# Teradyne Inc. (TER) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Semiconductors & Semiconductor Equipment. Price $357.03, market value $55.8 billion.

## Valuation
- **P/E (trailing): 49.0×** (5-yr avg 36.5×, 3-yr avg 44.3×). Teradyne Inc. trades at 49.0× trailing earnings, well above its own five-year average of 36.5×: investors are paying up relative to the company's past. The Technology median in the September 2026 study was 32.1×. Forward P/E is 30.6×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 6.78**. A PEG of 6.78 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 12.5×**. Each dollar of revenue is priced at 12.5×, a level that requires very high margins or very fast growth to justify.
- **Price / book: 17.8×**. The shares trade at 17.8× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 37.6×**. Enterprise value is 37.6× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 1.4%** (5-yr avg 2.5%). Free cash flow equals 1.4% of the market value, below its five-year average of 2.5%, so the shares are pricier on cash than usual.
- **Earnings yield: 2.0%**. The inverse of the P/E: 2.0% of the price is earned each year.

## Profitability
- **Gross margin: 59.2%**. Teradyne Inc. keeps 59.2% of revenue after the direct cost of what it sells.
- **Operating margin: 30.2%**. 30.2% of revenue is left after running the business, an exceptional level.
- **Net margin: 17.4%**. 17.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 19.8%**. 19.8% on shareholders' equity is solid.
- **Return on invested capital: 39.5%**. Return on all capital, debt included, is 39.5%: comfortably above what that capital costs.
- **Return on assets: 27.5%**. Each dollar of assets produces 27.5% of profit.

## Growth
- **Revenue growth (1 yr): 13.1%** (3-yr 0.4%/yr, 5-yr 0.4%/yr). Revenue grew 13.1% over the last year, against 0.4% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 4.5%** (3-yr -6.3%/yr, 5-yr -4.1%/yr). Earnings per share rose 4.5%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 2.8%/yr**. Free cash flow has compounded at 2.8% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.07**. Debt is 0.07 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Teradyne Inc. holds more cash than debt.
- **Altman Z-score: 26.34**. A Z-score of 26.34 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.15%** ($0.50 per share, trailing). Teradyne Inc. yields 0.15%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 14%** (10% of free cash flow). 14% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 12**. 12 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 3.7%/yr** (1-yr 0.0%). The dividend has grown 3.7% a year over five years.

## Analyst view
- **Analyst consensus: buy** (15 analysts). 15 analysts cover Teradyne Inc.; the consensus is buy, with an average price target of $446.47 (+25% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 199.8%** (YTD 84.6%, 3-mo -0.3%). The shares are up 199.8% over twelve months including dividends.
- **From 52-week high: -26.8%** (225.9% above the low). Trading 27% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 47**. An RSI of 47 is neutral.
- **Beta (1 yr): 3.20** (volatility 76%). Beta of 3.20 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=TER · Page: https://foliofundamentals.com/stocks/ter

Not investment advice.