2 models fit Sensata Technologies Holding plc Ordinary Shares and they disagree: 0 of 2 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
Large premium(i)Silver62
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
Fair value published on 18 Oct 2026, 15:06 CEST; previously $22.73 since 14 Oct 2026, 00:00 CEST.
ACCE price target published on 10 Oct 2026, 00:00 CEST.
Rating published on 18 Oct 2026, 15:06 CEST.
Price used: $40.38 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow and EV/EBITDA comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
67.8% above
-40.4% to fair value
ACCE score
59
out of 100
Analysts
55% buy
11 covering
P/E
67.3x
forward 9.9x
1-year return
+25.2%
Dividend yield
1.18%
Sensata Technologies Holding plc Ordinary Shares in four questions
Plain answers, details below
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Overview
ACCE thesis
Sensata makes the sensors and electrical protection components that go into vehicles and industrial equipment, including pressure, temperature and current sensors and the circuit breakers and fuses that protect battery systems. Its moat rests on being specified into long-life platforms, where qualification cycles are slow and switching a sensor supplier means years of revalidation, which keeps revenue sticky. The near-term driver is electrification: EV battery packs and power electronics need more high-voltage sensing and protection per vehicle than internal combustion cars did. Revenue growth of 5.0% is modest, but the forward P/E of 10.3 against a trailing P/E of 67.6 suggests the earnings base is being rebuilt after a year of depressed reported profit, so the gap between the two multiples is the first thing to test. With a 16.4% operating margin and 29.5% gross margin, the business is profitable at the operating line, while a 3.1% ROE signals that the balance sheet and acquisition history are diluting returns to shareholders. Worth a deeper look to see whether the forward earnings recovery is real and whether it converts into equity returns.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Stretched trailing valuation
Trailing P/E is 67.6 while forward P/E is 10.3, and the stock trades 67.8% above the model fair value of $24.07. Earnings recovery is carrying the multiple, so sizing should reflect that.
moderate
Thin returns on capital
ROE is only +3.1% and net margin +2.4% against Debt/Equity of 1.05, so leverage is doing much of the work on a modest return base.
moderate
Score slipped over 90 days
ACCE score fell from 62 to 58 over 90 days, with the Quality component at 50 and Momentum at 54.
AI research notes
AI-assisted·How I use AIWritten Oct 18, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Free cash flow of $490M over the last twelve months gives the company real cash generation despite thin accounting profits.
The stock offers a free cash flow yield of 8.3%, and analysts' mean price target sits 31.3% above the current share price.
Earnings per share beat expectations by 5.4%, with 0.98 reported against 0.93 expected.
Why it could disappoint
Net margin of 2.4% and return on invested capital of 0.4% show the business earns very little on its sales and capital.
Trading at a forward P/E of 10.3x looks cheap, yet the trailing P/E of 67.6x shows reported earnings are far weaker than the headline suggests.
The consensus model fair value of $24.07 sits 40.7% below the share price, and only 2 of 5 valuation models feed into it.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 27, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where ST's valuation models land
Price
$40.38
Model fair value
$24.07
Model range
$13.11 to $36.86
Fair value $24.07
Price $40.38
The price is above the whole model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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+Conviction breakdown and growth / value / quality / momentum scores