Discounted Cash Flow (DCF) Analysis Levered

TE Connectivity Ltd. (TEL)

$123.95

-1.83 (-1.45%)

All numbers are in Millions, Currency in USD

Stock DCF: 2.15 | 123.95 | 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	4,359	3,688.39	3,120.95	2,640.81	2,234.54	1,890.76
Revenue (%)
Operating Cash Flow	2,451	2,422	1,992	2,676	944	674.87	571.05	483.19	408.86	345.96
Operating Cash Flow (%)
Capital Expenditure	-935	-749	-560	-690	-212	-194.32	-164.42	-139.13	-117.72	-99.61
Capital Expenditure (%)
Free Cash Flow	1,516	1,673	1,432	1,986	732	480.55	406.62	344.07	291.13	246.34

Weighted Average Cost Of Capital

Share price	$ 123.95
Beta	1.300
Diluted Shares Outstanding	325
Cost of Debt
Tax Rate	-8.59
After-tax Cost of Debt	0.43%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.735
Total Debt	4,206
Total Equity	40,283.75
Total Capital	44,489.75
Debt Weighting	9.45
Equity Weighting	90.55
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	4,359	3,688.39	3,120.95	2,640.81	2,234.54	1,890.76
Operating Cash Flow	2,451	2,422	1,992	2,676	944	674.87	571.05	483.19	408.86	345.96
Capital Expenditure	-935	-749	-560	-690	-212	-194.32	-164.42	-139.13	-117.72	-99.61
Free Cash Flow	1,516	1,673	1,432	1,986	732	480.55	406.62	344.07	291.13	246.34
WACC
PV LFCF						441.44	343.13	266.71	207.31	161.14
SUM PV LFCF										1,419.73

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.86
Free cash flow (t + 1)	251.27
Terminal Value	3,662.85
Present Value of Terminal Value	2,395.95

Intrinsic Value

Enterprise Value	3,815.68
Net Debt	3,118
Equity Value	697.68
Shares Outstanding	325
Equity Value Per Share	2.15