---
title: Teradyne (TER) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/ter
ticker: TER
as_of: 2026-10-17
sector: Technology
industry: Semiconductors
---
# Teradyne (TER)

Teradyne (TER) closed at $325.00 on Oct 16, 2026, overvalued by 254% vs its model value of $91.90 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $325.00 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $91.90 |
| Price vs model | overvalued by 254% vs model |
| Range of that model | $68.79 – $139.02 |
| Market value | $50.8B |
| P/E (fiscal 2025) | 93.7 |
| Net margin (fiscal 2025) | 17.4% |
| Free cash flow (fiscal 2025) | $450.4M |
| Dividend yield (trailing twelve months) | 0.16% |
| Beta | 1.75 |
| Cost of capital (WACC) | 11.28% |
| Business classification | Cyclical (Low/slowing growth (~9% recent), Moderate margins (17% net margin), Highly cyclical earnings) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Best performing this year | #25 | +67.9% | https://sweetvaluelab.com/lists/best-performing-this-year |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 0.16% |
| Dividends per share, last 12 months | $0.51 |
| Dividends / free cash flow (fiscal 2025) | 16.9% |
| Raised | — |
| Growth over 5 years | 5.0% a year |
| Latest payment | $0.13, ex-date Sep 4, 2026, paid Sep 25, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Aug 31, 2021 | $0.40 |
| To Aug 30, 2022 | $0.43 |
| To Aug 31, 2023 | $0.44 |
| To Sep 5, 2024 | $0.47 |
| To Sep 5, 2025 | $0.48 |
| Trailing twelve months (to Sep 4, 2026) | $0.51 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $91.90 | $68.79 | $139.02 |
| DCF · Perpetuity growth · 10y | cross check | $132.93 | $98.51 | $202.74 |
| DCF · EBITDA exit · 5y | cross check | $385.24 | $318.89 | $461.96 |
| DCF · EBITDA exit · 10y | cross check | $455.60 | $350.37 | $590.93 |
| P/E · peers | cross check | $287.72 | $136.84 | $332.36 |
| P/E · own history | cross check | $208.79 | $143.43 | $303.38 |
| PEG | sanity check | $230.17 | $230.17 | $230.17 |
| EV/EBITDA · peers | cross check | $188.63 | $142.96 | $395.86 |
| EV/Revenue · peers | cross check | $196.28 | $114.85 | $262.73 |
| Earnings power value | cross check | $28.60 | $25.31 | $32.89 |
| Dividend discount | cross check | $9.23 | $6.88 | $12.13 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 8 open-market sales ($4.2M); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Oct 1, 2026 | JOHNSON MERCEDES | Director | Open-market sell (10b5-1 plan) | 167 | $67,284.3 |
| Sep 24, 2026 | Herweck Peter | Director | Grant / award | 77 | $0 |
| Sep 25, 2026 | Herweck Peter | Director | Other | 4 | $0 |
| Sep 24, 2026 | TUFANO PAUL J | Director | Grant / award | 141 | $0 |
| Sep 25, 2026 | TUFANO PAUL J | Director | Other | 19 | $0 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Aug 10, 2026 | 8-K | 1.01 Entry into a Material Agreement; 2.03 Creation of a Direct Financial Obligation; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/97210/000119312526342367/ter-20260807.htm |
| Jul 31, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/97210/000119312526327715/ter-20260628.htm |
| Jul 29, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/97210/000119312526321933/ter-20260728.htm |
| May 11, 2026 | 8-K | 5.07 Submission of Matters to a Shareholder Vote | https://www.sec.gov/Archives/edgar/data/97210/000119312526215848/ter-20260508.htm |
| May 1, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/97210/000119312526201058/ter-20260329.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Stephen Mandel | 2026-06-30 | 1,493,080 | $722.4M |
| Bridgewater | 2026-06-30 | 98,627 | $47.7M |
| Lee Ainslie | 2026-06-30 | 2,101 | $1.0M |

3 tracked managers in all.

## About

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. These capabilities serve a wide array of sectors, including automotive, industrial, telecommunications, consumer electronics, mobile devices, cloud computing, and gaming. Notable offerings include the FLEX test platform, the J750 system for high-volume semiconductor testing, the Magnum platform specialized for memory components like flash and DRAM, and the ETS platform, which caters to the analog/mixed-signal markets for chip makers and outsourced assembly/test providers. Its clientele enc…

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Source: https://sweetvaluelab.com/stocks/ter (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.