Assessing TE Connectivity (TEL) Valuation As Shares Lag Recent Total Return Performance

Simply Wall St

Wed, February 11, 2026 at 12:13 PM GMT+9 3 min read

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TEL

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Why TE Connectivity Is On Investors’ Radar Today

With no single headline event driving TE Connectivity (TEL) this week, investors are instead focusing on how its current share price of US$225.78 lines up with recent returns and the company’s reported financial profile.

See our latest analysis for TE Connectivity.

While the share price has eased in the short term, with a 90 day share price return showing an 8.34% decline, the 1 year total shareholder return of 54.03% points to earlier strength that investors are now reassessing against the current US$225.78 level.

If you are weighing TEL against other opportunities in connected tech and automation, it may be a good time to scan the market for 33 AI infrastructure stocks that could complement your watchlist.

With TEL trading at US$225.78, sitting below the average analyst price target yet showing strong multi year total returns, the key question now is whether this is an entry point or if the market is already pricing in future growth.

Most Popular Narrative: 17% Undervalued

At $225.78, TE Connectivity is sitting below a narrative fair value of $272.00, which hinges on how durable its growth and margins can be under a 9.22% discount rate.

Broad-based order growth, especially in Industrial and Energy markets, coupled with positive early signs of recovery in factory automation, creates a durable foundation for double-digit EPS growth and high free cash flow conversion (>100%), further strengthening the company’s capacity to invest in secular tailwinds or execute value-accretive acquisitions.

Read the complete narrative.

Curious what earnings trajectory and margin profile justify that gap between $225.78 and $272.00? The narrative leans on compounded revenue growth, expanding profitability and a future earnings multiple that assumes TE keeps converting cash at a high rate without overpaying for growth. The full story shows how those pieces are expected to fit together over time.

Result: Fair Value of $272.00 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, this hinges on AI, energy and Asian transportation demand holding up, and on TE continuing to execute large capacity investments and acquisitions without margin or cash flow strain.

Find out about the key risks to this TE Connectivity narrative.

Another Angle On TEL’s Valuation

The fair value narrative of $272.00 paints TEL as 17% undervalued, but the earnings multiple tells a tighter story. At a P/E of 32.1x, TEL trades above the US Electronic industry at 27.8x and above its own fair ratio of 30.6x. This points to a fuller price and less room for error. So is the real risk that expectations are already baked into today’s $225.78?

Story continues  

See what the numbers say about this price — find out in our valuation breakdown.

NYSE:TEL P/E Ratio as at Feb 2026

Build Your Own TE Connectivity Narrative

If the story here does not quite match how you see TEL, you can test your own assumptions, remix the inputs and Do it your way in just a few minutes.

A great starting point for your TE Connectivity research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include TEL.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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