Teradyne, Inc.

Valuation Analysis

About the Company

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. 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 semico

Teradyne, Inc. Stock at a Glance

Teradyne, Inc. (TER) is currently trading at $403.20 with a market capitalization of $63.1B. The trailing P/E ratio stands at 74.67x, with a forward P/E of 42.43x. The 52-week range spans from $84.12 to $422.11; the current price is 4.5% below the yearly high. Year-over-year revenue growth stands at +87.0%. The net profit margin stands at 22.55%.

💰 Dividend

Teradyne, Inc. pays an annual dividend of $0.52 per share, representing a yield of 0.13%. The payout ratio stands at 9.09%.

📊 Analyst Rating

17 analysts rate Teradyne, Inc. (TER) on consensus: Buy. The average price target is $374.82, implying -7.04% from the current price. Analyst price targets range from $270.00 to $470.00.

Teradyne, Inc.: The Investment Case in Detail

Teradyne, Inc. (TER) operates in the Technology — specifically Semiconductor Equipment & Materials — 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

Top-line momentum is unusually strong with revenue expanding 87% year-over-year, a pace that puts the company well above the market average and signals genuine demand traction rather than mere cyclical tailwind. The combination of a 58.7% gross margin and 37.61% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat. Return on equity of 28.75% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard.

The Bear Case

Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

The EV/EBITDA multiple of 54.2x reflects rich expectations — historically, multiples at this level have proven hard to maintain for more than a few quarters.

What to Watch Next

• The forward P/E of 42.43x is meaningfully below the trailing 74.67x — analysts expect earnings to step up; the next earnings release is the test.
• The share is trading at 94.4% of its 52-week range — a break above the recent high opens technical upside, a failure here often invites profit-taking.

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 above-average price swings, elevated short interest (5.08%).

Trading Data

💵 Dividend Info

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