TE Connectivity Ltd. New Switzerland Registered Shares (TEL) Company Bio
TE Connectivity designs and manufactures connectivity and sensors solutions. It operates through four segments: Transportation Solutions, Industrial Solutions, Network Solutions, and Consumer Solutions. The company was founded in 2007 and is is based in Schaffhausen, Switzerland.
TEL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for TE Connectivity Ltd. To summarize, we found that TE Connectivity Ltd ranked in the 46th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 23.17%. As for the metrics that stood out in our discounted cash flow analysis of TE Connectivity Ltd, consider:
TEL's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 37.58% of tickers in our DCF set.
TE Connectivity Ltd's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 37.75. This coverage rate is greater than that of 91.18% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 7. This value is greater than just 18.19% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
NXPI, TTGT, NVDA, NVT, and DBD can be thought of as valuation peers to TEL, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.