Teradyne, Inc. (TER) Stock Analysis — Fair Value, Risk & Moat Rating
NMS · Technology · Semiconductor Equipment & Materials
Is Teradyne, Inc. a safe investment right now?
As of Aug 13, 2026, our estimated fair value (intrinsic value) for Teradyne, Inc. (TER) stock is $310.80, versus a market price of $418.79 — Overvalued. Predicted EPS $7.77 x 40.0 Fair PE.
Teradyne, Inc.'s Altman Z-Score of 30.08 places it in the safe zone. Our fair value estimate is $310.80 (Overvalued). Moat rating: 3.4/5 stars.
Teradyne, Inc. is part of the AI Chips, Semi Equipment & Servers group in our AI coverage — compare its fair value against every other AI, cloud, and quantum stock through a value investing lens.
Could Teradyne, Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 30.08 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives TER's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.1994 | 1.2 | 0.24 |
| B · Retained Earnings / Total Assets | RE / TA | 0.1779 | 1.4 | 0.25 |
| C · EBIT / Total Assets | EBIT / TA | 0.1578 | 3.3 | 0.52 |
| D · Market Cap / Total Liabilities | MCap / TL | 47.1766 | 0.6 | 28.31 |
| E · Revenue / Total Assets | Rev / TA | 0.7625 | 1.0 | 0.76 |
How has TER's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 39.92 | Safe |
| 2023 | 42.95 | Safe |
| 2024 | 46.23 | Safe |
| 2025 | 30.08 | Safe |
Source: Calculated from TER's latest 10-K filing on SEC EDGAR.
Teradyne, Inc. Fair Value & Intrinsic Value — What Is It Actually Worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $7.77 | Proprietary blend of reported actuals (2Q actual) + analyst consensus, weighted by α |
| Last Year EPS | $3.47 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $9.09 | 15 analysts consensus |
| Trailing P/E | 57.6x | Current market pricing |
| Fair P/E (β discount) | 40.0x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Growing | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $449.80 (15 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Teradyne, Inc. have a durable competitive advantage?
Moat rating: 3.4/5.
What makes up TER's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 3/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is TER's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 33.8% | — |
| 2023 | 21.0% | Declining |
| 2024 | 21.7% | Stable |
| 2025 | 22.0% | Stable |
Source: ROIC calculated from SEC EDGAR filings.
Is Teradyne, Inc.'s dividend safe?
Can Teradyne, Inc. afford its dividend?
Payout ratio is 6.9%. FCF covers the dividend 5.9x. 13 consecutive years of payments.
US dividend withholding tax of 30% applies to non-US tax residents. This rate may be reduced under a tax treaty between the US and your country of residence. The adjusted yield shown assumes the default 30% rate. For informational purposes only — consult a qualified tax advisor.
Teradyne, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $3.2B | $2.8B | $3.2B | Stable |
| Net Income | $0.6B | $0.5B | $0.7B | Declining |
| Free Cash Flow | $0.5B | $0.5B | $0.4B | Rising |
| Gross Margin | 58.2% | 58.5% | 59.2% | Stable |
Recent events that affect our TER analysis
TER earnings report scheduled
Upcoming report. Consensus EPS estimate: $2.05. Revenue estimate: $1.26B. Our current Fair Value: $310.80 — a significant beat or miss could shift this estimate.
TER analyst consensus: 76% bullish (13 of 17 analysts)
1 Strong Buy, 12 Buy, 3 Hold, 0 Sell, 1 Strong Sell. Consensus target: $449.80 (7.4% upside). Compare with our independent Fair Value: $310.80.
TER filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TER filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
TER filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TER beat EPS estimates by 20.3%
Reported EPS: $2.47 vs estimate $2.05. Earnings strength supports our Fair Value of $310.80 (25.8% below current price).
TER paid $0.1300/share dividend
Dividend Safety Grade: A. Payout ratio: 6.9%.
TER filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TER filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
TER filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TER beat EPS estimates by 20.9%
Reported EPS: $2.56 vs estimate $2.12. Earnings strength supports our Fair Value of $310.80 (25.8% below current price).
TER filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
TER paid $0.1300/share dividend
Dividend Safety Grade: A. Payout ratio: 6.9%.
TER filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TER beat EPS estimates by 30.1%
Reported EPS: $1.80 vs estimate $1.38. Earnings strength supports our Fair Value of $310.80 (25.8% below current price).
TER paid $0.1200/share dividend
Dividend Safety Grade: A. Payout ratio: 6.9%.
TER filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
TER filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TER beat EPS estimates by 7.5%
Reported EPS: $0.85 vs estimate $0.79. Earnings strength supports our Fair Value of $310.80 (25.8% below current price).
TER filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TER paid $0.1200/share dividend
Dividend Safety Grade: A. Payout ratio: 6.9%.
TER filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TER filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
TER filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TER beat EPS estimates by 4.9%
Reported EPS: $0.57 vs estimate $0.54. Earnings strength supports our Fair Value of $310.80 (25.8% below current price).
TER filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TER filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TER paid $0.1200/share dividend
Dividend Safety Grade: A. Payout ratio: 6.9%.
TER filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TER filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
TER filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TER beat EPS estimates by 21.7%
Reported EPS: $0.75 vs estimate $0.62. Earnings strength supports our Fair Value of $310.80 (25.8% below current price).
TER filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TER filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TER filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
TER paid $0.1200/share dividend
Dividend Safety Grade: A. Payout ratio: 6.9%.
TER filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TER beat EPS estimates by 4.5%
Reported EPS: $0.95 vs estimate $0.91. Earnings strength supports our Fair Value of $310.80 (25.8% below current price).
TER filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about Teradyne, Inc.
What is Teradyne, Inc. stock price today?
Teradyne, Inc. (TER) stock price is $418.79 as of the latest market close, traded on the NASDAQ exchange.
What does Teradyne, Inc. do?
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. It operates through Semiconductor Test, Robotics, and Other segments.
What is Teradyne, Inc. market cap?
Teradyne, Inc. has a market capitalization of $65.47B, classifying it as a large-cap stock in the Technology sector.
What sector and industry is TER in?
Teradyne, Inc. operates in the Technology sector, specifically within the Semiconductor Equipment & Materials industry. It trades on the NASDAQ under the ticker symbol TER.
Is TER stock overvalued or undervalued?
Based on our valuation model, Teradyne, Inc. trades 34.8% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $310.80
- Current Price: $418.79
- Valuation Zone: Overvalued
What is TER stock forecast and analyst target price?
Based on 15 Wall Street analysts, the consensus price target for Teradyne, Inc. is $449.80, implying upside of 7.4% from the current price.
- Analyst High Target: $550.00
- Analyst Low Target: $350.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Teradyne, Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for Teradyne, Inc.:
- Revenue growth (current year est.): 61.2%
- EPS growth (current year est.): 129.6%
- Revenue growth (next year est.): 21.0%
- EPS growth (next year est.): 27.1%
What are Teradyne, Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $3.2B | Stable |
| Net Income | $0.6B | Declining |
| Free Cash Flow | $0.5B | Rising |
| Gross Margin | 58.2% | Stable |
What is TER's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 57.6x
- Forward P/E (next 12 months est.): 36.2x
- FairValueLabs Fair P/E: 40.0x
How volatile is TER stock?
Teradyne, Inc. has a beta of 1.79, meaning it is significantly more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Teradyne, Inc. have?
Teradyne, Inc.'s balance sheet shows:
- Total Cash: $354.8M
- Total Debt: $100.1M
- Net Cash Position: $254.7M
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Teradyne, Inc.'s free cash flow?
Teradyne, Inc. generated $437.4M in trailing twelve-month free cash flow (from $1.06B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Teradyne, Inc. pay a dividend, and is it safe?
Yes, Teradyne, Inc. pays a regular dividend. Here are the key metrics:
- Dividend Yield: 0.1%
- Payout Ratio: 6.9%
- Consecutive Years Paid: 13
- 5-Year Dividend Growth: -8.2%
- FairValueLabs Safety Grade: A
Is Teradyne, Inc. at risk of going bankrupt?
Teradyne, Inc.'s Altman Z-Score is 30.08, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Teradyne, Inc. have a durable competitive advantage?
Teradyne, Inc. scores 3.4/5 stars (Narrow moat) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 3/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is TER's return on equity (ROE)?
Teradyne, Inc.'s return on equity is 36.5%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy TER stock?
TER shares can be purchased through any brokerage account that provides access to the NASDAQ. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol TER
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is TER a value stock or speculative?
FairValueLabs classifies Teradyne, Inc. as Value-Speculation. It has some value characteristics but carries elevated risk factors that make it speculative. Extra due diligence is recommended.
Who is the CEO of Teradyne, Inc.?
The current CEO of Teradyne, Inc. is Mr. Gregory Stephen Smith.
What is TER's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $7.27
- Forward EPS (next 12 months est.): $11.55
- Analyst consensus EPS (this year): $9.09
- Analyst consensus EPS (next year): $11.55
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FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Aug 13, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
TER analysis methodology: How we calculate fair value, Z-Scores, and moat ratings