2 models fit Teradyne Inc. Common Stock and they disagree: 0 of 2 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
Large premium(i)
Valued as a cyclical company: P/E comparison, EV/EBITDA comparison, Discounted cash flow, and Graham number.
ACCE opinionTeradyne Inc. Common Stock (TER)
Fair value (2 models)
$102
ACCE price target
$372
Rating
Overvalued
Horizon
12 months
Fair value published on 19 Oct 2026, 18:04 CEST; previously $50.03 since 7 Oct 2026, 00:00 CEST.
ACCE price target published on 20 Sept 2026, 00:00 CEST.
Rating published on 19 Oct 2026, 18:04 CEST.
Price used: $309 at the close on 23 Oct 2026, 22:00 CEST.
Models: P/E comparison and EV/EBITDA comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
201.9% above
-66.9% to fair value
ACCE score
67
out of 100
Analysts
71% buy
17 covering
P/E
47.4x
forward 30.7x
1-year return
+112.9%
Dividend yield
0.14%
Teradyne Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Teradyne manufactures automated test equipment and software for semiconductor manufacturers and chipmakers, with products ranging from wafer testers to handlers that move chips through production lines. The company benefits from a structural shift toward more complex chips requiring longer test times per unit, which increases the dollar value of equipment per wafer fab. Revenue growth of 103.9% reflects both AI-driven demand for advanced semiconductors and capacity expansion by foundries and memory makers, with forward PE of 34.6 suggesting the market has priced in meaningful deceleration from current levels. Operating margins of 33.2% on gross margins of 59.2% indicate pricing power and operational leverage, though the 55.3 trailing PE reflects the stock's run-up on AI enthusiasm. The risk is binary: if semiconductor capex cycles soften or customers delay equipment purchases, the company's high fixed-cost structure could compress margins quickly, making current valuation vulnerable to a miss on near-term guidance.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Valuation multiple compression
P/E 55.3 and EV/EBITDA 41.3 are elevated even for semiconductor equipment. Forward P/E 34.6 implies significant earnings deceleration priced in.
high
Revenue growth cliff ahead
YoY revenue +103.9% is unsustainable. 5-year CAGR +0.4% shows this is a cyclical spike, not structural growth. QoQ +3.6% suggests momentum already fading.
moderate
Insider selling without offsetting buys
Last 10 disclosures show $5.37M in sales, zero buys. Insiders are exiting while valuation multiples remain stretched.
moderate
ACCE score deterioration
Score fell 4 points in 90 days (77 to 73). Valuation component (V:14) is deeply depressed, signaling overpricing relative to model.
AI research notes
AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue surged 103.9% year over year with net margin of 25.8%, showing Teradyne is capturing outsized profits from current demand cycles.
Return on equity of 36.5% and minimal debt at 0.03x leverage demonstrate the company generates exceptional returns on shareholder capital.
71% of analysts rate the stock Buy or Strong Buy with a mean price target 10.9% above current price, suggesting upside from consensus.
Why it could disappoint
Trailing P/E of 55.3x and forward P/E of 34.6x exceed the sector median of 29.3x, pricing in sustained growth that may not materialize.
Five-year revenue growth averaged only 0.4% annually, so the current 103.9% spike likely reflects a temporary cycle rather than a structural shift.
Free cash flow yield of 0.7% is extremely thin, leaving minimal margin for error if revenue or margins normalize from peak levels.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 27, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where TER's valuation models land
Price
$308.85
Model fair value
$102
Model range
$85.54 to $119
Fair value $102
Price $309
The price is above the whole model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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