What Is TER Fair Value?
Teradyne (TER) fair value estimate using multiple valuation models, updated daily.
As of October 14, 2026, Teradyne (TER) has a composite fair value estimate of $140.80 based on four valuation models: DCF (41% weight), Graham Number (29% weight), PEG (29% weight), and DDM (0% weight). The current market price is $359.44, suggesting the stock is overvalued by 60.8%.
Data as of October 14, 2026 (today)
Composite Fair Value
Overvalued3 of 4 models$140.80
vs. current price of $359.44(-60.8%)
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)
41% 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 →
$94.46
-73.7%Overvalued
Inputs used
DDM (Dividend Discount Model)
0% 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 →
N/A
This stock does not pay a dividend, so the DDM cannot be applied. The composite adjusts by redistributing this weight to the other models.
TER Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
29% 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 →
$67.03
-81.4%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
29% 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.
$256.10
-28.7%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 $359.44 is 73.7% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $546.7M | $479.2M |
| Year 2 | $683.4M | $525.0M |
| Year 3 | $854.3M | $575.2M |
| Year 4 | $1.07B | $630.2M |
| Year 5 | $1.33B | $690.5M |
| Year 6 | $1.67B | $756.5M |
| Year 7 | $2.09B | $828.9M |
| Year 8 | $2.61B | $908.1M |
| Year 9 | $3.26B | $995.0M |
| Year 10 | $4.07B | $1.09B |
| Terminal Value | $36.02B | $9.64B |
What Are TER's Key Financial Metrics?
Earnings & Growth
Current Price
$359.44
EPS (TTM)
$7.28
Forward P/E
30.8
Profit Margin
25.8%
Cash & Balance Sheet
Free Cash Flow
437.4M
EBITDA
1.5B
Book Value
$21.97
Total Debt
100.1M
What Do Analysts Say About TER?
Low
$350.00
Average
$446.47
High
$550.00
Upside
+24.2%
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 $140.80. The stock is currently trading at $359.44, 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 $359.44 is 60.8% above our estimated fair value of $140.80.
What do Wall Street analysts say about TER?
15 analysts cover Teradyne with a consensus rating of "Buy." The average price target is $446.47, ranging from $350.00 to $550.00. This implies 24.2% upside from the current price.