Teradyne, Inc.

LSE:0LEF Stock Report

Market Cap: US$17.0b

Teradyne Valuation

Is 0LEF undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 0LEF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$106.02
Fair Value
18.0% undervalued intrinsic discount
16
Number of Analysts

Below Fair Value: 0LEF ($86.97) is trading below our estimate of fair value ($106.02)

Significantly Below Fair Value: 0LEF 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 0LEF?

Key metric: As 0LEF is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0LEF. This is calculated by dividing 0LEF's market cap by their current earnings.
What is 0LEF's PE Ratio?
PE Ratio31.3x
EarningsUS$542.37m
Market CapUS$16.98b

Price to Earnings Ratio vs Peers

How does 0LEF's PE Ratio compare to its peers?

The above table shows the PE ratio for 0LEF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.8x
ENTG Entegris
48.4x28.7%US$14.7b
BESI BE Semiconductor Industries
42.6x23.0%€7.7b
6146 Disco
29.7x11.7%JP¥3.6t
ASM ASM International
30.5x15.9%€20.8b
0LEF Teradyne
31.3x22.7%US$17.0b

Price-To-Earnings vs Peers: 0LEF is good value based on its Price-To-Earnings Ratio (31.3x) compared to the peer average (38.3x).

Price to Earnings Ratio vs Industry

How does 0LEF's PE Ratio compare vs other companies in the European Semiconductor Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0LEF 31.3xIndustry Avg. 15.3xNo. of Companies5PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0LEF is expensive based on its Price-To-Earnings Ratio (31.3x) compared to the European Semiconductor industry average (15.3x).

Price to Earnings Ratio vs Fair Ratio

What is 0LEF'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.

0LEF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 0LEF's Price-To-Earnings Fair Ratio for valuation analysis.

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 0LEF forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$88.24
US$137.46
+55.8%
11.4%US$165.00US$100.00n/a16
Mar ’26US$107.59
US$136.14
+26.5%
12.0%US$165.00US$100.00n/a16
Feb ’26US$116.63
US$136.19
+16.8%
11.7%US$165.00US$100.00n/a17
Jan ’26US$125.74
US$137.01
+9.0%
13.2%US$180.00US$111.00n/a18
Dec ’25US$110.00
US$134.62
+22.4%
12.8%US$180.00US$110.00n/a18
Nov ’25US$106.51
US$136.17
+27.8%
12.5%US$180.00US$110.00n/a18
Oct ’25US$128.79
US$143.95
+11.8%
10.4%US$180.00US$120.00n/a18
Sep ’25US$134.85
US$143.95
+6.7%
10.4%US$180.00US$120.00n/a18
Aug ’25US$122.03
US$145.63
+19.3%
10.0%US$180.00US$120.00n/a18
Jul ’25US$147.64
US$131.01
-11.3%
14.8%US$170.00US$100.00n/a19
Jun ’25US$137.40
US$126.33
-8.1%
13.7%US$161.00US$100.00n/a18
May ’25US$113.59
US$120.36
+6.0%
9.5%US$140.00US$100.00n/a19
Apr ’25US$112.48
US$113.15
+0.6%
11.3%US$140.00US$90.00n/a19
Mar ’25US$106.43
US$112.15
+5.4%
11.7%US$140.00US$90.00US$107.5919
Feb ’25US$94.42
US$111.15
+17.7%
12.7%US$140.00US$90.00US$116.6319
Jan ’25US$108.98
US$109.99
+0.9%
16.7%US$147.00US$88.00US$125.7419
Dec ’24US$93.47
US$109.73
+17.4%
16.9%US$147.00US$88.00US$110.0019
Nov ’24US$82.47
US$110.52
+34.0%
16.8%US$147.00US$88.00US$106.5119
Oct ’24US$100.47
US$126.28
+25.7%
11.2%US$157.00US$105.00US$128.7919
Sep ’24US$108.30
US$124.23
+14.7%
13.4%US$157.00US$87.00US$134.8519
Aug ’24US$112.02
US$123.05
+9.8%
14.2%US$157.00US$87.00US$122.0319
Jul ’24US$112.14
US$110.42
-1.5%
16.3%US$157.00US$80.00US$147.6419
Jun ’24US$103.25
US$109.63
+6.2%
16.9%US$157.00US$80.00US$137.4019
May ’24US$90.37
US$110.38
+22.2%
16.7%US$157.00US$80.00US$113.5919
Apr ’24US$107.74
US$114.07
+5.9%
15.4%US$167.00US$90.00US$112.4820
Mar ’24US$101.69
US$113.65
+11.8%
15.8%US$167.00US$90.00US$106.4319
Analyst Price Target
Consensus Narrative from 16 Analysts
US$113.89
Fair Value
23.6% undervalued intrinsic discount
16
Number of Analysts

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/03/11 22:19
End of Day Share Price 2025/03/11 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Teradyne, Inc. is covered by 36 analysts. 16 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Robert MasonBaird
Ishan MajumdarBaptista Research
Christopher MuseBarclays