Discounted Cash Flow (DCF) Analysis Unlevered

TE Connectivity Ltd. (TEL)

$142.84

-0.27 (-0.19%)
All numbers are in Millions, Currency in USD
Stock DCF: 69.14 | 142.84 | overvalue

Operating Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 13,44812,17214,92316,28116,03416,863.5817,736.0918,653.7319,618.8620,633.92
Revenue (%)
EBITDA 2,9712,4763,4673,7703,5153,735.113,928.364,131.614,345.384,570.20
EBITDA (%)
EBIT 2,2811,7652,6982,9852,7212,861.623,009.673,165.393,329.173,501.41
EBIT (%)
Depreciation 690711769785794873.49918.69966.221,016.211,068.79
Depreciation (%)

Balance Sheet Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Total Cash 9279451,2031,0881,6611,3411,410.381,483.351,560.101,640.82
Total Cash (%)
Account Receivables 2,3202,3772,9282,8652,9673,119.843,281.263,451.033,629.583,817.37
Account Receivables (%)
Inventories 1,8361,9502,5112,6762,5522,659.452,797.052,941.763,093.973,254.05
Inventories (%)
Accounts Payable 1,3571,2761,9111,5931,5631,784.571,876.901,974.012,076.152,183.56
Accounts Payable (%)
Capital Expenditure -749-560-690-768-732-812.03-854.05-898.23-944.71-993.59
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 142.84
Beta 1.407
Diluted Shares Outstanding 317
Cost of Debt
Tax Rate 15.78
After-tax Cost of Debt 3.64%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.964
Total Debt 4,211
Total Equity 45,280.28
Total Capital 49,491.28
Debt Weighting 8.51
Equity Weighting 91.49
Wacc

Build Up Free Cash

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 13,44812,17214,92316,28116,03416,863.5817,736.0918,653.7319,618.8620,633.92
EBITDA 2,9712,4763,4673,7703,5153,735.113,928.364,131.614,345.384,570.20
EBIT 2,2811,7652,6982,9852,7212,861.623,009.673,165.393,329.173,501.41
Tax Rate 4.51%149.43%4.92%11.16%15.78%37.16%37.16%37.16%37.16%37.16%
EBIAT 2,178.23-872.402,565.262,651.882,291.491,798.251,891.291,989.152,092.062,200.30
Depreciation 690711769785794873.49918.69966.221,016.211,068.79
Accounts Receivable --57-55163-102-152.84-161.42-169.77-178.55-187.79
Inventories --114-561-165124-107.45-137.60-144.72-152.20-160.08
Accounts Payable --81635-318-30221.5792.3397.11102.13107.42
Capital Expenditure -749-560-690-768-732-812.03-854.05-898.23-944.71-993.59
UFCF 2,119.23-973.402,167.262,248.882,345.491,820.991,749.251,839.761,934.942,035.05
WACC
PV UFCF 1,650.351,436.771,369.501,305.381,244.26
SUM PV UFCF 7,006.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.34
Free cash flow (t + 1) 2,096.11
Terminal Value 28,557.30
Present Value of Terminal Value 17,460.32

Intrinsic Value

Enterprise Value 24,466.57
Net Debt 2,550
Equity Value 21,916.57
Shares Outstanding 317
Equity Value Per Share 69.14