Amphenol

Methodology

Amphenol's interconnect and cable products serve diverse end markets from military to automotive to industrial, providing more stability than single-industry suppliers. The company's broad diversification and continuous new product development create steady organic growth supplemented by acquisitions. This calculation works well given consistent execution and a disciplined M&A strategy that has compounded shareholder value steadily over decades.

Methodology

Amphenol typically commands premium PEG ratios reflecting consistent execution and steady growth in electronic components. The company's market leadership in interconnects and diversified end-market exposure justify higher multiples than commodity component suppliers. Compare to other electronic component makers and industrial distributors to gauge whether Amphenol's long track record and market breadth warrant its current valuation.

Methodology

Amphenol's modest dividend plays a supporting role to organic and acquisition-driven growth in the total return story. The company balances capital deployment between dividends, share repurchases, and strategic acquisitions in adjacent technologies. PEGY provides additional context, though the primary value drivers remain execution on organic growth and disciplined M&A rather than dividend income.