TER Valuation

Teradyne Inc

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118.240

+0.35(0.297%)1D

Overview
Forecast
Valuation
Earnings

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 Fair zone, suggesting that its current forward PE ratio of 30.60 is considered Fairly compared with the five-year average of 27.64. The fair price of Teradyne Inc (TER) is between 87.37 to 125.06 according to relative valuation methord.

Relative Value

Fair Zone

87.37-125.06

Current Price：118.24

Fair

30.60

Trailing

Forward

21.55

EV/EBITDA

Teradyne Inc. (TER) has a current EV/EBITDA of 21.55. The 5-year average EV/EBITDA is 19.07. The thresholds are as follows: Strongly Undervalued below 11.07, Undervalued between 11.07 and 15.07, Fairly Valued between 23.07 and 15.07, Overvalued between 23.07 and 27.07, and Strongly Overvalued above 27.07. The current Forward EV/EBITDA of 21.55 falls within the Historic Trend Line -Fairly Valued range.

25.97

EV/EBIT

Teradyne Inc. (TER) has a current EV/EBIT of 25.97. The 5-year average EV/EBIT is 21.60. The thresholds are as follows: Strongly Undervalued below 11.11, Undervalued between 11.11 and 16.36, Fairly Valued between 26.85 and 16.36, Overvalued between 26.85 and 32.09, and Strongly Overvalued above 32.09. The current Forward EV/EBIT of 25.97 falls within the Historic Trend Line -Fairly Valued range.

5.86

Teradyne Inc. (TER) has a current PS of 5.86. The 5-year average PS is 5.55. The thresholds are as follows: Strongly Undervalued below 3.73, Undervalued between 3.73 and 4.64, Fairly Valued between 6.46 and 4.64, Overvalued between 6.46 and 7.37, and Strongly Overvalued above 7.37. The current Forward PS of 5.86 falls within the Historic Trend Line -Fairly Valued range.

32.81

P/OCF

Teradyne Inc. (TER) has a current P/OCF of 32.81. The 5-year average P/OCF is 25.02. The thresholds are as follows: Strongly Undervalued below 10.42, Undervalued between 10.42 and 17.72, Fairly Valued between 32.32 and 17.72, Overvalued between 32.32 and 39.62, and Strongly Overvalued above 39.62. The current Forward P/OCF of 32.81 falls within the Overvalued range.

39.51

P/FCF

Teradyne Inc. (TER) has a current P/FCF of 39.51. The 5-year average P/FCF is 34.98. The thresholds are as follows: Strongly Undervalued below 6.04, Undervalued between 6.04 and 20.51, Fairly Valued between 49.45 and 20.51, Overvalued between 49.45 and 63.92, and Strongly Overvalued above 63.92. The current Forward P/FCF of 39.51 falls within the Historic Trend Line -Fairly Valued range.

Teradyne Inc (TER) has a current Price-to-Book (P/B) ratio of 6.63. Compared to its 3-year average P/B ratio of 6.42 , the current P/B ratio is approximately 3.41% higher. Relative to its 5-year average P/B ratio of 7.15, the current P/B ratio is about -7.18% higher. Teradyne Inc (TER) has a Forward Free Cash Flow (FCF) yield of approximately 3.02%. Compared to its 3-year average FCF yield of 3.00%, the current FCF yield is approximately 0.86% lower. Relative to its 5-year average FCF yield of 3.46% , the current FCF yield is about -12.47% lower.

6.63

P/B

Median3y

6.42

Median5y

7.15

3.02

FCF Yield

Median3y

3.00

Median5y

3.46

Competitors Valuation Multiple

The average P/S ratio for TER's competitors is 3.78, providing a benchmark for relative valuation. Teradyne Inc Corp (TER) exhibits a P/S ratio of 5.86, which is 55.12% above the industry average. Given its robust revenue growth of -10.70%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Universal Display Corp

Advanced Energy Industries Inc

3.15

20.98%

5.65B

Performance Decomposition

Market capitalization of TER decreased by 11.53% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 26.95 to 40.98.

The secondary factor is the Revenue Growth, contributed -10.70%to the performance.

Overall, the performance of TER in the past 1 year is driven by P/E Change. Which is more unsustainable.

-10.70%

729.88M → 651.80M

Revenue Growth

-52.90%

25.52 → 12.02

Margin Expansion

52.07%

26.95 → 40.98

P/E Change

-11.53%