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TE Connectivity Ltd (TEL) Stock: How Does it Score on Valuation Metrics?

Wednesday, August 17, 2022 03:42 PM | InvestorsObserver Analysts
TE Connectivity Ltd (TEL) Stock: How Does it Score on Valuation Metrics?

InvestorsObserver gives TE Connectivity Ltd (TEL) a strong valuation score of 61 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. TEL currently holds a better value than 61% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.

Valuation Rank - 61
TEL gets a 61 Valuation Rank today. Find out what this means to you and get the rest of the rankings on TEL!

Metrics Analysis

TEL's trailing-12-month Price to Earnings (PE) ratio of 18 puts it around the historical average of roughly 15. TEL is a average value at its current trading price as investors are paying around what its worth in relation to the company's earnings. TEL's trailing-12-month earnings per share (EPS) of 7.64 does justify what it is currently trading at in the market. Trailing PE ratios, however, do not factor in a company's projected growth rate, resulting in some firms having high PE ratios due to high growth potentially enticing investors even if current earnings are low.
TEL has a 12 month forward PE to Growth (PEG) ratio of 1.81. Markets are overvaluing TEL in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 7.63999986's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.

Summary

All together these valuation metrics paint a pretty poor picture for TEL at its current price due to a overvalued PEG ratio due to strong growth. The PE and PEG for TEL are worse than the average of the market resulting in a valuation score of 61. Click Here to get the full Report on TE Connectivity Ltd (TEL) stock.

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