DCF Tool

TEL

TE Connectivity Ltd – Other Electronic Parts and Equipment Merchant Wholesalers
about te connectivity te connectivity (nyse: tel) is a $12 billion global technology leader. our connectivity and sensor solutions are essential in today’s increasingly connected world. we collaborate with engineers to transform their concepts into creations – redefining what’s possible using intelligent, efficient and high-performing te products and solutions proven in harsh environments. our 72,000 people, including over 7,000 engineers, partner with customers in close to 150 countries across a wide range of industries. we believe every connection counts – www.te.com.
Analysis Results
Intrinsic Value $130.29
Latest Price $143.06
Relative Value 10% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 5.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 5.3%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2024 2.79 2.56
2025 2.94 2.46
2026 3.09 2.37
2027 3.26 2.29
2028 3.43 2.21
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 48.5 billion. This corresponds to a present value of 28.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 11.9 billion. Adding in the terminal value gives a total present value of 40.5 billion.

There are presently 311.0 million outstanding shares, so the intrinsic value per share is 130.29.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 7,892,000,000
Current Cash 1,661,000,000
Current Liabilities 4,463,000,000
Current Debt 682,000,000
Non-Cash Working Capital (NCWC) 2,450,000,000
Change in NCWC -12,000,000
EBIT 2,677,000,000
Tax Provision 364,000,000
Depreciation and Amortization 794,000,000
Capital Expenditure -732,000,000
Unlevered Free Cash Flow 2,297,358,024
Current Assets 7,268,000,000
Current Cash 1,088,000,000
Current Liabilities 4,632,000,000
Current Debt 914,000,000
Non-Cash Working Capital (NCWC) 2,462,000,000
Change in NCWC 555,000,000
EBIT 2,942,000,000
Tax Provision 306,000,000
Depreciation and Amortization 785,000,000
Capital Expenditure -768,000,000
Unlevered Free Cash Flow 3,184,599,341
Current Assets 7,263,000,000
Current Cash 1,203,000,000
Current Liabilities 4,656,000,000
Current Debt 503,000,000
Non-Cash Working Capital (NCWC) 1,907,000,000
Change in NCWC 64,000,000
EBIT 2,698,000,000
Tax Provision 123,000,000
Depreciation and Amortization 769,000,000
Capital Expenditure -690,000,000
Unlevered Free Cash Flow 2,701,448,275
Current Assets 5,784,000,000
Current Cash 945,000,000
Current Liabilities 3,690,000,000
Current Debt 694,000,000
Non-Cash Working Capital (NCWC) 1,843,000,000
Change in NCWC 186,000,000
EBIT 1,730,000,000
Tax Provision 783,000,000
Depreciation and Amortization 711,000,000
Capital Expenditure -560,000,000
Unlevered Free Cash Flow 1,284,000,000
Current Assets 5,554,000,000
Current Cash 927,000,000
Current Liabilities 3,540,000,000
Current Debt 570,000,000
Non-Cash Working Capital (NCWC) 1,657,000,000
Change in NCWC -247,000,000
EBIT 2,260,000,000
Tax Provision -15,000,000
Depreciation and Amortization 690,000,000
Capital Expenditure -749,000,000
Unlevered Free Cash Flow 1,954,000,000
Current Assets 6,199,000,000
Current Cash 848,000,000
Current Liabilities 4,410,000,000
Current Debt 963,000,000
Non-Cash Working Capital (NCWC) 1,904,000,000
Change in NCWC 333,000,000
EBIT 2,471,000,000
Tax Provision -344,000,000
Depreciation and Amortization 667,000,000
Capital Expenditure -935,000,000
Unlevered Free Cash Flow 2,536,000,000
Current Assets 5,926,000,000
Current Cash 1,218,000,000
Current Liabilities 3,847,000,000
Current Debt 710,000,000
Non-Cash Working Capital (NCWC) 1,571,000,000
Change in NCWC 178,000,000
EBIT 2,201,000,000
Tax Provision 255,000,000
Depreciation and Amortization 635,000,000
Capital Expenditure -702,000,000
Unlevered Free Cash Flow 2,020,892,634
Current Assets 4,775,000,000
Current Cash 647,000,000
Current Liabilities 3,066,000,000
Current Debt 331,000,000
Non-Cash Working Capital (NCWC) 1,393,000,000
Change in NCWC -88,000,000
EBIT 1,926,000,000
Tax Provision -779,000,000
Depreciation and Amortization 585,000,000
Capital Expenditure -628,000,000
Unlevered Free Cash Flow 1,795,000,000
Current Assets 7,887,000,000
Current Cash 3,329,000,000
Current Liabilities 3,577,000,000
Current Debt 500,000,000
Non-Cash Working Capital (NCWC) 1,481,000,000
Change in NCWC -319,000,000
EBIT 1,956,000,000
Tax Provision 337,000,000
Depreciation and Amortization 616,000,000
Capital Expenditure -600,000,000
Unlevered Free Cash Flow 1,234,478,095
Current Assets 7,544,000,000
Current Cash 2,457,000,000
Current Liabilities 3,954,000,000
Current Debt 667,000,000
Non-Cash Working Capital (NCWC) 1,800,000,000
Change in NCWC 107,000,000
EBIT 2,135,000,000
Tax Provision 207,000,000
Depreciation and Amortization 617,000,000
Capital Expenditure -673,000,000
Unlevered Free Cash Flow 1,964,584,669
Current Assets 6,309,000,000
Current Cash 1,403,000,000
Current Liabilities 3,924,000,000
Current Debt 711,000,000
Non-Cash Working Capital (NCWC) 1,693,000,000
Change in NCWC -232,000,000
EBIT 1,881,000,000
Tax Provision -29,000,000
Depreciation and Amortization 607,000,000
Capital Expenditure -615,000,000
Unlevered Free Cash Flow 1,641,000,000
Current Assets 6,503,000,000
Current Cash 1,589,000,000
Current Liabilities 4,004,000,000
Current Debt 1,015,000,000
Non-Cash Working Capital (NCWC) 1,925,000,000
Change in NCWC -88,000,000
EBIT 1,673,000,000
Tax Provision 249,000,000
Depreciation and Amortization 609,000,000
Capital Expenditure -533,000,000
Unlevered Free Cash Flow 1,366,599,293

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