Assessing Teradata (TDC) Valuation After Mixed Recent Returns And A 15.9% Undervaluation Signal

What Teradata’s recent returns signal for investors

Teradata (TDC) has delivered mixed share price moves, with a roughly 6.8% gain over the past day, a 7.9% decline over the past week, and positive returns over the past month and past 3 months.

At a last close of $30.03, the company has a 1 year total return of about 23.6%. Its 3 year and 5 year total returns are both negative, which may catch the eye of investors comparing shorter and longer time frames.

See our latest analysis for Teradata.

The recent 1 day share price return of 6.75% contrasts with weaker performance over the past week and negative 3 and 5 year total shareholder returns. This suggests that shorter term momentum is improving while longer term results remain under pressure.

If Teradata’s mixed track record has you thinking about diversification, this could be a good moment to scan a curated set of 33 AI infrastructure stocks for other data driven opportunities.

With Teradata trading at $30.03 and sitting at a discount to both analyst targets and some intrinsic estimates, is the market overlooking value here, or is it already factoring in the company’s future growth potential?

Most Popular Narrative: 15.9% Undervalued

At $30.03 per share versus a narrative fair value of about $35.73, Teradata is framed as undervalued, with that gap hinging on how its future cash flows and earnings multiple play out under detailed modeling.

Ongoing product innovation (AI Factory, Enterprise Vector Store, LLMOps, and open source MCP server) is increasing platform differentiation by integrating AI/ML capabilities and supporting industry-specific use cases, which is expected to drive higher average contract values and improve net retention rates over time.

Read the complete narrative.

Want to see what sits behind that fair value jump? The narrative leans heavily on revenue mix, margins, and a richer future earnings multiple. Curious which assumptions really move the needle here? The full breakdown joins those pieces into one valuation story.

Result: Fair Value of $35.73 (UNDERVALUED)

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

However, there are still real pressure points here, especially ongoing revenue headwinds and stiff competition from hyperscalers, which could challenge both margins and the higher fair value case.

Find out about the key risks to this Teradata narrative.

Next Steps

With sentiment clearly mixed, both on the upside and the risk side, this is a good time to look through the numbers yourself and decide what matters most for you as an investor, then weigh up 4 key rewards and 1 important warning sign before you settle on a view.

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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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