Teradyne, Inc. (TER) Stock Analysis
Score BCompounder · Grade A · Bullish
$321.98
$155.80
-51.6%
6/10
A
Compounder
Investment Thesis
Price is above modeled value range. Quality supports holding but not attractive for new positions.
High-quality company trading above modeled fair value. Price above modeled entry range.
For New Investors
Price above modeled value range
For Current Holders
Quantitative score: neutral
Buy if
- Price drops 15-20% (improves asymmetry)
- Bull scenario catalysts materialize
- Market-wide correction creates opportunity
Sell if
- Bear scenario triggers occur
- Quality metrics deteriorate (ROIC declining)
- Better alternatives emerge
Valuation
Fair Value estimate: $155.80 (-51.6%). Overvalued vs fundamentals. (Methods diverge significantly. Conservative estimate shown.)
PEG-Based EPS
$397.93
FCF DCF Model
$34.86
EV/EBITDA
$102.72
Blended Fair Value
$155.80
Confidence
Low
Methods
PEG-Based EPS (conservative), FCF 2-Stage DCF, EV/EBITDA
Quality Analysis
119/120 points
Investable
ROE (3Y Avg)
18.9%
ROIC-WACC Spread
14.0%
D/E Ratio
0.1x
Current Ratio
1.8x
Interest Coverage
86x
FCF Positive Years
3/3
Quality Flags
- Leverage: D/E 0.1x (14/15 pts)
Market Sentiment
Wall Street Consensus
$370.00
+14.9% Upside
17 analysts
Range: $220.00 — $440.00
Rating: Buy
Our model is slightly more cautious than Wall Street.
Trend & Technical
Price ($321.50) is 43.1% above SMA 200 ($224.64). Bullish trend confirmed.
Tech Score 73/100 — Strong technical setup. Trend, momentum, and positioning aligned bullish.
Risk & Reward
Asymmetry Ratio
0.72:1
Expected Return
-2.2%
Bull Upside
+14.3%
Bear Downside
-19.7%
Poor asymmetry: 0.72:1 ratio. Risk exceeds potential reward.
Verdict: Unfavorable
Scenario Analysis
Bear
Base
Bull
Buy Zone & Action Plan
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AI Executive Summary
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Technical Analysis
RSI, MACD, moving averages, trend signals, and momentum indicators.
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Frequently Asked Questions
What is the fair value of TER?
Based on our multi-method conviction analysis, the estimated fair value of Teradyne, Inc. (TER) is $155.80. This is calculated by blending PEG-Based EPS (conservative), FCF 2-Stage DCF, EV/EBITDA and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is low.
Is TER a buy, sell, or hold?
TER currently has a HOLD rating with a conviction score of 6/10. Price is above modeled value range. Quality supports holding but not attractive for new positions. Price above modeled value range.
Is TER a high-quality stock?
Teradyne, Inc. has a quality grade of A (119/120 points), rated as Investable. Key metrics include ROE of 18.9%, ROIC-WACC spread of 14.0%, and D/E ratio of 0.1x.
What type of stock is TER?
TER is classified as a "compounder" in our framework. High P/E: 59.7x, Low dividend (reinvesting): 0.1%, Mature growth: 0.8%, High beta (cyclical behavior): 1.79, Strong ROE: 29.7%
What do Wall Street analysts say about TER?
17 Wall Street analysts have a consensus price target of $370.00 for TER, representing +14.9% upside. Targets range from $220.00 to $440.00. The consensus recommendation is "Buy". Our model is slightly more cautious than Wall Street.
What are the risks of investing in TER?
The risk/reward asymmetry ratio for TER is 0.72:1, rated as Unfavorable. Poor asymmetry: 0.72:1 ratio. Risk exceeds potential reward. The expected return is -2.2%, with bull case upside of +14.3% and bear case downside of -19.7%.
What is the current trend for TER?
TER is in a bullish trend. Price ($321.50) is 43.1% above SMA 200 ($224.64). Bullish trend confirmed. The technical score is 73/100.
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Last updated: May 19, 2026 · Framework version 3.7
This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.