TER
Teradyne Inc
Exchange: NASDAQSector: TechnologyIndustry: Semiconductor Equipment & Materials
Teradyne designs, develops, and manufactures automated test equipment and advanced robotics systems. Its test solutions for semiconductors and electronics products enable Teradyne’s customers to consistently deliver on their quality standards. Its advanced robotics business includes collaborative robots and mobile robots that support manufacturing and warehouse operations for companies of all sizes.
Did you know?
Trading 74% above its estimated fair value of $89.64.
Current Price
$345.42
+0.57%GoodMoat Value
$89.64
74.0% overvaluedProfile
Valuation (TTM)
Market Cap$54.08B
P/E63.32
EV$47.56B
P/B19.34
Shares Out156.56M
P/Sales14.28
Revenue$3.79B
EV/EBITDA48.12
Teradyne Inc (TER) Stock Analysis
GoodMoat Analysis
Teradyne is a high-quality semiconductor test equipment leader with a strong competitive moat, but it is currently priced at an extreme valuation that offers no margin of safety for a value investor. The stock's price is over 260% above the GoodMoat target, indicating it is deeply overvalued.
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Teradyne Inc is a leading provider of automated test equipment (ATE) for semiconductors, a mission-critical niche where it holds a dominant market share. Applying the GoodMoat framework, the company likely scores well on Moat Identification, particularly for Switching Costs (its complex systems are deeply integrated into client production lines), Niche Dominance, and Technology Leadership. Its Quality Indicators are also strong, evidenced by a robust ROE of 19.8%, a solid operating margin of 20.4%, and a very conservative balance sheet with a low Debt/Equity ratio of 0.10. This profile suggests it would likely pass the Moat & Quality Gate in the Decision Framework. However, the Valuation Assessment presents a severe problem. The stock trades at a P/E of 91.4, an extreme multiple that is a High Confidence Red Flag. More critically, the current price of $323.36 is over 260% above the GoodMoat target of $89.64, indicating a deeply negative margin of safety. While the business itself is high-quality, the price fully reflects and exceeds that quality, leaving no room for error. For a value investor, this fails the Valuation & Risk Gate decisively; the investment case is unfavourable due to extreme overvaluation despite the underlying business strength.
Market Cap$54.08B
Current Price$345.42
P/E Ratio63.32
Forward P/E—
PEG Ratio0.20
EPS$3.47
Book Value$17.86
P/B Ratio19.34
TER Financial Charts
TER 52-Week Range
$73.80
$418.08
50-Day MA: $329.80200-Day MA: $209.30
Did you know?
Trading 74% above its estimated fair value of $89.64.
Teradyne Inc (TER) Financial Summary
Teradyne Inc (TER) is a Technology company in the Semiconductor Equipment & Materials industry, listed on NASDAQ. The stock currently trades at $345.42 with a market capitalization of $54.08B.
Key valuation metrics include a P/E ratio of 63.32, price-to-book ratio of 19.34, and EPS of $3.47. The company reports a profit margin of 22.6% and return on equity of 30.5%.
TER Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $54.08B |
| P/E Ratio | 63.32 |
| EPS | $3.47 |
| P/B Ratio | 19.34 |
| P/S Ratio | 14.28 |
| EV/EBITDA | 48.12 |
| Dividend Yield | 0.14% |
| Profit Margin | 22.6% |
| Return on Equity | 30.5% |
| Debt/Equity | 0.10 |
Teradyne Inc (TER) Valuation
Based on GoodMoat's DCF model, Teradyne Inc has a fair value estimate of $89.64. At the current price of $345.42, the stock appears 285.3% overvalued relative to our intrinsic value estimate.
TER Quality Indicators
Teradyne Inc maintains a profit margin of 22.6% and an operating margin of 20.4%. Return on equity stands at 30.5%. The current ratio is 1.75. Debt-to-equity ratio is 0.10.
About Teradyne Inc
Teradyne designs, develops, and manufactures automated test equipment and advanced robotics systems. Its test solutions for semiconductors and electronics products enable Teradyne’s customers to consistently deliver on their quality standards. Its advanced robotics business includes collaborative robots and mobile robots that support manufacturing and warehouse operations for companies of all sizes.
TER Free Cash Flow
Teradyne Inc generated $450.41M in trailing twelve-month free cash flow, representing an FCF yield of 0.83%. This low FCF yield may reflect heavy reinvestment or growth spending.
TER Shares Outstanding
Teradyne Inc has 0.16 billion shares outstanding at a share price of $345.42, giving it a market capitalization of $54.08B.
TER Recent Insider Trades
Recent insider transactions at Teradyne Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Mills Regan (President, Product Test) | SELL | 252 | $73301.76 |
| JOHNSON MERCEDES | SELL | 625 | $187000.00 |
| Mills Regan (President, Product Test) | SELL | 788 | $262301.56 |