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. The company is currently considered overvalued, supported by a P/E ratio of 40.30, an EV/EBITDA of 16.88, and a Price to Book Value that is not specified but is implied to be high given the overall valuation context. In comparison, peers such as the industry average P/E ratio suggest a more favorable valuation landscape, indicating that TE Connectivity is significantly above its peers.
Despite the high valuation, TE Connectivity has demonstrated strong stock performance, with a year-to-date return of 55.96% compared to the S&P 500's 13.30%, and a 3-year return of 99.25% versus the S&P 500's 81.19%. This performance highlights investor confidence, but the elevated valuation ratios suggest that the stock may be priced for perfection, making it less attractive for new investors at current levels.