Is TE Connectivity Ltd. overvalued or undervalued?

As of 22 January 2025, the valuation grade for TE Connectivity Ltd. has moved from fair to expensive, indicating a shift in perception regarding its market value. The company appears overvalued based on its current metrics, which include a P/E ratio of 33, a Price to Book Value of 4.07, and an EV to EBITDA of 13.38. In comparison, peers such as Micron Technology, Inc. have a P/E of 25.58 and an EV to EBITDA of 10.17, while QUALCOMM, Inc. shows a much lower P/E of 14.62 and an EV to EBITDA of 12.69, highlighting the relative overvaluation of TE Connectivity.
In terms of recent performance, TE Connectivity has outperformed the S&P 500 with a year-to-date return of 52.00% compared to the index's 12.22%, and a one-year return of 48.92% versus 17.14%. However, the significant discrepancy in valuation ratios suggests that the stock may not be justified at its current price levels.