TDC PE Ratio & Valuation,Is TDC Overvalued

TDC Relative Valuation

TDC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, TDC is overvalued; if below, it's undervalued.

Historical Valuation

Teradata Corp (TDC) is now in the Undervalued zone, suggesting that its current forward PE ratio of 11.98 is considered Undervalued compared with the five-year average of 19.48. The fair price of Teradata Corp (TDC) is between 37.78 to 67.95 according to relative valuation methord. Compared to the current price of 31.46 USD , Teradata Corp is Undervalued By 16.73%.

Relative Value

Fair Zone

37.78-67.95

Current Price：31.46

16.73%

Undervalued

11.98

6.62

EV/EBITDA

Teradata Corp. (TDC) has a current EV/EBITDA of 6.62. The 5-year average EV/EBITDA is 8.68. The thresholds are as follows: Strongly Undervalued below 4.31, Undervalued between 4.31 and 6.50, Fairly Valued between 10.87 and 6.50, Overvalued between 10.87 and 13.05, and Strongly Overvalued above 13.05. The current Forward EV/EBITDA of 6.62 falls within the Historic Trend Line -Fairly Valued range.

8.26

EV/EBIT

Teradata Corp. (TDC) has a current EV/EBIT of 8.26. The 5-year average EV/EBIT is 12.78. The thresholds are as follows: Strongly Undervalued below 4.39, Undervalued between 4.39 and 8.59, Fairly Valued between 16.97 and 8.59, Overvalued between 16.97 and 21.16, and Strongly Overvalued above 21.16. The current Forward EV/EBIT of 8.26 falls within the Undervalued range.

1.69

Teradata Corp. (TDC) has a current PS of 1.69. The 5-year average PS is 2.11. The thresholds are as follows: Strongly Undervalued below 1.02, Undervalued between 1.02 and 1.57, Fairly Valued between 2.65 and 1.57, Overvalued between 2.65 and 3.20, and Strongly Overvalued above 3.20. The current Forward PS of 1.69 falls within the Historic Trend Line -Fairly Valued range.

8.68

P/OCF

Teradata Corp. (TDC) has a current P/OCF of 8.68. The 5-year average P/OCF is 9.93. The thresholds are as follows: Strongly Undervalued below 4.28, Undervalued between 4.28 and 7.10, Fairly Valued between 12.75 and 7.10, Overvalued between 12.75 and 15.57, and Strongly Overvalued above 15.57. The current Forward P/OCF of 8.68 falls within the Historic Trend Line -Fairly Valued range.

9.39

P/FCF

Teradata Corp. (TDC) has a current P/FCF of 9.39. The 5-year average P/FCF is 10.82. The thresholds are as follows: Strongly Undervalued below 4.58, Undervalued between 4.58 and 7.70, Fairly Valued between 13.95 and 7.70, Overvalued between 13.95 and 17.07, and Strongly Overvalued above 17.07. The current Forward P/FCF of 9.39 falls within the Historic Trend Line -Fairly Valued range.

Teradata Corp (TDC) has a current Price-to-Book (P/B) ratio of 12.70. Compared to its 3-year average P/B ratio of 26.13 , the current P/B ratio is approximately -51.38% higher. Relative to its 5-year average P/B ratio of 20.85, the current P/B ratio is about -39.09% higher. Teradata Corp (TDC) has a Forward Free Cash Flow (FCF) yield of approximately 10.26%. Compared to its 3-year average FCF yield of 9.69%, the current FCF yield is approximately 5.89% lower. Relative to its 5-year average FCF yield of 9.31% , the current FCF yield is about 10.26% lower.

12.70

P/B

Median3y

26.13

Median5y

20.85

10.26

FCF Yield

Median3y

9.69

Median5y

9.31

Competitors Valuation Multiple

The average P/S ratio for TDC's competitors is 3.30, providing a benchmark for relative valuation. Teradata Corp Corp (TDC) exhibits a P/S ratio of 1.69, which is -48.84% above the industry average. Given its robust revenue growth of -5.45%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of TDC decreased by 1.41% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 7.27 to 9.62.

The secondary factor is the Revenue Growth, contributed -5.45%to the performance.

Overall, the performance of TDC in the past 1 year is driven by Margin Expansion. Which is more sustainable.

-5.45%

440.00M → 416.00M

Revenue Growth

32.32%

7.27 → 9.62

Margin Expansion

-28.28%

34.24 → 24.56

P/E Change

-1.41%

31.91 → 31.46

Mkt Cap Growth

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Frequently Asked Questions

Is Teradata Corp (TDC) currently overvalued or undervalued?

What is Teradata Corp (TDC) fair value?

TDC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Teradata Corp (TDC) is between 37.78 to 67.95 according to relative valuation methord.

How does TDC's valuation metrics compare to the industry average?

What is the current P/B ratio for Teradata Corp (TDC) as of Jan 08 2026?

As of Jan 08 2026, Teradata Corp (TDC) has a P/B ratio of 12.70. This indicates that the market values TDC at 12.70 times its book value.

What is the current FCF Yield for Teradata Corp (TDC) as of Jan 08 2026?

As of Jan 08 2026, Teradata Corp (TDC) has a FCF Yield of 10.26%. This means that for every dollar of Teradata Corp’s market capitalization, the company generates 10.26 cents in free cash flow.

What is the current Forward P/E ratio for Teradata Corp (TDC) as of Jan 08 2026?

As of Jan 08 2026, Teradata Corp (TDC) has a Forward P/E ratio of 11.98. This means the market is willing to pay $11.98 for every dollar of Teradata Corp’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Teradata Corp (TDC) as of Jan 08 2026?

As of Jan 08 2026, Teradata Corp (TDC) has a Forward P/S ratio of 1.69. This means the market is valuing TDC at $1.69 for every dollar of expected revenue over the next 12 months.

TDC Valuation