Teradyne, Inc.

DB:TEY Stock Report

Market Cap: €16.9b

Teradyne Valuation

Is TEY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of TEY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TEY (€100.36) is trading below our estimate of fair value (€123.62)

Significantly Below Fair Value: TEY is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TEY?

Key metric: As TEY is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for TEY. This is calculated by dividing TEY's market cap by their current earnings.
What is TEY's PE Ratio?
PE Ratio34.3x
EarningsUS$513.17m
Market CapUS$17.62b

Price to Earnings Ratio vs Peers

How does TEY's PE Ratio compare to its peers?

The above table shows the PE ratio for TEY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.5x
WAF Siltronic
14.8x-17.0%€1.4b
AIXA AIXTRON
12.8x6.2%€1.5b
SMHN SÜSS MicroTec
21.5x-3.4%€924.2m
S92 SMA Solar Technology
5.1x28.8%€411.5m
TEY Teradyne
34.3x21.7%€17.6b

Price-To-Earnings vs Peers: TEY is expensive based on its Price-To-Earnings Ratio (34.3x) compared to the peer average (13.5x).

Price to Earnings Ratio vs Industry

How does TEY's PE Ratio compare vs other companies in the European Semiconductor Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
TEY 34.3xIndustry Avg. 14.8xNo. of Companies7PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TEY is expensive based on its Price-To-Earnings Ratio (34.3x) compared to the European Semiconductor industry average (14.8x).

Price to Earnings Ratio vs Fair Ratio

What is TEY's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TEY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio34.3x
Fair PE Ratio24.4x

Price-To-Earnings vs Fair Ratio: TEY is expensive based on its Price-To-Earnings Ratio (34.3x) compared to the estimated Fair Price-To-Earnings Ratio (24.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst TEY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€100.36
€126.79
+26.3%
12.8%€169.52€103.60n/a18
Nov ’25€96.54
€126.15
+30.7%
12.5%€166.75€101.90n/a18
Oct ’25€119.36
€131.70
+10.3%
10.4%€164.68€109.79n/a18
Sep ’25€119.54
€131.70
+10.2%
10.4%€164.68€109.79n/a18
Aug ’25€120.34
€134.12
+11.5%
10.0%€165.78€110.52n/a18
Jul ’25€137.44
€122.01
-11.2%
14.8%€158.32€93.13n/a19
Jun ’25€126.82
€116.44
-8.2%
13.7%€148.39€92.17n/a18
May ’25€110.00
€112.52
+2.3%
9.5%€130.87€93.48n/a19
Apr ’25€102.08
€105.35
+3.2%
11.3%€130.34€83.79n/a19
Mar ’25€94.73
€104.13
+9.9%
11.7%€129.99€83.57n/a19
Feb ’25€87.00
€102.26
+17.5%
12.7%€128.80€82.80n/a19
Jan ’25€98.54
€101.89
+3.4%
16.7%€136.17€81.51n/a19
Dec ’24€85.56
€100.82
+17.8%
16.9%€135.06€80.85n/a19
Nov ’24€77.75
€104.60
+34.5%
16.8%€139.12€83.28€96.5419
Oct ’24€95.10
€119.49
+25.6%
11.2%€148.55€99.35€119.3619
Sep ’24€99.49
€113.55
+14.1%
13.4%€143.50€79.52€119.5419
Aug ’24€103.50
€111.62
+7.8%
14.2%€142.41€78.92€120.3419
Jul ’24€102.66
€101.98
-0.7%
16.3%€145.01€73.89€137.4419
Jun ’24€92.70
€101.01
+9.0%
16.9%€144.66€73.71€126.8219
May ’24€81.40
€100.17
+23.1%
16.7%€142.48€72.60€110.0019
Apr ’24€97.60
€106.01
+8.6%
15.4%€155.21€83.65€102.0820
Mar ’24€94.21
€105.27
+11.7%
15.8%€154.69€83.37€94.7319
Feb ’24€93.14
€103.96
+11.6%
15.8%€153.69€82.83€87.0019
Jan ’24€81.03
€104.17
+28.6%
17.3%€167.55€84.28€98.5419
Dec ’23€88.36
€104.17
+17.9%
17.3%€167.55€84.28€85.5619
Nov ’23€83.20
€104.17
+25.2%
17.3%€167.55€84.28€77.7519

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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