TEL · Intrinsic value
Is TE Connectivity plc (TEL) overvalued or undervalued?
As of Oct 19, 2026, TickerWorth's valuation lenses put TE Connectivity plc (TEL) at $83.00 – $420.04, too broad a range to say where the delayed market price of $212.64 sits in it, so we do not call it over- or undervalued. It is a model estimate, and every input behind it is sourced below.
Model by Miraaj Patel · generated from a hand-researched model · Updated Oct 19, 2026 · How these pages are made
What is TEL worth?
- Fair-value range
- $83.00 – $420.04
- Market price
- $212.64
- Gap to fair value
- —
- Verdict
- Too wide to call
Reverse DCF: Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast.
What is TEL's TickerWorth Score?
Middle of the pack — real strengths and real weaknesses
Compared with Technology companies in US
Its strongest point: looks cheap on the numbers. Its weakest: growth is slow or negative.
- Value · 68 of 100
Cheaper than 68% of Technology companies in US
- Price vs worth · 50 of 100
- Quality · 56 of 100
More profitable than 56% of Technology companies in US
- Financial health · 43 of 100
Financially stronger than 43% of Technology companies in US
- Growth · 30 of 100
Growing faster than 30% of Technology companies in US
- Momentum · 41 of 100
Outperformed 41% of Technology companies in US over the past year
Confidence: Medium confidence · Scored
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Why TEL gets a range, not one number
At a recent price of $212.64, TE Connectivity plc (TEL) sits inside a range too wide to call either way: our valuation lenses put the business somewhere between $83.00 and $420.04 per share. They disagree too widely for us to state a single fair value. We publish the range rather than a midpoint because a number that precise would claim more than the methods can support. This is an educational model, not a price target or a recommendation.
Read the full reasoning
The valuation discounts TE Connectivity plc's projected free cash flows at a weighted-average cost of capital (WACC) of 10.4%, with a long-run terminal growth rate of 2.5%. About 70% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — TEL would need sustained revenue growth of more than 25%/yr to justify today's price, against about 8.1% a year compounded in our base case. We don't quote a precise figure here, because past about 25% a year the reverse-DCF stops being informative: it solves for revenue growth alone, holding margins, capital intensity and the forecast horizon fixed, so a price well above our fair value has nowhere to go but growth. The honest reading is that the price implies growth this model can't reconcile — not that we forecast it.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, TEL's modeled DCF value ranges from about $83.81 to $165.34 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what TE Connectivity plc would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of TEL's intrinsic value. Figures update as new filings and prices come in.
Every input behind TEL's DCF
| Input | Value |
|---|---|
| Base-year revenueTE Connectivity FY2025 10-K (fiscal year ended 2025-09-26; accession 0001104659-25-109150, filed 2025-11-10): Net sales $17,262M, us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2025 10-K (+8.9% reported, +6.4% organic). FY2025 is the latest COMPLETED year with a filed 10-K: FY2026 ended 2026-09-25 but its 10-K is not yet filed, so the year just ended is Year 1 of the forecast. Includes ~6 months of Richards Manufacturing (acquired 2025-04-01 for ~$2.3B; $179M of FY2025 sales). CROSS-CHECK: 9M FY2026 sales were $14,573M vs $12,513M a year earlier (+16.5%: 11.4% organic, 2.9% FX, 2.2% acquisitions), so TTM to 2026-06-26 is $19,322M — the business is already ~12% above this base. | $17,262,000,000 |
| Base EBIT marginTE Connectivity FY2025 10-K (fiscal year ended 2025-09-26; accession 0001104659-25-109150, filed 2025-11-10): GAAP operating income $3,211M / $17,262M = 18.60%. Reference only — the cash-flow math uses forecast.ebit_margin. GAAP EBIT here is AFTER $190M of acquired-intangible amortization and restructuring/acquisition charges. CROSS-CHECK: 9M FY2026 GAAP operating margin 19.9% ($2,898M / $14,573M); Q3 alone 19.0% GAAP (after $83M restructuring) and 21.9% adjusted. | 18.6% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 15% → 9% → 7% → 6% → 4% |
| Risk-free rateUS 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation; the program-wide rate shared by every researched model in this run. | 5.2% |
| BetaYahoo Finance / yfinance published 5Y-monthly beta: Published beta 1.14, used as published — not normalized. TE's mix (auto, industrial, AI hardware) is genuinely cyclical, so I see no stated reason to pull it toward 1.0. Each 0.1 of beta moves the value by roughly $8-9/share (see explainer); a beta of 1.0 would RAISE the value. | 1.14 |
| Terminal growthESTIMATEAssumption — house default: House default 2.5% (roughly long-run nominal GDP), well below the ~10.4% WACC. TE's long-run sales record (~3% CAGR FY2018-FY2025) gives no reason to go higher. | 2.5% |
| Diluted sharesTE Connectivity Q3 FY2026 earnings release, 8-K Ex-99.1 (accession 0001104659-26-085589, filed 2026-07-22): Weighted-average diluted shares for the quarter ended 2026-06-26: 293M (basic 291M); 295M for the nine months. Down from 298M a year earlier on continued buybacks ($2.0B returned to shareholders YTD). Shares outstanding per the quote feed are ~289.5M, which would add ~$1.80/share; the weighted diluted count is the house convention. | 293M |
| Market priceBackup price feed · as of 2026-10-19 13:16 UTC | $212.64 |
Change TEL's assumptions
The discount-rate dial and the editable model
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What does TE Connectivity plc do?
What does it do?
TE Connectivity plc, together with its subsidiaries, manufactures and sells connectivity and sensor solutions in Europe, the Middle East, Africa, the AsiaPacific, and the Americas. The company operates through two reportable segments, Transportation Solutions and Industrial Solutions. It operates in the Electronic Components industry (Technology sector), headquartered in Ireland. The company employs roughly 90,000 people.
How does it make money?
The business turns $19.3B in annual revenue into profit. Out of every $100 of sales, about $21 is left as operating profit (operating margin of 20.8%), after a 36% gross margin on the products/services it sells. After all costs, taxes and interest, 15.6% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks mixed: carries modest debt (0.4× equity), comfortably covers its short-term bills (1.9× current ratio), and is currently profitable.
Who at TEL filed insider trades?
| Date | Insider | Relationship | What happened | Value | Filing |
|---|---|---|---|---|---|
| Kroeger Shadrak W | Pres., Industrial Solutions | Option exercise | $880,122.00 | Form 4 for Kroeger Shadrak W (opens sec.gov in a new tab) | |
| Kroeger Shadrak W | Pres., Industrial Solutions | Open-market sale | $2,021,000.00 | Form 4 for Kroeger Shadrak W (opens sec.gov in a new tab) | |
| SAGAR MALAVIKA | SVP, Chief Human Resources Off | Option exercise | — | Form 4 for SAGAR MALAVIKA (opens sec.gov in a new tab) | |
| SAGAR MALAVIKA | SVP, Chief Human Resources Off | Shares withheld (tax) | $60,366.57 | Form 4 for SAGAR MALAVIKA (opens sec.gov in a new tab) | |
| Kroeger Shadrak W | Pres., Industrial Solutions | Option exercise | $880,122.00 | Form 4 for Kroeger Shadrak W (opens sec.gov in a new tab) | |
| Kroeger Shadrak W | Pres., Industrial Solutions | Open-market sale | $2,021,000.00 | Form 4 for Kroeger Shadrak W (opens sec.gov in a new tab) |
A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans
Common questions
What is TEL's intrinsic value?
TickerWorth's valuation lenses put TE Connectivity plc (TEL) between $83.00 and $420.04 per share, versus a market price of $212.64. They disagree too widely for us to state a single fair value, so we publish the range.
Is TEL overvalued or undervalued?
At $212.64 the price sits inside a range too wide to call either way. We don't call TEL overvalued or undervalued from a range this wide. This is an educational estimate, not advice.
What discount rate is used for TEL?
A WACC of 10.4% and a terminal growth rate of 2.5%.
Is TE Connectivity stock undervalued?
TickerWorth's fair-value range for TE Connectivity plc (TEL) is $83.00 – $420.04 against a market price of $212.64. Too wide to call. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.
TE Connectivity (TEL) DCF valuation and fair value
Our fair-value range for TE Connectivity plc (TEL) is $83.00 – $420.04, built on a 10.4% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into TE Connectivity stock?
Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $212.64. A model estimate, not investment advice.
TE Connectivity (TEL) insider trading
The most recent insider filing (SEC Form 4) for TE Connectivity plc (TEL): Kroeger Shadrak W, Pres., Industrial Solutions, option exercise on 2026-06-01. The latest filings are listed on this page. A disclosure, not a signal to trade.
How does TEL compare with its peers?
Other ways into the coverage
Not investment advice. TickerWorth Score is a model output.
TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.