Discounted Cash Flow (DCF) Analysis Levered

TE Connectivity Ltd. (TEL)

$133.77

+3.57 (+2.74%)

All numbers are in Millions, Currency in USD

Stock DCF: 88.90 | 133.77 | overvalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	13,988	13,448	12,172	14,923	16,281	17,027.98	17,809.24	18,626.34	19,480.92	20,374.72
Revenue (%)
Operating Cash Flow	2,451	2,422	1,992	2,676	2,468	2,894.37	3,027.16	3,166.05	3,311.31	3,463.24
Operating Cash Flow (%)
Capital Expenditure	-935	-749	-560	-690	-768	-892.11	-933.04	-975.85	-1,020.63	-1,067.45
Capital Expenditure (%)
Free Cash Flow	1,516	1,673	1,432	1,986	1,700	2,002.25	2,094.12	2,190.20	2,290.68	2,395.78

Weighted Average Cost Of Capital

Share price	$ 133.77
Beta	1.302
Diluted Shares Outstanding	325
Cost of Debt
Tax Rate	11.16
After-tax Cost of Debt	1.35%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.526
Total Debt	4,332
Total Equity	43,475.25
Total Capital	47,807.25
Debt Weighting	9.06
Equity Weighting	90.94
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	13,988	13,448	12,172	14,923	16,281	17,027.98	17,809.24	18,626.34	19,480.92	20,374.72
Operating Cash Flow	2,451	2,422	1,992	2,676	2,468	2,894.37	3,027.16	3,166.05	3,311.31	3,463.24
Capital Expenditure	-935	-749	-560	-690	-768	-892.11	-933.04	-975.85	-1,020.63	-1,067.45
Free Cash Flow	1,516	1,673	1,432	1,986	1,700	2,002.25	2,094.12	2,190.20	2,290.68	2,395.78
WACC
PV LFCF						1,840.48	1,769.39	1,701.05	1,635.34	1,572.18
SUM PV LFCF										8,518.44

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.79
Free cash flow (t + 1)	2,443.70
Terminal Value	35,989.66
Present Value of Terminal Value	23,617.44

Intrinsic Value

Enterprise Value	32,135.88
Net Debt	3,244
Equity Value	28,891.88
Shares Outstanding	325
Equity Value Per Share	88.90