Latest Ratios: P/E Ratio 32.7x · EV/EBITDA 15.9x · ROE 14.6%. (2003–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $59.1B | $64.9B | $46.7B | $39.2B | $35.9B | $48.0B | $31.7B | $31.7B | $31.0B | $29.7B | $23.8B |
| Enterprise Value | $64.4B | $70.2B | $50.4B | $42.4B | $39.7B | $51.6B | $35.7B | $34.7B | $34.2B | $32.9B | $27.2B |
| P/E Ratio → | 32.70 | 35.23 | 14.64 | 20.49 | 14.77 | 21.22 | — | 16.40 | 12.09 | 17.67 | 11.83 |
| P/S Ratio | 3.46 | 3.80 | 2.95 | 2.44 | 2.20 | 3.21 | 2.60 | 2.36 | 2.22 | 2.27 | 1.94 |
| P/B Ratio | 4.73 | 5.10 | 3.74 | 3.36 | 3.29 | 4.46 | 3.33 | 3.00 | 2.87 | 3.05 | 2.80 |
| P/FCF | 18.45 | 20.26 | 16.71 | 16.32 | 21.10 | 24.15 | 22.11 | 18.94 | 20.47 | 18.37 | 18.36 |
| P/OCF | 14.28 | 15.68 | 13.44 | 12.50 | 14.53 | 17.93 | 15.89 | 13.08 | 12.66 | 12.81 | 12.36 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.11 | 3.18 | 2.64 | 2.44 | 3.46 | 2.93 | 2.58 | 2.44 | 2.51 | 2.22 |
| EV / EBITDA | 15.91 | 17.34 | 13.91 | 12.08 | 10.88 | 15.27 | 14.33 | 12.04 | 10.97 | 12.18 | 10.82 |
| EV / EBIT | 20.06 | 21.39 | 17.57 | 18.05 | 14.19 | 21.22 | 62.37 | 17.37 | 14.57 | 17.76 | 21.09 |
| EV / FCF | — | 21.91 | 18.01 | 17.66 | 23.37 | 26.00 | 24.91 | 20.75 | 22.55 | 20.30 | 21.00 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 34.6% | 34.6% | 34.4% | 31.1% | 31.5% | 31.7% | 30.1% | 32.1% | 33.4% | 31.4% | 32.3% |
| Operating Margin | 18.8% | 18.8% | 17.6% | 16.9% | 17.6% | 17.5% | 14.6% | 16.3% | 17.5% | 15.9% | 15.7% |
| Net Profit Margin | 10.8% | 10.8% | 20.2% | 11.9% | 14.9% | 15.2% | -2.0% | 14.4% | 18.4% | 12.8% | 16.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 14.6% | 14.6% | 26.5% | 16.9% | 22.4% | 22.3% | -2.4% | 18.0% | 24.9% | 18.4% | 21.9% |
| ROA | 7.7% | 7.7% | 14.3% | 9.0% | 11.5% | 11.1% | -1.2% | 9.6% | 12.9% | 9.1% | 10.4% |
| ROIC | 14.1% | 14.1% | 13.5% | 13.7% | 14.7% | 14.0% | 9.8% | 11.9% | 13.7% | 12.6% | 13.1% |
| ROCE | 16.9% | 16.9% | 15.8% | 16.3% | 17.4% | 16.1% | 11.2% | 13.7% | 15.5% | 13.9% | 12.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.51 | 0.51 | 0.40 | 0.42 | 0.45 | 0.45 | 0.52 | 0.38 | 0.37 | 0.45 | 0.48 |
| Debt / EBITDA | 1.62 | 1.62 | 1.37 | 1.39 | 1.36 | 1.44 | 1.99 | 1.37 | 1.28 | 1.61 | 1.62 |
| Net Debt / Equity | — | 0.42 | 0.29 | 0.28 | 0.35 | 0.34 | 0.42 | 0.29 | 0.29 | 0.32 | 0.40 |
| Net Debt / EBITDA | 1.31 | 1.31 | 1.00 | 0.92 | 1.06 | 1.09 | 1.61 | 1.05 | 1.01 | 1.16 | 1.36 |
| Debt / FCF | — | 1.65 | 1.30 | 1.34 | 2.27 | 1.85 | 2.80 | 1.82 | 2.08 | 1.93 | 2.65 |
| Interest Coverage | 42.61 | 42.61 | 40.96 | 29.35 | 42.41 | 43.46 | 11.92 | 29.40 | 21.93 | 14.23 | 10.15 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.56 | 1.56 | 1.61 | 1.77 | 1.57 | 1.56 | 1.57 | 1.57 | 1.41 | 1.54 | 1.56 |
| Quick Ratio | 1.03 | 1.03 | 1.08 | 1.20 | 0.99 | 1.02 | 1.04 | 1.05 | 0.98 | 1.07 | 1.04 |
| Cash Ratio | 0.25 | 0.25 | 0.28 | 0.37 | 0.23 | 0.26 | 0.26 | 0.26 | 0.19 | 0.32 | 0.21 |
| Asset Turnover | — | 0.68 | 0.69 | 0.74 | 0.78 | 0.70 | 0.63 | 0.68 | 0.69 | 0.68 | 0.70 |
| Inventory Turnover | 4.14 | 4.14 | 4.13 | 4.33 | 4.17 | 4.06 | 4.36 | 4.97 | 5.02 | 4.45 | 5.19 |
| Days Sales Outstanding | — | 72.68 | 70.37 | 67.54 | 64.23 | 71.62 | 71.28 | 62.97 | 61.61 | 59.51 | 61.02 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.3% | 1.2% | 1.6% | 1.9% | 1.9% | 1.3% | 2.0% | 1.9% | 1.9% | 1.8% | 2.1% |
| Payout Ratio | 43.6% | 43.6% | 23.8% | 38.0% | 28.2% | 28.6% | — | 31.5% | 22.9% | 32.5% | 25.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.1% | 2.8% | 6.8% | 4.9% | 6.8% | 4.7% | — | 6.1% | 8.3% | 5.7% | 8.4% |
| FCF Yield | 5.4% | 4.9% | 6.0% | 6.1% | 4.7% | 4.1% | 4.5% | 5.3% | 4.9% | 5.4% | 5.4% |
| Buyback Yield | 2.3% | 2.1% | 4.4% | 2.4% | 3.9% | 1.7% | 1.7% | 3.4% | 2.8% | 2.1% | 11.7% |
| Total Shareholder Yield | 3.6% | 3.3% | 6.0% | 4.3% | 5.8% | 3.1% | 3.6% | 5.4% | 4.7% | 3.9% | 13.9% |
| Shares Outstanding | — | $299M | $309M | $317M | $325M | $333M | $332M | $340M | $353M | $358M | $369M |
Cyclical Automotive Demand Sensitivity
According to current market data, TEL trades at a forward P/E of 17.61, which represents a significant discount to peers like Amphenol, suggesting that investors are pricing in the company's higher exposure to cyclical automotive production volumes rather than its long-term content-per-vehicle growth story.
The valuation gap appears to stem from the market's preference for the higher-growth, data-center-heavy profile of competitors. While the forward multiple is modest, it implies that the market remains skeptical of the company's ability to decouple its revenue growth from broader global light vehicle production cycles.
Based on reported financial statements, TEL's ROIC has hovered in the 3% to 4% range over the last ten quarters, a figure that warrants further investigation given the company's aggressive pursuit of bolt-on acquisitions in the sensor and medical technology sectors to drive long-term value.
The relatively low ROIC suggests that the integration of these specialized businesses may be diluting overall capital efficiency, or that the company is carrying significant goodwill that suppresses the return metric. Investors should monitor whether these investments eventually yield the expected margin expansion as the portfolio matures.
As indicated by the provided data, TEL's cash conversion cycle has remained stubbornly high, averaging roughly 90 to 100 days over the past ten quarters, which suggests limited leverage over suppliers and a persistent reliance on maintaining significant inventory levels to support its global manufacturing footprint.
The stability of the CCC indicates that the company's operational efficiency is largely fixed by its current supply chain architecture. Any meaningful improvement in cash generation would likely require a structural shift in inventory management or a more aggressive negotiation of payment terms with its global OEM customer base.
The price-to-earnings ratio is frequently misapplied to TEL, as it obscures the company's underlying cash-generating power by failing to account for the non-recurring restructuring charges and acquisition-related amortization that often depress reported net income in any given quarter, according to historical financial analysis.
Investors should prioritize free cash flow yield or EV/EBITDA as more reliable indicators of operational health, as these metrics better reflect the company's ability to fund its dividend and buyback programs. Relying solely on P/E may lead to an inaccurate assessment of the company's true earnings quality.
Includes 30+ ratios · 23 years · Updated daily
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Quick answers to the most common questions about buying TEL stock.
TE Connectivity Ltd.'s current P/E ratio is 32.7x. The historical average is 15.5x. This places it at the 94th percentile of its historical range.
TE Connectivity Ltd.'s current EV/EBITDA is 15.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.7x.
TE Connectivity Ltd.'s return on equity (ROE) is 14.6%. The historical average is 12.3%.
Based on historical data, TE Connectivity Ltd. is trading at a P/E of 32.7x. This is at the 94th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
TE Connectivity Ltd.'s current dividend yield is 1.33% with a payout ratio of 43.6%.
TE Connectivity Ltd. has 34.6% gross margin and 18.8% operating margin. Operating margin between 10-20% is typical for established companies.
TE Connectivity Ltd.'s Debt/EBITDA ratio is 1.6x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.