Is TE Connectivity Plc overvalued or undervalued?

As of 17 October 2025, the valuation grade for TE Connectivity Plc has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued, with a P/E ratio of 40.30, significantly higher than the industry average, and an EV to EBITDA ratio of 16.88, which also suggests a premium valuation compared to its peers. Notably, the PEG ratio is not applicable, further emphasizing the challenges in justifying its current price based on growth expectations.
In comparison to its peers, TE Connectivity Plc's valuation metrics stand out; for instance, its P/E ratio is much higher than the industry average, indicating that investors are paying a premium for its earnings. The stock has performed well recently, with a year-to-date return of 55.96% compared to the S&P 500's 13.30%, reflecting strong market sentiment, although the long-term 10-year return of 106.92% trails behind the S&P 500's 227.77%. This performance may suggest investor enthusiasm, yet the elevated valuation ratios imply caution for potential investors.