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If you are wondering whether TE Connectivity’s current share price reflects its true worth, this article walks through the key numbers that matter for valuation.
TE Connectivity’s share price closed at US$222.78, with returns of a 0.5% decline over 7 days, a 4.5% decline over 30 days, a 4.5% decline year to date, but a 52.9% gain over 1 year, 75.0% over 3 years, and 88.6% over 5 years, which may lead some investors to reassess both upside potential and risk.
Recent coverage has focused on TE Connectivity as a key supplier of connectivity and sensor solutions for sectors such as automotive, industrial equipment, and communications. This helps frame how investors think about its long term demand. News flow has also highlighted how the company is positioned within broader themes like vehicle electrification and factory automation, both of which often influence sentiment around its long term earnings potential.
Our valuation model currently gives TE Connectivity a score of 2 out of 6, based on how many checks suggest the stock looks undervalued. Next we will walk through the main valuation approaches before finishing with a more complete way to think about the company’s value.
TE Connectivity scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
A Discounted Cash Flow, or DCF, model estimates what a company could be worth by projecting its future cash flows and then discounting those back to today using a required rate of return. It tries to answer what those future dollars are worth in present terms.
For TE Connectivity, the model used is a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month Free Cash Flow is about $3.25b, and analysts plus extrapolated estimates point to Free Cash Flow of $3.73b by 2030, with intermediate projections between 2026 and 2035 ranging roughly from $3.32b to $3.97b before discounting. Simply Wall St extrapolates beyond the explicit analyst horizon to build a 10 year path of cash flows in dollars.
After discounting these projected cash flows, the model arrives at an estimated intrinsic value of about $178.15 per share, compared with the recent share price of $222.78. That implies the stock screens as roughly 25.1% overvalued on this DCF view.
Result: OVERVALUED
Our Discounted Cash Flow (DCF) analysis suggests TE Connectivity may be overvalued by 25.1%. Discover 875 undervalued stocks or create your own screener to find better value opportunities.
Story Continues
TEL Discounted Cash Flow as at Feb 2026
For a profitable company like TE Connectivity, the P/E ratio is a useful shorthand for how much investors are paying for each dollar of earnings. A higher or lower P/E often reflects what the market is assuming about future growth and risk, with faster growth or lower perceived risk usually linked to higher “normal” multiples.
TE Connectivity currently trades on a P/E of 31.64x. That sits above the Electronic industry average P/E of 26.61x, while the peer group used here shows an average P/E of 47.27x. To go a step further, Simply Wall St also calculates a proprietary “Fair Ratio”. This estimates what P/E might make sense after considering factors such as the company’s earnings growth profile, profit margins, industry, market cap and stock specific risks.
For TE Connectivity, this Fair Ratio is 30.21x, which is slightly below the current 31.64x. Because the Fair Ratio incorporates company specific fundamentals rather than relying only on broad industry or peer comparisons, it can give a more tailored view of value. On this basis, TE Connectivity screens as somewhat expensive on earnings.
Result: OVERVALUED
NYSE:TEL P/E Ratio as at Feb 2026
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Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which simply means putting your own clear story about TE Connectivity behind the numbers you see on the screen.
A Narrative is your view of what the company does, where you think it could go, and how that might show up in future revenue, earnings and margins, all linked to a fair value that you can compare with today’s price.
On Simply Wall St, Narratives sit in the Community page and are designed to be quick to set up, easy to adjust, and automatically updated when new information such as news or earnings is reflected in the underlying estimates. This allows you to always see how your story compares with the current market price.
For TE Connectivity, one investor might build a Narrative that focuses on long term demand from vehicle electrification and factory automation, while another might set far more cautious assumptions about growth and profitability. Their fair values could therefore sit at very different levels and lead to different views about whether the current US$222.78 price looks attractive or stretched.
Do you think there’s more to the story for TE Connectivity? Head over to our Community to see what others are saying!
NYSE:TEL 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include TEL.
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