Teradata Corporation (TDC) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+40.4%

$48.62

vs $34.63 price

Levered DCF

$82.24

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

2.61

Grey zone

Rating

A+

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	22.06×	26.4×	70.18×	105.19×	31.46×	19.04×	-127.48×	153.44×
P/B	12.49×	22.58×	32.17×	13.46×	10.03×	6.14×	11.67×	9.24×
P/S	1.73×	1.72×	2.37×	1.94×	2.41×	1.34×	1.61×	2.11×
EV / EBITDA	10.98×	10.78×	17.1×	15.74×	12.51×	14.69×	19.82×	24.59×
Gross margin	59.7%	60.5%	60.8%	60.2%	61.9%	55.5%	50.3%	47.4%
Operating margin	12.3%	11.9%	10.1%	6.6%	12.1%	0.9%	0.3%	2.0%
Net margin	7.8%	6.5%	3.4%	1.8%	7.7%	7.0%	-1.3%	1.4%
Current ratio	0.92×	0.81×	0.87×	1.02×	1.07×	1.1×	1.14×	1.42×
Debt / equity	2.44×	4.33×	4.74×	2.47×	1.24×	1.61×	2.55×	1.1×
Interest coverage	7.88×	7.21×	6.2×	4.92×	8.88×	0.59×	0.23×	1.95×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	56.5%	85.7%	45.9%	12.8%	32.0%	32.3%	-9.2%	6.1%
Return on invested capital	15.9%	16.9%	10.2%	5.3%	13.5%	-6.3%	0.5%	3.1%
Return on assets	7.3%	6.7%	3.3%	1.6%	6.8%	5.9%	-1.2%	1.3%
Free cash flow yield	10.0%	9.2%	8.2%	11.6%	9.4%	8.8%	2.9%	4.5%
Earnings yield	4.5%	3.8%	1.4%	0.9%	3.2%	5.3%	-0.8%	0.7%
Enterprise value	$2.9B	$3.2B	$4.5B	$3.5B	$4.6B	$2.6B	$3.2B	$4.4B
Net debt / EBITDA	0.25×	0.53×	0.59×	0.3×	-0.05×	0.65×	1.06×	-0.96×
Cash conversion cycle (days)	10	5	15	33	60	73	66	63