TE Connectivity plc (TEL)

Wholesale-Electronic Parts & Equipment, NEC

Latest Price

$203.37

TTM P/E

19.92

Normalized P/E

25.19

Div Yield

1.43%

Book Value

45.21

P/B Ratio

4.50

Valuation metrics

EPS: $6.16

Book value / share: $42.58

Formula: √(22.5 × EPS × BVPS)

Graham Number

$76.82

62% downside

Norm. op. income: $2.4B (median of 7yr)

Tax rate: 14%

Discount rate: 10%

Growth assumption: zero (EPV is a no-growth value)

Earnings Power Value

$55.47

73% downside

Base FCF: $2.4B (median of recent 5yr)

Growth: 16%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$284.18

+40% upside

EPS: $6.16

Target P/E: 25×

Formula: EPS × P/E

P/E Fair Value

$154.00

24% downside