectivity's growth potential: Evaluate TE Connectivity's management, business model, and growth potential.
- Determine TE Connectivity's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate TE Connectivity's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
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 will most likely fall to about 532.4 M. . Retained Earnings is expected to rise to about 15.6 B this year. Retained Earnings Total Equity is expected to rise to about 15.5 B this year
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 833.8 M | 532.4 M | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 0.28 | 0.30 | |
| Dividend Paid And Capex Coverage Ratio | (29.73) | (31.22) |
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
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, 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 Outstanding | 317 M | |
| Quarterly Earnings Growth Y O Y | 3.617 | |
| Forward Price Earnings | 19.2308 |
TE Connectivity Current Valuation Indicators
Valuation refers to the process of determining the present value of TE Connectivity and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value TEL we look at many different elements of the entity such as TEL's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. TE Connectivity's valuation analysis is also 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 tightly coupled with the direction of predictive economic indicators such as signals in income. For more information on how to buy TEL Stock please use our How to buy in TEL Stock guide.Note that the TE Connectivity information on this page should be used as a complementary analysis to other TE Connectivity's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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When running TE Connectivity's price analysis, check to measure TE Connectivity's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy TE Connectivity is operating at the current time. Most of TE Connectivity's value examination focuses on studying past and present price action to predict the probability of TE Connectivity's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move TE Connectivity's price. Additionally, you may evaluate how the addition of TE Connectivity to your portfolios can decrease your overall portfolio volatility.
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Is TE Connectivity's industry 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. All the valuation information about TE Connectivity listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 3.617 | Dividend Share 2.33 | Earnings Share 10.53 | Revenue Per Share 51.113 | Quarterly Revenue Growth (0) |
The market value of TE Connectivity is measured differently than its book value, which is the value of TEL that is recorded on the company's balance sheet. Investors also form their own opinion of TE Connectivity's value that differs from its market value or its book value, called intrinsic value, which is TE Connectivity's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because TE Connectivity's market value can be influenced by many factors that don't directly affect TE Connectivity's underlying business (such as a pandemic or basic market pessimism), market value can vary widely 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. However, TE Connectivity's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.