TER

Teradyne, Inc.Technology / Semiconductor Equipment & MaterialsINTACT

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 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. The company has a strategic collaboration with Tokyo Electron Limited for the development of a test cell solution for device screening in AI and data center applications. Teradyne, Inc. was incorporated in 1960 and is headquartered in North Reading, Massachusetts.

Share Price
$379.72
52W: $109.56 - $487.91
DCF Fair Value
$86.10
-341% Premium
P/E (TTM)
52.1x
ROIC
24.9%
Operating Margin
33.2%
FCF Yield
0.7%
Debt / Equity
0.03x
Piotroski Score
7/9
Altman Z-Score
2.94
Market Cap
$59.4B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($86.10)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$86.10
MOS Buy Target (-25%)
$64.58
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$379.72
DCF Fair Value
$86.58
-338.6% Premium
$437M
$100M$437M (Reported)$50,000M
16.6%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
-$300M (Net Cash)
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$5.4B
PV of Terminal Value
$7.8B
Implied Enterprise Value
$13.2B
Implied Equity Value
$13.5B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$510$594$693$808$942$984$1,029$1,075$1,123$1,174
Present Value (PV)$467$500$535$572$612$587$563$539$517$496

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-532.6% Premium
$60.03

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $7.29BVPS: $21.97
Revised Graham Formula-70.1% Premium
$223.20

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings0.7% Yield
$2.66 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $0.4BYield: 0.7%

Reverse DCF: Market Growth Expectation

SPECULATIVE BARRIER
31.5% CAGR (Next 10 Yrs)

At the current price of $379.72, the market is assuming the business will compound Free Cash Flow at 31.5% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
⚠ High expectations: Leaves minimal margin of safety for operational hiccups.
Autonomous Thesis Underwriting

Surveil TER with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Teradyne, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 33.2% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: Teradyne, Inc. (TER) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Teradyne, Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Teradyne, Inc. has an estimated DCF intrinsic fair value of $86.10 per share compared to its current market price of $379.72. This represents an estimated 341.0% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $60.03.

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