Teradyne Inc (TER) fair value: what the stock is really worth
As of Oct 23, 2026: fair value (intrinsic value) of Teradyne Inc stock $66.14, price $309, upside -78.6%, quality 74 out of 100. Rating: strongly overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
Fair value above price?No
Good quality?Yes
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 22, 2026.
How to read this chart
60‑month range $67.66 – $483.65 · fair‑value band $40.82 – $100.10 · the $308.85 price screens above the $66.14 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 3 fiscal years are left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Oct 22, 2026.
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Teradyne, Inc. engages in the design, development, manufacture, and sale of automated test systems and robotics products in the United States, Asia Pacific, Europe, the Middle East, and Africa. The company operates through Semiconductor Test, Robotics, and Other segments.
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The Semiconductor Test segment offers products and services for wafer level and device package testing, and system level testing of semiconductor devices in automotive, industrial, communications, consumer, smartphones, cloud, computer and electronic game, and other applications.
This segment also provides FLEX test platform systems; J750 test system to address the volume semiconductor devices, including microcontrollers; Magnum platform that tests memory devices, such as flash memory and DRAM; and ETS platform for semiconductor manufacturers, and assembly and test subcontractors in the analog/mixed signal markets.
It serves integrated device manufacturers that integrate the fabrication of silicon wafers into their business; fabless companies that outsource the manufacturing of silicon wafers; foundries; and semiconductor assembly and test providers.
The Robotics segment provides collaborative robotic arms and autonomous mobile robots for manufacturing, logistics, and industrial customers.
It also provides product test instruments which includes operations related to the design, manufacturing and marketing of products and services for defense/aerospace test, circuit-board test, wireless test systems, and silicon photonics testing.
Teradyne, Inc. was incorporated in 1960 and is headquartered in North Reading, Massachusetts.
Stock analysis
Teradyne Inc (TER) currently trades at $308.85, while our model-based Fair Value estimate is $66.14, 78.6% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $85.40 per share, and 0 of the 26 models we run sit above the $308.85 price.
Bear case: the Earnings-Based group reads lowest at $23.03, and 26 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $40.82 (bear) to $100.10 (bull), the price of $308.85 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 74/100 (solid quality), in the Technology sector.
Weak Growth: Revenue growth is weak: less than 2 % a year.
Teradyne Inc reported revenue of $3.2B in FY2025 versus $3.7B in FY2021, a compound −3.7%/yr. Reported net income was $554M in FY2025, compounding −14.0%/yr from FY2021.
Key figures
Market cap $52.6B Large · P/E ratio 42.4 · P/S ratio 11.8 · EPS (TTM) $7.28 · Dividend yield 0.2% · Net margin 25.8% · Return on equity 36.5% · Return on assets (EBIT) 20.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 89 out of 100 (medium confidence).
What moves the price
The share trades about 36% below its 52-week high and 114% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at −5% fair-value upside, at −79%, TER screens richer than that median.
Fair Value models
The price assumes far more growth than our models allow for, so the models scatter widely ($3.59 to $106.10). Read the Fair Value as a cautious anchor, not a price target; the Growth Forecast section shows what the price assumes.
Bear$40.82Fair Value $66.14Bull$100.10
Price $308.85 · Upside -78.6%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($5.54 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is weak: less than 2 % a year.
Revenue growth 1 year
+13.1%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+0.4%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+0.4%
Start year 2020 (pandemic). Over 10 years: +6.9% a year
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.8%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
−3.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year−3.9%
Dividend (yield on the price)0.2%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−3.9% vs 18.1%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.30% → 22%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+46.8%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+26.1%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +43.4% a year for the price and +23.2% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (99 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: Moderate advantages in margins and innovation form the core strength, while limited public signals on durability across categories remain the key limitation.
Main risk: Tighter linkage to volatile hyperscaler spending cycles would hit demand for its specialized AI test systems.
Teradyne just launched its Titan HP platform with built-in burn-in for high-power AI data center chips, letting customers test reliability under realistic workloads instead of separate ovens. This expands the company's role across more of the AI device supply chain. Does the push into specialized AI test systems widen its moat in semiconductor equipment, or tie its results even tighter to volatile hyperscaler spending cycles?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Semiconductor Equipment & Materials · 227 stocks
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Teradyne Inc Fair Value". https://www.fairvalue-calculator.com/stock/TER
Frequently asked questions
Is Teradyne Inc (TER) overvalued or undervalued?
As of Oct 22, 2026, our model estimates a fair value of $66.14 versus a price of $308.85, about −79% upside (overvalued).
What is the fair value of TER?
Our model-based fair value for Teradyne Inc is $66.14 (as of Oct 22, 2026), built from audited fundamentals. The current price: $308.85.
What is the quality score of TER?
Teradyne Inc has a Quality Score of 74/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Teradyne Inc (TER)?
Our model-based price target is the fair value of $66.14 (as of Oct 22, 2026) from 26 valuation models. Cautious scenario $40.82, optimistic scenario $100.10. It is a calculation from audited fundamentals, not an analyst target.
What is the Teradyne Inc stock forecast for 2026?
Our models put fair value at $66.14, about −79% upside versus a price of $308.85 (overvalued). Cautious scenario $40.82, optimistic scenario $100.10. The calculation is refreshed regularly with new filings.
What is the revenue of Teradyne Inc (TER)?
Teradyne Inc reported trailing-twelve-month revenue of about $4.5B (latest available figure, as of Oct 22, 2026).
Does Teradyne Inc pay a dividend?
Teradyne Inc currently shows a dividend yield of 0.16% relative to its recent price (as of Oct 22, 2026).
What growth is priced into Teradyne Inc (TER)?
For today's price to be fair in a discounted-cash-flow model, Teradyne Inc would have to grow free cash flow by +46.8 % per year for five years (discount rate 11.0 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +0.4 % per year. As of Oct 22, 2026.
What discount rate (WACC) does the fair value of TER use?
Our models discount Teradyne Inc at 11.0 %: a base by market capitalisation (large), damped by beta 1.75, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Teradyne Inc that is +46.8 % per year a year over ten years, using the same discount rate (11.0 %) and the same formula as our fair value.
How much growth has Teradyne Inc (TER) delivered so far?
Over the past 5 years revenue at Teradyne Inc grew +0.4 % a year. The price currently implies +46.8 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Teradyne Inc (TER) growing?
The median revenue growth in the sector is +10.8 % a year. That is the yardstick for the growth priced into Teradyne Inc (+46.8 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Teradyne Inc (TER)?
The free-cash-flow yield on the price is 0.92 %: that much free cash flow Teradyne Inc produces per unit of market value. When it exceeds the discount rate of our models (11.0 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Teradyne Inc (TER)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Teradyne Inc it is $66.14 per share (as of Oct 22, 2026), against a price of $308.85. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Teradyne Inc stock overvalued or undervalued in 2026?
As of Oct 22, 2026, TER trades above its calculated fair value: price $308.85, fair value $66.14, a gap of about −79% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of TER?
No. The price is what the market pays today ($308.85); the fair value is what the company's own numbers justify ($66.14). For Teradyne Inc the two are $242.71 per share apart. That gap is exactly why we show both numbers side by side.
How much is Teradyne Inc worth?
The market values Teradyne Inc at about $52.6B (market capitalisation, as of Oct 22, 2026). Per share that is $308.85; our models calculate a fair value of $66.14 per share.
What do the bullish and bearish scenarios say about TER?
Our models span a range for Teradyne Inc: cautious scenario $40.82, base $66.14, optimistic $100.10 per share (as of Oct 22, 2026, price $308.85). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of TER?
Teradyne Inc trades at a price-to-earnings ratio of 42.4 (as of Oct 22, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $66.14 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 78.0 (reported for FY2025: 87.9). Other multiples: PEG 0.7, P/B 18.8, P/S 11.8, EV/EBITDA 34.8.
What is the PEG ratio of TER?
The PEG ratio of Teradyne Inc is 0.73 (P/E divided by earnings growth, as of Oct 22, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Teradyne Inc (TER)?
Balance-sheet figures for Teradyne Inc (as of Oct 22, 2026): return on equity 36.5%, debt of 0.03 per unit of equity. They feed the Quality Score of 74/100, which measures business quality independently of the share price.
How far is TER from its 52-week high?
Teradyne Inc trades at $308.85, about 36% below its 52-week high of $483.65 and 114% above the low of $144.00 (as of Oct 23, 2026). Distance from the high says nothing about value: that is what the fair value of $66.14 is for.
Which stocks are comparable to Teradyne Inc?
From the same area (Technology) we also value ASML Holding, Lam Research Corporation, Applied Materials, Inc, KLA Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Teradyne Inc stock attractive at the current price?
The data as of Oct 22, 2026: price $308.85, calculated fair value $66.14 (−79%), Quality Score 74/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of TER calculated?
We run Teradyne Inc through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $66.14, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 12.3 % above its aggregate fair value. Teradyne Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Teradyne Inc (TER)?
The closing price on Oct 23, 2026 was $308.85. Our model-based fair value is $66.14, about −79% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Teradyne Inc right now?
A high-quality business (quality 74/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety. The price sits above even our optimistic bull case ($100.10). The favourable scenario is already priced in. A fairly wide model range ($40.82 to $100.10) leaves room in how you read the outcome.
Where does the earnings growth of Teradyne Inc (TER) come from?
Earnings per share at Teradyne Inc grew +18.0 % a year from 2014 to 2025. Broken into its drivers: revenue per share +9.5 %, EBIT margin +7.5 %, tax rate +0.7 %, residual (interest, one-offs) −0.5 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Teradyne Inc
How large is the market capitalisation of Teradyne Inc (TER)?
The market capitalisation of Teradyne Inc is $52.6B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Teradyne Inc (TER)?
The price-to-sales ratio of Teradyne Inc is 11.8 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Teradyne Inc (TER)?
Earnings per share at Teradyne Inc are $7.28 (price ÷ EPS = P/E 42.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Teradyne Inc (TER)?
The dividend yield of Teradyne Inc is 0.2% (payout 6.1%, on adjusted earnings, reported 6.9%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Teradyne Inc (TER)?
The net margin of Teradyne Inc is 25.8% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Teradyne Inc (TER)?
The return on equity (ROE) of Teradyne Inc is 36.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Teradyne Inc (TER)?
On an EBIT basis the return on assets of Teradyne Inc is 20.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Teradyne Inc (TER)?
The operating margin of Teradyne Inc is 33.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Teradyne Inc (TER)?
Revenue at Teradyne Inc is growing +104% versus a year earlier (3y avg +0.4%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Teradyne Inc (TER)?
Earnings per share at Teradyne Inc are growing +386% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Teradyne Inc (TER) carry?
The net debt of Teradyne Inc is $53.4M (fiscal year 2025, ≈ 0.1 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Oct 22, 2026