Fair value published on 19 Oct 2026, 18:04 CEST; previously $186 since 11 Oct 2026, 00:00 CEST.
ACCE price target published on 20 Sept 2026, 00:00 CEST.
Rating published on 19 Oct 2026, 18:04 CEST.
Price used: $208 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
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
16.9% above
-14.5% to fair value
ACCE score
62
out of 100
Analysts
68% buy
19 covering
P/E
21.0x
forward 16.6x
1-year return
-11.1%
Dividend yield
1.36%
TE Connectivity plc Ordinary Shares in four questions
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Overview
ACCE thesis
TE Connectivity manufactures connectors, sensors, and cable assemblies for industrial equipment, vehicles, data centers, and aerospace platforms. The company benefits from secular demand for electrification in automotive and industrial automation, where its products are embedded in customer designs and difficult to displace once qualified. Revenue growth of 13.8% reflects recovery in end markets after 2023 weakness, and the company is guiding for mid-single-digit organic growth as a normalized baseline. Operating margins of 20.8% sit below historical peaks of 23-24%, creating room for operating leverage if volumes stabilize and the company executes on cost initiatives announced in the past year. At a forward PE of 16.8x against 23.3% ROE and a 20.8% operating margin, the valuation reflects near-term caution rather than structural concern, making it worth examining whether current guidance is conservative relative to automotive and data center capex cycles.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
moderate
5-year revenue growth stalled
5y CAGR of 2.0% contrasts sharply with recent YoY +13.8%, suggesting cyclical recovery rather than structural acceleration. Sustainability unclear.
moderate
Valuation multiple compression risk
Forward P/E 16.8 sits below historical tech average; modest ACCE score (65) and low M-score (56) suggest limited margin of safety at current $218 price near fair value midpoint.
moderate
Insider selling without offsetting buys
$10.33M in sales against $0 in buys over last 10 disclosures signals weak insider conviction, though not extreme given market cap scale.
AI research notes
AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Strong 23.3% ROE and 15.6% net margin demonstrate TEL converts revenue into shareholder returns efficiently.
TEL generated $2.3B in free cash flow with a conservative 0.43 debt-to-equity ratio, enabling shareholder returns.
Why it could disappoint
Consensus fair value of $185.59 sits 15.0% below the current $218.29 share price, suggesting overvaluation.
Long-term revenue growth averages only 2.0% annually, making the current 13.8% YoY growth potentially unsustainable.
At 21.0x trailing P/E and 3.7% free cash flow yield, TEL offers limited margin of safety for downside protection.
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Next results
Oct 28, 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
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Where TEL's valuation models land
Price
$208.05
Model fair value
$178
Model range
$77.62 to $356
Fair value $178
Price $208
The price sits inside the 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