Teradata Corporation

Valuation Analysis

About the Company

Teradata Corporation, together with its subsidiaries, provides an AI and knowledge platforms in the United States and internationally. It operates in two segments, Product Sales and Consulting Services. The company's AI and Knowledge platform designed for enterprise-grade workloads. Its consulting services include support services for organizations to establish data analytics and and AI vision, enable a hybrid ecosystem architecture, and identify and operationalize opportunities. The company serves clients in financial services, healthcare and life sciences, public sector, manufacturing, retail, telecommunications, and travel/transportation sectors through a direct sales force. Teradata Corporation was incorporated in 1979 and is headquartered in San Diego, California.

Teradata Corporation Stock at a Glance

Teradata Corporation (TDC) is currently trading at $33.00 with a market capitalization of $3.1B. The trailing P/E ratio stands at 7.55x, with a forward P/E of 11.5x. The 52-week range spans from $19.83 to $41.78; the current price is 21% below the yearly high. Year-over-year revenue growth stands at +6.2%. The net profit margin stands at 24.93%.

💰 Dividend

Teradata Corporation currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

8 analysts rate Teradata Corporation (TDC) on consensus: Hold. The average price target is $34.88, implying +5.68% from the current price. Analyst price targets range from $28.00 to $49.00.

Teradata Corporation: The Investment Case in Detail

Teradata Corporation (TDC) operates in the Technology — specifically Software - Infrastructure — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Earnings growth of 671.1% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. With a gross margin near 60.75%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Return on equity of 117.76% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard.

The Bear Case

Short interest sits at 19.28% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

Valuation in Context

At a PEG of 6, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here. The EV/EBITDA multiple of 8.75x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (19.28%).

Trading Data

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