TER Relative Valuation
TER'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, TER is overvalued; if below, it's undervalued.
Historical Valuation
Teradyne Inc (TER) is now in the Overvalued zone, suggesting that its current forward PE ratio of 38.40 is considered Overvalued compared with the five-year average of 28.29. The fair price of Teradyne Inc (TER) is between 138.14 to 185.33 according to relative valuation methord. Compared to the current price of 194.61 USD , Teradyne Inc is Overvalued By 5.01%.
Relative Value
Fair Zone
138.14-185.33
Current Price：194.61
5.01%
Overvalued
38.40
PE
1Y
3Y
5Y
Trailing
Forward
27.74
EV/EBITDA
Teradyne Inc. (TER) has a current EV/EBITDA of 27.74. The 5-year average EV/EBITDA is 19.55. The thresholds are as follows: Strongly Undervalued below 11.73, Undervalued between 11.73 and 15.64, Fairly Valued between 23.46 and 15.64, Overvalued between 23.46 and 27.36, and Strongly Overvalued above 27.36. The current Forward EV/EBITDA of 27.74 falls within the Strongly Overvalued range.
31.54
EV/EBIT
Teradyne Inc. (TER) has a current EV/EBIT of 31.54. The 5-year average EV/EBIT is 22.23. The thresholds are as follows: Strongly Undervalued below 12.04, Undervalued between 12.04 and 17.13, Fairly Valued between 27.32 and 17.13, Overvalued between 27.32 and 32.42, and Strongly Overvalued above 32.42. The current Forward EV/EBIT of 31.54 falls within the Overvalued range.
7.93
PS
Teradyne Inc. (TER) has a current PS of 7.93. The 5-year average PS is 5.66. The thresholds are as follows: Strongly Undervalued below 3.84, Undervalued between 3.84 and 4.75, Fairly Valued between 6.57 and 4.75, Overvalued between 6.57 and 7.48, and Strongly Overvalued above 7.48. The current Forward PS of 7.93 falls within the Strongly Overvalued range.
33.33
P/OCF
Teradyne Inc. (TER) has a current P/OCF of 33.33. The 5-year average P/OCF is 25.74. The thresholds are as follows: Strongly Undervalued below 11.55, Undervalued between 11.55 and 18.65, Fairly Valued between 32.83 and 18.65, Overvalued between 32.83 and 39.93, and Strongly Overvalued above 39.93. The current Forward P/OCF of 33.33 falls within the Overvalued range.
42.41
P/FCF
Teradyne Inc. (TER) has a current P/FCF of 42.41. The 5-year average P/FCF is 35.86. The thresholds are as follows: Strongly Undervalued below 7.69, Undervalued between 7.69 and 21.78, Fairly Valued between 49.95 and 21.78, Overvalued between 49.95 and 64.04, and Strongly Overvalued above 64.04. The current Forward P/FCF of 42.41 falls within the Historic Trend Line -Fairly Valued range.
Teradyne Inc (TER) has a current Price-to-Book (P/B) ratio of 11.29. Compared to its 3-year average P/B ratio of 6.66 , the current P/B ratio is approximately 69.43% higher. Relative to its 5-year average P/B ratio of 7.19, the current P/B ratio is about 56.99% higher. Teradyne Inc (TER) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.75%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.35% , the current FCF yield is about -100.00% lower.
11.29
P/B
Median3y
6.66
Median5y
7.19
1.54
FCF Yield
Median3y
2.75
Median5y
3.35
Competitors Valuation Multiple
The average P/S ratio for TER's competitors is , providing a benchmark for relative valuation. Teradyne Inc Corp (TER) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 4.33%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of TER increased by 57.74% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 41.28 to 72.13.
The secondary factor is the Revenue Growth, contributed 4.33%to the performance.
Overall, the performance of TER in the past 1 year is driven by P/E Change. Which is more unsustainable.
People Also Watch
FAQ
Is Teradyne Inc (TER) currently overvalued or undervalued?
What is Teradyne Inc (TER) fair value?
How does TER's valuation metrics compare to the industry average?
What is the current P/B ratio for Teradyne Inc (TER) as of Dec 05 2025?
What is the current FCF Yield for Teradyne Inc (TER) as of Dec 05 2025?
What is the current Forward P/E ratio for Teradyne Inc (TER) as of Dec 05 2025?