What Is TER Fair Value?
Teradyne (TER) fair value estimate using multiple valuation models, updated daily.
As of July 16, 2026, Teradyne (TER) has a composite fair value estimate of $116.29 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $342.12, suggesting the stock is overvalued by 66.0%.
Data as of July 16, 2026 (today)
Composite Fair Value
Overvalued4 of 4 models$116.29
vs. current price of $342.12(-66.0%)
How Is TER Fair Value Calculated?
Four independent models estimate what TER is worth. Each uses different inputs and assumptions. The composite blends them by weight.
TER Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
35% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$89.47
-73.8%Overvalued
Inputs used
DDM (Dividend Discount Model)
15% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
$9.24
-97.3%Overvalued
Inputs used
TER Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
25% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$57.39
-83.2%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
25% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$254.87
-25.5%Overvalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $342.12 is 73.8% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $519.4M | $455.4M |
| Year 2 | $649.3M | $499.0M |
| Year 3 | $811.6M | $546.9M |
| Year 4 | $1.01B | $599.3M |
| Year 5 | $1.27B | $656.7M |
| Year 6 | $1.59B | $719.7M |
| Year 7 | $1.98B | $788.7M |
| Year 8 | $2.48B | $864.3M |
| Year 9 | $3.10B | $947.1M |
| Year 10 | $3.87B | $1.04B |
| Terminal Value | $34.30B | $9.20B |
What Are TER's Key Financial Metrics?
Earnings & Growth
Current Price
$342.12
EPS (TTM)
$5.23
Forward P/E
34.8
Profit Margin
22.6%
Cash & Balance Sheet
Free Cash Flow
298.3M
EBITDA
1.2B
Book Value
$20.08
Total Debt
82.4M
What Do Analysts Say About TER?
Low
$270.00
Average
$423.41
High
$550.00
Upside
+23.8%
TER Fair Value FAQ
What is the fair value of TER?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), TER's estimated fair value is $116.29. The stock is currently trading at $342.12, which makes it overvalued by our analysis.
How is TER's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is TER overvalued or undervalued?
Based on our analysis, TER is overvalued. The current price of $342.12 is 66.0% above our estimated fair value of $116.29.
What do Wall Street analysts say about TER?
17 analysts cover Teradyne with a consensus rating of "Buy." The average price target is $423.41, ranging from $270.00 to $550.00. This implies 23.8% upside from the current price.