Teradyne (TER): Assessing Valuation as New ETS-800 D20 Strengthens Product Line and Market Visibility

Teradyne (TER) has just unveiled the ETS-800 D20, expanding its high-performance test system offerings for power semiconductors. The company is also making waves at this year's Semicon West conference, where it is highlighting its ongoing innovation and market focus.

See our latest analysis for Teradyne.

Teradyne’s launch of the ETS-800 D20 and its appearances at major industry conferences have drawn renewed attention to the stock, which has shown clear signs of building momentum. With a 30-day share price return of 20.85% and a strong 47.1% gain over the past quarter, investors are showing increased optimism. The company’s 1-year total return of 10.13% suggests longer-term holders have also been rewarded, especially given an impressive 81.18% total return over three years.

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With shares posting robust gains but now trading near analyst price targets, the big question is whether Teradyne is undervalued given its growth or if the recent momentum has already factored in future upside.

Most Popular Narrative: 10.8% Overvalued

Compared to the recent closing price of $138.16, the most widely followed narrative estimates Teradyne’s fair value at $124.69 per share. This suggests that enthusiasm has outpaced the company’s earnings outlook. Here is what stands out as a driver behind this view:

Teradyne expects significant future growth potential from AI accelerators, robotics, and semiconductor automation, which are being driven by long-term industry themes such as AI, verticalization, and electrification. These areas are likely to boost future revenue.

Read the complete narrative.

Want to discover what powers this price estimate? There is a big revenue growth forecast and a bold profit margin jump factored in, plus a surprising take on future valuation multiples. Think the story is all about sector hype? Dive deeper to find the real numbers that set this price target.

Result: Fair Value of $124.69 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing trade tensions and persistent challenges in robotics growth could still disrupt Teradyne’s optimistic trajectory and introduce volatility in near-term earnings.

Find out about the key risks to this Teradyne narrative.

Build Your Own Teradyne Narrative

If you want a different perspective or prefer to dig into the numbers yourself, building your own view of Teradyne’s story takes just a few minutes with our tools. Go ahead and Do it your way.

A good starting point is our analysis highlighting 1 key reward investors are optimistic about regarding Teradyne.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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