Teradyne Inc (TER) is now in the Overvalued zone, suggesting that its current forward PE ratio of 40.78 is considered Overvalued compared with the five-year average of 28.74. The fair price of Teradyne Inc (TER) is between 218.24 to 292.90 according to relative valuation method. Compared to the current price of 322.46 USD , Teradyne Inc By Overvalued By 10.09%.

Relative Value

Fair Zone

218.24-292.90

Current Price：322.46

10.09%

Overvalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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Teradyne Inc (TER) has a current Price-to-Book (P/B) ratio of 12.01. Compared to its 3-year average P/B ratio of 6.82, the current P/B ratio is approximately 76.02% higher. Relative to its 5-year average P/B ratio of 7.13, the current P/B ratio is about 68.39% higher. Teradyne Inc (TER) has a Forward Free Cash Flow (FCF) yield of approximately 1.41%. Compared to its 3-year average FCF yield of 2.69%, the current FCF yield is approximately -47.66% lower. Relative to its 5-year average FCF yield of 3.33%, the current FCF yield is about -57.79% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for TER competitors is 4.62, providing a benchmark for relative valuation. Teradyne Inc Corp (TER.O) exhibits a P/S ratio of 8.66, which is 87.44% above the industry average. Given its robust revenue growth of 43.89%, this premium appears sustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of TER increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of TER in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is TER currently overvalued or undervalued?

What is Teradyne Inc (TER) fair value?

TER's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of Teradyne Inc (TER) is between 218.24 to 292.90 according to relative valuation method.

How does TER's valuation metrics compare to the industry average?

The average P/S ratio for TER's competitors is 4.62, providing a benchmark for relative valuation. Teradyne Inc Corp (TER) exhibits a P/S ratio of 8.66, which is 87.44% above the industry average. Given its robust revenue growth of 43.89%, this premium appears sustainable.

What is the current P/B ratio for Teradyne Inc (TER) as of Mar 02 2026?

As of Mar 02 2026, Teradyne Inc (TER) has a P/B ratio of 12.01. This indicates that the market values TER at 12.01 times its book value.

What is the current FCF Yield for Teradyne Inc (TER) as of Mar 02 2026?

As of Mar 02 2026, Teradyne Inc (TER) has a FCF Yield of 1.41%. This means that for every dollar of Teradyne Inc's market capitalization, the company generates 1.41 cents in free cash flow.

What is the current Forward P/E ratio for Teradyne Inc (TER) as of Mar 02 2026?

As of Mar 02 2026, Teradyne Inc (TER) has a Forward P/E ratio of 40.78. This means the market is willing to pay $40.78 for every dollar of Teradyne Inc's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Teradyne Inc (TER) as of Mar 02 2026?

As of Mar 02 2026, Teradyne Inc (TER) has a Forward P/S ratio of 8.66. This means the market is valuing TER at $8.66 for every dollar of expected revenue over the next 12 months.

TER Valuation