What is TE Connectivity Ltd. (TEL) DCF Fair Value and Intrinsic Value in 2026?

TE Connectivity Ltd. (TEL) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is TE Connectivity Ltd.'s historical Return on Invested Capital (ROIC) and Moat Rating?

TE Connectivity Ltd. operates in the Technology sector (Electronic Components) with an economic moat rating of NARROW. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is TE Connectivity Ltd.'s financial health rating and Piotroski F-Score?

TE Connectivity Ltd.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor TE Connectivity Ltd. (TEL) for quarterly SEC filing thesis breaks?

LocalAlpha audits TE Connectivity Ltd.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksTEL

TEL

TE Connectivity plcTechnology / Electronic ComponentsINTACT

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 provides antennas, application tooling, cable assemblies, connectors, electromagnetic compatibility/electromagnetic interference solutions, energy and power, fiber optics, heat shrink tubing, identification and labeling, medical components, passive components, relays and contactors, sensors, switches, terminals and splices, wires and cables, and wire protection and management solutions. The company also offers training and other services, including 3D printing for production, back shells prototyping, electrical installation training, HarnWare software, machine tooling service and repair, medical device design services, microfluidic devices, and sensor manufacturing services as well as conducts automotive webinars. It serves 5G and wireless equipment, aerospace, appliances, automation and control, automotive, autosport, commercial and industrial vehicles, connected home, data centers and artificial intelligence, defense and military, energy solutions, e-mobility, industrial machinery, intelligent buildings, IoT connectivity, medical technologies, oil and gas/marine, personal electronics and wearable technology, rail, sensor applications, space, and other industries. The company was formerly known as Tyco Electronics Ltd. and changed its name to TE Connectivity plc in March 2011. TE Connectivity plc was founded in 1941 and is based in Ballybrit, Ireland.

Share Price

$212.73

52W: $190.27 - $252.56

DCF Fair Value

$173.74

-22.4% Premium

Thesis Hub

P/E (TTM)

20.8x

ROIC

15.6%

Operating Margin

20.8%

FCF Yield

3.8%

Debt / Equity

0.43x

Piotroski Score

8/9

Altman Z-Score

3.47

Market Cap

$61.7B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($173.74)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$173.74

MOS Buy Target (-25%)

$130.31

Valuation Overlays: DCF Fair Value ($173.74) 25% MOS Buy Target ($130.31) Revised Graham ($225.56) Graham Number ($102.45)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$212.73

DCF Fair Value

$173.63

-22.5% Premium

Starting Free Cash Flow ($M)$2,337M

$100M$2,337M (Reported)$50,000M

Stage 1 Growth (Years 1-5)10.4%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$4,600M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$23.1B

PV of Terminal Value

$31.8B

Implied Enterprise Value

$55.0B

Implied Equity Value

$50.4B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$2,580	$2,848	$3,145	$3,472	$3,833	$4,005	$4,185	$4,374	$4,571	$4,776
Present Value (PV)	$2,367	$2,397	$2,428	$2,459	$2,491	$2,388	$2,290	$2,195	$2,104	$2,018

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-107.6% Premium

$102.45

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $10.21BVPS: $45.69

Revised Graham Formula+5.7%

$225.56

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings3.6% Yield

$7.66 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $2.2BYield: 3.6%

Reverse DCF: Market Growth Expectation

FAIR BARRIER

9.3% CAGR (Next 10 Yrs)

At the current price of $212.73, the market is assuming the business will compound Free Cash Flow at 9.3% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

ℹ Fair expectations: Requires steady execution.

Autonomous Thesis Underwriting

Surveil TEL with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for TE Connectivity plc. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 20.8% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: TE Connectivity plc (TEL) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for TE Connectivity plc.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, TE Connectivity plc has an estimated DCF intrinsic fair value of $173.74 per share compared to its current market price of $212.73. This represents an estimated 22.4% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $102.45.