* Note: Prices are in Million (M) USD.
Description:
Amphenol Corporation is a major producer of electronic and fiber optic connectors, cable and interconnect systems such as coaxial cables. Amphenol is a portmanteau from the corporation's original name, American Phenolic Corp.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $3,207 M
Debt : $8,062 M
EBITDA : $3,354 M
Net Debt (Debt - Cash): $4,855 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Electronic components
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 34.13
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $871 M
Average Revenue: $6,505 M
Revenue Converted To Free Cash Flow (%): 13.4%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $15,223 M
Revenue 4 Years Ago (2020-12-31): $8,599 M
Last 5 Years Average Revenue Growth: 15%
Since Revenue Growth is between 15 - 20, 4 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $1,264 M
Share Count 5 Years Ago (2020-12-31): $1,230 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $3.52
Trailing 12-Month Earnings Per Share (EPS): $3.04
Average Earnings Per Share (EPS): $3.28
Dividend Per Share (DPS): $1
Payout Ratio: 20%
Dividend Yield: 1%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 24.5%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $112
52-Week Low: $54
Threshold Price (15% Above 52-Week Low): $62
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $127,354 M
Since Market Cap is between 100B - 500B, 3 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 4% exposure of Total Portfolio.
Value-Trade has assigned 23 points to above Amphenol Corporation (APH) stock.
Last 9 Years Avg PE 38.48, Fair Value PE 25, Industry Based PE 17, Growth Based PE 15, RCFC Based PE 22.72, ROE Based PE 29.63, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 23.56. Value-Trades has assined P/E value 23.56. Since an average (Current Year EPS + Next Year EPS) earning per share is $3.28.
The fair value of Amphenol Corporation (APH) stock should be (23.56 x $3.28) = $77.27.
