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GuruFocus has detected 4 Warning Signs with TE Connectivity Ltd $TEL.
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TE Connectivity Ltd (NYSE:TEL)
EV-to-EBITDA
15.28 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, TE Connectivity Ltd's enterprise value is $30,066 Mil. TE Connectivity Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $1,967 Mil. Therefore, TE Connectivity Ltd's EV/EBITDA ratio for today is 15.28.

TEL' s EV-to-EBITDA Range Over the Past 10 Years
Min: -4.6   Max: 28.1
Current: 15.28

-4.6
28.1

During the past 13 years, the highest EV/EBITDA Ratio of TE Connectivity Ltd was 28.10. The lowest was -4.60. And the median was 10.30.

TEL's EV-to-EBITDA is ranked lower than
63% of the 2052 Companies
in the Global Electronic Components industry.

( Industry Median: 11.11 vs. TEL: 15.28 )

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, TE Connectivity Ltd's stock price is $75.03. TE Connectivity Ltd's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $5.72. Therefore, TE Connectivity Ltd's P/E Ratio for today is 13.12.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

TE Connectivity Ltd's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=30065.516/1967
=15.28

TE Connectivity Ltd's current Enterprise Value is $30,066 Mil.
TE Connectivity Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 695 (Mar. 2016 ) + -49 (Jun. 2016 ) + 670 (Sep. 2016 ) + 651 (Dec. 2016 ) = $1,967 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

TE Connectivity Ltd's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=75.03/5.72
=13.12

TE Connectivity Ltd's share price for today is $75.03.
TE Connectivity Ltd's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 1.03 (Mar. 2016 ) + 2.32 (Jun. 2016 ) + 1.23 (Sep. 2016 ) + 1.14 (Dec. 2016 ) = $5.72.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

TE Connectivity Ltd Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
ev2ebitda 17.985.27-3.725.995.797.5014.2610.7011.8914.03

TE Connectivity Ltd Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 10.7013.9015.9014.2411.8912.5210.7313.2814.0314.23
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