TE Connectivity plc (TEL) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-32.8%

$147.14

vs $219.12 price

Levered DCF

$171.24

After debt service

Piotroski score

9 / 9

Strong

Altman Z-score

5.08

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	19.62×	35.01×	14.54×	20.38×	14.68×	21.03×	-122.27×	16.32×
P/B	4.7×	5.12×	3.76×	3.37×	3.3×	4.47×	3.37×	2.98×
P/S	3.21×	3.77×	2.93×	2.43×	2.19×	3.19×	2.6×	2.34×
EV / EBITDA	12.87×	16.94×	13.56×	13.41×	11.02×	15.99×	27.81×	12.84×
Gross margin	36.2%	34.6%	34.4%	31.1%	31.5%	31.7%	30.1%	32.1%
Operating margin	20.1%	18.8%	17.6%	16.9%	17.6%	17.5%	14.6%	16.3%
Net margin	16.4%	10.8%	20.2%	11.9%	14.9%	15.2%	-2.0%	14.4%
Current ratio	1.73×	1.56×	1.61×	1.77×	1.57×	1.56×	1.57×	1.57×
Debt / equity	0.42×	0.52×	0.4×	0.42×	0.46×	0.46×	0.53×	0.38×
Interest coverage	32.19×	41.7×	39.94×	33.95×	43.42×	46.64×	37.04×	32.26×
Dividend yield	1.4%	1.2%	1.6%	1.9%	1.9%	1.4%	2.0%	1.9%
Payout ratio	26.7%	43.6%	23.8%	38.0%	28.2%	28.6%	-259.3%	31.5%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	24.0%	14.6%	25.8%	16.5%	22.5%	21.3%	-2.6%	18.3%
Return on invested capital	15.1%	8.8%	14.6%	12.6%	14.8%	14.2%	-5.4%	13.1%
Return on assets	12.2%	7.3%	14.0%	8.8%	11.7%	10.5%	-1.3%	9.8%
Free cash flow yield	5.3%	5.0%	6.0%	6.2%	4.8%	4.2%	4.5%	5.3%
Earnings yield	5.1%	2.9%	6.9%	4.9%	6.8%	4.8%	-0.8%	6.1%
Enterprise value	$67.8B	$69.8B	$50.1B	$42.1B	$39.5B	$51.2B	$35.7B	$34.5B
Net debt / EBITDA	0.75×	1.29×	0.99×	1.03×	1.08×	1.15×	3.13×	1.13×
Cash conversion cycle (days)	85	95	98	100	100	93	100	82