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TE Connectivity Ltd – Electronic Computer Manufacturing
TE Connectivity is a $12 billion global industrial technology leader creating a safer, sustainable, productive and connected future. Its broad range of connectivity and sensor solutions, proven in the harshest environments, enable advancements in transportation, industrial applications, medical technology, energy, data communications and the home. With approximately 80,000 employees, including more than 7,500 engineers, working alongside customers in approximately 140 countries, TE ensures that EVERY CONNECTION COUNTS.
Analysis Results
Intrinsic Value $394.39
Latest Price $125.42
Relative Value 68% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
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 8.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 8.1%, 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)
2023 3.17 3.08
2024 3.43 3.22
2025 3.71 3.38
2026 4.01 3.54
2027 4.34 3.71
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 130 billion. This corresponds to a present value of 108 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 16.9 billion. Adding in the terminal value gives a total present value of 125 billion.

There are presently 316.0 million outstanding shares, so the intrinsic value per share is 394.39.

Financial Statements

The following data was to determine the past cash flows.

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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