Teradyne, Inc.

NasdaqGS:TER Stock Report

Market Cap: US$16.7b

Teradyne Valuation

Is TER 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 TER when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TER ($103.58) is trading below our estimate of fair value ($123.61)

Significantly Below Fair Value: TER 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 TER?

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

The above table shows the Price to Earnings ratio for TER. This is calculated by dividing TER's market cap by their current earnings.
What is TER's PE Ratio?
PE Ratio32.9x
EarningsUS$513.17m
Market CapUS$16.74b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TER vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average66.6x
ENTG Entegris
66x50.4%US$15.0b
ONTO Onto Innovation
43.7x30.7%US$8.0b
ENPH Enphase Energy
139.4x46.2%US$8.3b
AMKR Amkor Technology
17.1x30.7%US$6.3b
TER Teradyne
32.9x21.7%US$16.7b

Price-To-Earnings vs Peers: TER is good value based on its Price-To-Earnings Ratio (32.9x) compared to the peer average (66.6x).

Price to Earnings Ratio vs Industry

How does TER's PE Ratio compare vs other companies in the US Semiconductor Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TOYO TOYO
4.5xn/aUS$148.87m
SQNS Sequans Communications
1.6x-156.5%US$67.23m
No more companies available in this PE range
TER 32.9xIndustry Avg. 30.3xNo. of Companies9PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TER is expensive based on its Price-To-Earnings Ratio (32.9x) compared to the US Semiconductor industry average (30.3x).

Price to Earnings Ratio vs Fair Ratio

What is TER'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.

TER PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.9x
Fair PE Ratio29x

Price-To-Earnings vs Fair Ratio: TER is expensive based on its Price-To-Earnings Ratio (32.9x) compared to the estimated Fair Price-To-Earnings Ratio (29x).

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 TER forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$103.58
US$134.62
+30.0%
12.8%US$180.00US$110.00n/a18
Nov ’25US$106.49
US$136.17
+27.9%
12.5%US$180.00US$110.00n/a18
Oct ’25US$128.99
US$143.95
+11.6%
10.4%US$180.00US$120.00n/a18
Sep ’25US$136.73
US$143.95
+5.3%
10.4%US$180.00US$120.00n/a18
Aug ’25US$121.74
US$145.63
+19.6%
10.0%US$180.00US$120.00n/a18
Jul ’25US$147.77
US$131.01
-11.3%
14.8%US$170.00US$100.00n/a19
Jun ’25US$140.94
US$126.33
-10.4%
13.7%US$161.00US$100.00n/a18
May ’25US$113.74
US$120.36
+5.8%
9.5%US$140.00US$100.00n/a19
Apr ’25US$112.95
US$113.15
+0.2%
11.3%US$140.00US$90.00n/a19
Mar ’25US$105.88
US$112.15
+5.9%
11.7%US$140.00US$90.00n/a19
Feb ’25US$95.14
US$111.15
+16.8%
12.7%US$140.00US$90.00n/a19
Jan ’25US$108.52
US$109.99
+1.4%
16.7%US$147.00US$88.00n/a19
Dec ’24US$93.86
US$109.73
+16.9%
16.9%US$147.00US$88.00n/a19
Nov ’24US$82.76
US$110.52
+33.5%
16.8%US$147.00US$88.00US$106.4919
Oct ’24US$100.46
US$126.28
+25.7%
11.2%US$157.00US$105.00US$128.9919
Sep ’24US$108.46
US$124.23
+14.5%
13.4%US$157.00US$87.00US$136.7319
Aug ’24US$111.23
US$123.05
+10.6%
14.2%US$157.00US$87.00US$121.7419
Jul ’24US$111.33
US$110.42
-0.8%
16.3%US$157.00US$80.00US$147.7719
Jun ’24US$103.10
US$109.63
+6.3%
16.9%US$157.00US$80.00US$140.9419
May ’24US$92.30
US$110.38
+19.6%
16.7%US$157.00US$80.00US$113.7419
Apr ’24US$107.51
US$114.07
+6.1%
15.4%US$167.00US$90.00US$112.9520
Mar ’24US$101.38
US$113.65
+12.1%
15.8%US$167.00US$90.00US$105.8819
Feb ’24US$107.99
US$112.96
+4.6%
15.8%US$167.00US$90.00US$95.1419
Jan ’24US$87.35
US$103.83
+18.9%
17.3%US$167.00US$84.00US$108.5219
Dec ’23US$92.29
US$103.83
+12.5%
17.3%US$167.00US$84.00US$93.8619
Nov ’23US$82.22
US$103.83
+26.3%
17.3%US$167.00US$84.00US$82.7619

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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