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GuruFocus has detected 3 Warning Signs with TE Connectivity Ltd $TEL.
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TE Connectivity Ltd (NYSE:TEL)
Price-to-Free-Cash-Flow Ratio
20.78 (As of Today)

As of today, TE Connectivity Ltd's share price is $75.27. TE Connectivity Ltd's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2016 was $3.62. Hence, TE Connectivity Ltd's Price-to-Free-Cash-Flow Ratio for today is 20.78.

TEL' s Price-to-Free-Cash-Flow ratio Range Over the Past 10 Years
Min: 3.9   Max: 269.84
Current: 20.79

3.9
269.84

During the past 13 years, TE Connectivity Ltd's highest Price-to-Free-Cash-Flow Ratio was 269.84. The lowest was 3.90. And the median was 15.25.

TEL's Price-to-Free-Cash-Flow ratio is ranked lower than
60% of the 1000 Companies
in the Global Electronic Components industry.

( Industry Median: 16.00 vs. TEL: 20.79 )

TE Connectivity Ltd's Free Cash Flow per Share for the three months ended in Dec. 2016 was $0.76. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2016 was $3.62.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of TE Connectivity Ltd was -5.30% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 0.40% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 3.50% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 11.10% per year.

During the past 13 years, TE Connectivity Ltd's highest 3-Year average Free Cash Flow per Share Growth Rate was 51.60% per year. The lowest was 0.00% per year. And the median was 6.90% per year.


Definition

TE Connectivity Ltd's Price-to-Free-Cash-Flow ratio for today is calculated as

Price-to-Free-Cash-Flow Ratio=Share Price/Free Cash Flow per Share (TTM)
=75.27/3.623
=20.78

TE Connectivity Ltd's Share Price of today is $75.27.
TE Connectivity Ltd's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2016 was -0.003 (Mar. 2016 ) + 1.573 (Jun. 2016 ) + 1.29 (Sep. 2016 ) + 0.763 (Dec. 2016 ) = $3.62.

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

It can also be calculated from the numbers for the whole company:

Price-to-Free-Cash-Flow Ratio=Market Cap/Free Cash Flow

Explanation

Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.

In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.


Be Aware

In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management’s decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.


Related Terms

Free Cash Flow, Free Cash Flow per Share, P/S Ratio, P/B Ratio, 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
pfcf 28.1235.6010.2110.3610.4010.3614.9615.9216.7818.37

TE Connectivity Ltd Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
pfcf 15.9219.4120.4316.8416.7816.8821.7017.2718.3719.12
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