Teradyne, Inc. (TER) 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

-82.5%

$46.28

vs $265.09 price

Levered DCF

$49.52

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

17.68

Safe 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	55.46×	36.93×	37.29×	19.33×	26.59×	25.4×	24.89×	13.02×
P/B	10.83×	7.11×	6.63×	5.65×	10.52×	9.01×	7.85×	3.87×
P/S	9.49×	7.1×	6.26×	4.39×	7.29×	6.38×	5.06×	2.8×
EV / EBITDA	37.35×	26.78×	25.2×	13.81×	20.01×	18.55×	16.98×	8.86×
Gross margin	58.2%	58.5%	57.4%	59.2%	59.6%	57.2%	58.4%	58.1%
Operating margin	20.4%	21.1%	18.7%	26.4%	32.4%	29.7%	24.1%	22.6%
Net margin	17.4%	19.2%	16.8%	22.7%	27.4%	25.1%	20.4%	21.5%
Current ratio	1.76×	2.91×	3.28×	3.03×	3.2×	3.45×	3.08×	3.64×
Debt / equity	0.12×	0.05×	0.06×	0.08×	0.09×	0.23×	0.34×	0.25×
Interest coverage	94.95×	165.54×	131.65×	223.7×	67.38×	38.39×	24.91×	21.75×
Dividend yield	0.3%	0.4%	0.4%	0.5%	0.2%	0.3%	0.5%	1.1%
Payout ratio	13.8%	14.1%	15.1%	9.7%	6.5%	8.5%	13.1%	14.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	19.8%	19.2%	17.8%	29.2%	39.6%	35.5%	31.6%	29.7%
Return on invested capital	17.3%	17.2%	15.0%	25.1%	34.5%	26.9%	21.7%	20.5%
Return on assets	13.3%	14.6%	12.9%	20.4%	26.6%	21.5%	16.8%	16.7%
Free cash flow yield	1.5%	2.4%	2.5%	3.0%	3.6%	3.4%	3.8%	6.2%
Earnings yield	1.8%	2.7%	2.7%	5.2%	3.8%	3.9%	4.0%	7.7%
Enterprise value	$30.3B	$19.6B	$16.1B	$13.2B	$26.1B	$19.5B	$11.4B	$5.3B
Net debt / EBITDA	0.07×	-0.57×	-0.95×	-0.69×	-0.68×	-0.38×	-0.4×	-0.91×
Cash conversion cycle (days)	119	226	260	249	165	140	139	127