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 40.78 is considered Overvalued compared with the five-year average of 28.56. The fair price of Teradyne Inc (TER) is between 153.99 to 207.08 according to relative valuation methord. Compared to the current price of 228.84 USD , Teradyne Inc is Overvalued By 10.51%.
Relative Value
Fair Zone
153.99-207.08
Current Price：228.84
10.51%
Overvalued
40.78
PE
1Y
3Y
5Y
30.18
EV/EBITDA
Teradyne Inc. (TER) has a current EV/EBITDA of 30.18. The 5-year average EV/EBITDA is 19.75. The thresholds are as follows: Strongly Undervalued below 11.65, Undervalued between 11.65 and 15.70, Fairly Valued between 23.81 and 15.70, Overvalued between 23.81 and 27.86, and Strongly Overvalued above 27.86. The current Forward EV/EBITDA of 30.18 falls within the Strongly Overvalued range.
34.40
EV/EBIT
Teradyne Inc. (TER) has a current EV/EBIT of 34.40. The 5-year average EV/EBIT is 22.49. The thresholds are as follows: Strongly Undervalued below 12.05, Undervalued between 12.05 and 17.27, Fairly Valued between 27.71 and 17.27, Overvalued between 27.71 and 32.94, and Strongly Overvalued above 32.94. The current Forward EV/EBIT of 34.40 falls within the Strongly Overvalued range.
8.66
PS
Teradyne Inc. (TER) has a current PS of 8.66. The 5-year average PS is 5.70. The thresholds are as follows: Strongly Undervalued below 3.76, Undervalued between 3.76 and 4.73, Fairly Valued between 6.67 and 4.73, Overvalued between 6.67 and 7.64, and Strongly Overvalued above 7.64. The current Forward PS of 8.66 falls within the Strongly Overvalued range.
36.42
P/OCF
Teradyne Inc. (TER) has a current P/OCF of 36.42. The 5-year average P/OCF is 25.99. The thresholds are as follows: Strongly Undervalued below 11.70, Undervalued between 11.70 and 18.85, Fairly Valued between 33.13 and 18.85, Overvalued between 33.13 and 40.27, and Strongly Overvalued above 40.27. The current Forward P/OCF of 36.42 falls within the Overvalued range.
46.34
P/FCF
Teradyne Inc. (TER) has a current P/FCF of 46.34. The 5-year average P/FCF is 36.20. The thresholds are as follows: Strongly Undervalued below 8.13, Undervalued between 8.13 and 22.17, Fairly Valued between 50.24 and 22.17, Overvalued between 50.24 and 64.27, and Strongly Overvalued above 64.27. The current Forward P/FCF of 46.34 falls within the Historic Trend Line -Fairly Valued range.
Teradyne Inc (TER) has a current Price-to-Book (P/B) ratio of 12.01. Compared to its 3-year average P/B ratio of 6.81 , the current P/B ratio is approximately 76.42% higher. Relative to its 5-year average P/B ratio of 7.21, the current P/B ratio is about 66.48% higher. Teradyne Inc (TER) has a Forward Free Cash Flow (FCF) yield of approximately 1.41%. Compared to its 3-year average FCF yield of 2.68%, the current FCF yield is approximately -47.58% lower. Relative to its 5-year average FCF yield of 3.32% , the current FCF yield is about -57.72% lower.
12.01
P/B
Median3y
6.81
Median5y
7.21
1.41
FCF Yield
Median3y
2.68
Median5y
3.32
Competitors Valuation Multiple
The average P/S ratio for TER's competitors is 4.62, providing a benchmark for relative valuation. Teradyne Inc Corp (TER) exhibits a P/S ratio of 8.66, which is 87.44% above the industry average. Given its robust revenue growth of 4.33%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of TER increased by 97.63% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 35.12 to 75.37.
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.
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Frequently Asked Questions
Is Teradyne Inc (TER) currently overvalued or undervalued?
Teradyne Inc (TER) is now in the Overvalued zone, suggesting that its current forward PE ratio of 40.78 is considered Overvalued compared with the five-year average of 28.56. The fair price of Teradyne Inc (TER) is between 153.99 to 207.08 according to relative valuation methord. Compared to the current price of 228.84 USD , Teradyne Inc is Overvalued By 10.51% .
What is Teradyne Inc (TER) fair value?
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. The fair price of Teradyne Inc (TER) is between 153.99 to 207.08 according to relative valuation methord.
How does TER's valuation metrics compare to the industry average?
The average P/S ratio for TER's competitors is 4.62, providing a benchmark for relative valuation. Teradyne Inc Corp (TER) exhibits a P/S ratio of 8.66, which is 87.44% above the industry average. Given its robust revenue growth of 4.33%, this premium appears unsustainable.
What is the current P/B ratio for Teradyne Inc (TER) as of Jan 07 2026?
As of Jan 07 2026, Teradyne Inc (TER) has a P/B ratio of 12.01. This indicates that the market values TER at 12.01 times its book value.
What is the current FCF Yield for Teradyne Inc (TER) as of Jan 07 2026?
As of Jan 07 2026, Teradyne Inc (TER) has a FCF Yield of 1.41%. This means that for every dollar of Teradyne Inc’s market capitalization, the company generates 1.41 cents in free cash flow.
What is the current Forward P/E ratio for Teradyne Inc (TER) as of Jan 07 2026?
As of Jan 07 2026, Teradyne Inc (TER) has a Forward P/E ratio of 40.78. This means the market is willing to pay $40.78 for every dollar of Teradyne Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Teradyne Inc (TER) as of Jan 07 2026?
As of Jan 07 2026, Teradyne Inc (TER) has a Forward P/S ratio of 8.66. This means the market is valuing TER at $8.66 for every dollar of expected revenue over the next 12 months.