Valuation dashboard for Teradyne, Inc. (TER) with P/E 40.64, P/B 12.55, EV/EBITDA 25.67 and dividend yield 0.17%. DCF, Graham Number, EPS growth, peer multiples and dividend discount models plus sector comparison against other Technology companies.
Teradyne, Inc., established in 1960 and headquartered in North Reading, Massachusetts, is a global leader specializing in the creation, production, sale, and maintenance of automated testing solutions. The company's operations are categorized into four principal divisions: 1. Semiconductor Test: This segment delivers solutions for testing microchips at both the wafer and finished device package stages.
Analysis Summary
Teradyne, Inc. reported revenue of $3.19B in the most recent fiscal year, growing at a 5-year CAGR of 0.4%. Net income reached $554.0M, with a -6.7% 5-year CAGR.
Trailing-twelve-month margins: gross margin 59.3%, operating margin 32.1%, net margin 27.5%.
At $296.23 (closing price, October 29, 2026), TER trades at a P/E of 40.64 and an ROE of 42.04%. Market capitalisation stands at $46.3B, placing it among large-cap names.
Balance sheet quality for TER: current ratio of 1.8. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Long-term track record: over the past decade, TER has compounded revenue at 6.9% annually and net income at 10.4%. This decade-long view smooths out cyclical fluctuations and reveals the underlying business momentum more reliably than single-year snapshots.
Valuation Ratios
| P/E Ratio | 40.64 |
| Price / Book | 12.55 |
| EV / EBITDA | 25.67 |
| Dividend Yield | 0.17% |
Valuation Models
| DCF Fair Value | $45.60 |
| vs Current Price | -84.6% |
Peer Comparison
| Symbol | Company | Market Cap | P/E | P/B | ROE |
|---|---|---|---|---|---|
| TER | Teradyne, Inc. | $46.3B | 40.64 | 12.55 | 42.0% |
| FORM | FormFactor, Inc. | $7.6B | 67.21 | 7.31 | 15.8% |
| CAMT | Camtek Ltd. | $5.9B | 207.66 | 9.63 | 5.8% |
| COHU | Cohu, Inc. | $2.5B | 3.38 | -2.9% | |
| KEYS | Keysight Technologies, Inc. | $56.2B | 45.43 | 8.83 | 20.1% |
| ONTO | Onto Innovation Inc. | $10.9B | 83.42 | 6.15 | 6.5% |
Price
| Price | $296.23 (closing price, October 29, 2026) |
| Market Cap | $46.3B |
| Exchange | NASDAQ |
| Country | US |
Profitability
| Return on Equity | 42.04% |
| Return on Invested Capital | 33.59% |
| Return on Assets | 25.20% |
| Gross Margin | 59.32% |
| Operating Margin | 32.11% |
| Net Margin | 27.46% |
Related companies: FORM · CAMT · COHU · KEYS · ONTO
Explore sector: Technology · Semiconductors
More sections of TER: Overview · Financials · Statistics · Estimates · Technical · Ownership · News · Events
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