GURUFOCUS.COM » STOCK LIST » Technology » Hardware » TE Connectivity Ltd (NYSE:TEL) » Definitions » PS Ratio

TE Connectivity (TE Connectivity) PS Ratio : 2.73 (As of Apr. 25, 2024)


View and export this data going back to 2007. Start your Free Trial

What is TE Connectivity PS Ratio?

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, TE Connectivity's share price is $138.82. TE Connectivity's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $50.78. Hence, TE Connectivity's PS Ratio for today is 2.73.

Warning Sign:

TE Connectivity Ltd stock PS Ratio (=2.76) is close to 2-year high of 2.86

The historical rank and industry rank for TE Connectivity's PS Ratio or its related term are showing as below:

TEL' s PS Ratio Range Over the Past 10 Years
Min: 1.42   Med: 2.36   Max: 3.69
Current: 2.75

During the past 13 years, TE Connectivity's highest PS Ratio was 3.69. The lowest was 1.42. And the median was 2.36.

TEL's PS Ratio is ranked worse than
68.62% of 2454 companies
in the Hardware industry
Industry Median: 1.48 vs TEL: 2.75

TE Connectivity's Revenue per Sharefor the three months ended in Dec. 2023 was $12.24. Its Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $50.78.

Warning Sign:

TE Connectivity Ltd revenue growth has slowed down over the past 12 months.

During the past 12 months, the average Revenue per Share Growth Rate of TE Connectivity was 0.40% per year. During the past 3 years, the average Revenue per Share Growth Rate was 11.30% per year. During the past 5 years, the average Revenue per Share Growth Rate was 6.30% per year. During the past 10 years, the average Revenue per Share Growth Rate was 6.70% per year.

During the past 13 years, TE Connectivity's highest 3-Year average Revenue per Share Growth Rate was 11.40% per year. The lowest was -3.30% per year. And the median was 4.50% per year.

Back to Basics: PS Ratio


TE Connectivity PS Ratio Historical Data

The historical data trend for TE Connectivity's PS Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

TE Connectivity PS Ratio Chart

TE Connectivity Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.36 2.67 3.06 2.20 2.44

TE Connectivity Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.27 2.55 2.73 2.44 2.77

Competitive Comparison of TE Connectivity's PS Ratio

For the Electronic Components subindustry, TE Connectivity's PS Ratio, along with its competitors' market caps and PS Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


TE Connectivity's PS Ratio Distribution in the Hardware Industry

For the Hardware industry and Technology sector, TE Connectivity's PS Ratio distribution charts can be found below:

* The bar in red indicates where TE Connectivity's PS Ratio falls into.



TE Connectivity PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

TE Connectivity's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=138.82/50.784
=2.73

TE Connectivity's Share Price of today is $138.82.
TE Connectivity's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $50.78.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


TE Connectivity  (NYSE:TEL) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


TE Connectivity PS Ratio Related Terms

Thank you for viewing the detailed overview of TE Connectivity's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


TE Connectivity (TE Connectivity) Business Description

Traded in Other Exchanges
N/A
Address
Muhlenstrasse 26, Schaffhausen, CHE, CH-8200
TE Connectivity is the largest electrical connector supplier in the world, supplying interconnect and sensor solutions to the transportation, industrial, and communications markets. With operations in 150 countries and over 500,000 stock-keeping units, TE has a broad portfolio that forms the electrical architecture of its end customers' cutting-edge innovations.
Executives
Terrence R Curtin director, officer: EVP & Chief Financial Officer C/O TYCO ELECTRONICS LTD., 1050 WESTLAKES DRIVE, BERWYN PA 19312
John S Jenkins officer: EVP & General Counsel 1050 WESTLAKES DRIVE, BERWYN PA 19312
Heath A Mitts officer: EVP & Chief Financial Officer 1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
Malavika Sagar officer: SVP, Chief Human Resources Off 1050 WESTLAKES DRIVE, BERWYN PA 19312
Jean-pierre Clamadieu director 1050 WESTLAKES DRIVE, BERWYN PA 19312
Shadrak W Kroeger officer: Pres., Communications Solution 1050 WESTLAKES DRIVE, BERWYN PA 19312
Abhijit Y Talwalkar director ONE AMD PLACE, PO BOX 3453, SUNNYVALE CA 94088
Tim Murphy officer: SVP & CHRO 1050 WESTLAKES DRIVE, BERWYN PA 19312
Thomas J Lynch director, officer: Chief Executive Officer 7 LAKEVIEW DRIVE, NEWTOWN PA 19840
Syaru Shirley Lin director
Robert J Ott officer: Sr VP & Controller C/O TYCO ELECTRONICS LTD, 1050 WESTLAKES DRIVE, BERWYN PA 19312
Steven T Merkt officer: President, Transportation Sol. 1050 WESTLAKES DRIVE, BERWYN PA 19312
Daniel J Phelan director C/O TYCO ELECTRONICS LTD., 1050 WESTLAKES DRIVE, BERWYN PA 19312
Aaron Kyle Stucki officer: Pres. Communications Solutions 1050 WESTLAKES DRIVE, BERWYN PA 19312
Eric Resch director, officer: SVP and Tax Officer C/O TYCO ELECTRONICS LTD., 1050 WESTLAKES DRIVE, BERWYN PA 19312