Stock analysis · Bull Rankings model

TER analysis

Teradyne, Inc.Semiconductor Equipment & Materials. Scored on the same transparent 7-signal model behind the daily rankings.

TER
Teradyne, Inc. · Semiconductor Equipment & Materials
FCF$553mC+
Rev+13.1%B+
D/E0.03A-
P/E67.4xC
PEG1.50B
52.5Score
$362.75$56.8B
1Y Target$423.41Analyst consensus · 17 analysts
5Y Target$619.92Compound horizon
10Y Target$919.61Long-dated conviction
FCF$553mTTM
C+
FCF $553m — respectable but not differentiating
Rev+13.1%TTM YoY
B+
Revenue +13.1% — above sector median, healthy trajectory
D/E0.03
A-
D/E 0.03 — less debt than most Technology peers (≈25th pctile)
P/E67.4x
C
P/E 67.4 — expensive vs Technology peers (≈90th pctile)
PEG1.50
B
PEG 1.50 — acceptable premium for growth

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 52.5
Quality0.89
Growth0.72
Value0.22
Why this score
  • Buying back stock
  • Durable high returns
Entry · Margin of safety
52-week rangeNear 52-week high
26% off the 12-month high
vs DCF fair value602% aboveest. fair value ~$52
Quality signals · context only
Gross profitability50% · Agross profit ÷ total assets (Novy-Marx)
ROIC22.6% · Areturn on invested capital — not score-weighted
Why now
Semiconductor Equipment & Materials · market cap $56.8b. Down 26% from 52-week high of $487.91 — deep drawdown territory. Revenue growing +13%, comfortably above the S&P median. 17 sell-side analysts rate this a Buy with a mean 1-yr target of $423.41 (implying +17% upside).
Moat
Net margin 23% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 27% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. $56.8b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk
Trailing P/E 67.4x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. Beta 1.74 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. P/S 15.0x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard.
Horizon
1-3 yr $423.41 (17-analyst consensus) — fundamentals + valuation re-rating. 5 yr $619.92 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $919.61 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Shares to buy
5
Position size
$1,814
3.6% of portfolio
Stop price
$272.06
25% below $362.75
$ at risk if stopped
$453.44
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Teradyne, Inc. (TER): score, valuation & FAQ

Teradyne, Inc. (TER) is a Semiconductor Equipment & Materials company that scores 52.5 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are D/E (A-) and Rev (B+). On valuation, TER sits about 602% above our discounted-cash-flow fair value (i.e. the DCF flags it as rich).

Is TER a good stock to buy?

Bull Rankings scores TER 52.5 out of 100 on its quality-growth model, which is a middling reading. That is driven by D/E (A-) and Rev (B+). A score is a quantitative screen of Teradyne, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does TER score 52.5 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). TER earns its highest marks on D/E (A-) and Rev (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is TER overvalued or undervalued?

Based on $362.75, TER sits about 602% above our discounted-cash-flow fair value (i.e. the DCF flags it as rich). It trades at a 67.4x× P/E (graded C). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in TER?

Trailing P/E 67.4x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. Beta 1.74 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. P/S 15.0x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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