Stock analysis · Bull Rankings model

TER analysis

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

Robotics & AutomationSemiconductors
TER
Teradyne, Inc. · Semiconductor Equipment & Materials
FCF$800mC+
Rev+57.9%A
D/E0.03A-
P/E51.5xC+
PEG0.97B+
64.1Score
$375.74$58.7B
1Y Target$449.80Analyst consensus · 15 analysts
5Y Target$658.55Compound horizon
10Y Target$976.92Long-dated conviction
FCF$800mTTM
C+
FCF $800m — respectable but not differentiating
Rev+57.9%TTM YoY
A
Revenue +57.9% — hypergrowth, top decile
D/E0.03
A-
D/E 0.03 — less debt than most Technology peers (≈25th pctile)
P/E51.5x
C+
P/E 51.5 — above the Technology median (≈75th pctile)
PEG0.97
B+
PEG 0.97 — near fair value, classic Lynch benchmark (1.0)

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 · 64.1
Quality90.2
Growth78.6
Value37.1
Why this score
  • Durable high returns
Entry · Margin of safety
52-week rangeNear 52-week high
23% off the 12-month high
vs DCF fair value415% aboveest. fair value ~$73
What the price assumes: free cash flow compounding above 60% a year for the next decade — vs the ~25% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability54% · Agross profit ÷ total assets (Novy-Marx)
ROIC28.1% · Areturn on invested capital — not score-weighted

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
Teradyne’s dominant Semiconductor Test platform, especially the J750 system for high‑volume microcontroller testing, is riding a 57.9% YoY revenue surge as automotive and industrial chips explode, while its 25.8% profit margin and $800 m of free cash flow give it the cash to reinvest and outpace peers. The Bull Rankings model scores Quality at 90, confirming that this cash‑rich, high‑margin engine can keep compounding, and the 1‑yr analyst consensus of $449.80 already reflects near‑term upside. The thesis hinges on sustaining the semiconductor test demand that fuels the current growth trajectory.
Moat
Teradyne’s moat lives in its integrated test ecosystem for wafer‑level and package testing across automotive, industrial and communications chips, where switching costs are steep because customers embed its FLEX and J750 platforms into their production lines. Its 33.5% ROE stems from pricing power as the go‑to supplier for high‑precision test equipment, a capability that rivals cannot replicate quickly without massive R&D spend.
Risk
The biggest headwind is the lofty 55.6× P/E, which assumes the market’s 60%+ free‑cash‑flow growth implied by the reverse‑DCF will materialize; any slowdown in semiconductor demand or a shift to cheaper test alternatives would crush that multiple. A bear would see the stock tumble if revenue growth falls back below 30% YoY, dragging the P/E toward sector norms and confirming the over‑optimism baked into today’s price.
Horizon
1-3 yr $449.80 (15-analyst consensus) — fundamentals + valuation re-rating. 5 yr $658.55 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $976.92 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.

TER vs the Top Picks average

PillarTERBook avgDiff
Quality0.900.84+0.06
Growth0.790.84-0.05
Value0.370.78-0.41

Averaged across the 30 names in today's Top Picks (mean score 81.5). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
+15.6 over 45 daily scores
From 48.5 (Jun 22) → 64.1 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Analyst estimate revisions

30-day change+12.3%
90-day change+21.4%
Forward EPS estimate$11.55

Over the last 90 days, what analysts expect TER to earn is materially higher (+21.4%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →

Shares to buy
5
Position size
$1,879
3.8% of portfolio
Stop price
$281.81
25% below $375.74
$ at risk if stopped
$469.68
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 64.1 out of 100 on the Bull Rankings quality-growth model — a solid, above-average 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 Rev (A), D/E (A-) and PEG (B+). On valuation, TER sits about 415% above our discounted-cash-flow fair value — the current price implies free-cash-flow growth above 60% a year for the next decade.

Is TER a good stock to buy?

Bull Rankings scores TER 64.1 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by Rev (A), D/E (A-) and PEG (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 64.1 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 Rev (A), D/E (A-) and PEG (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is TER overvalued or undervalued?

Based on $375.74, TER sits about 415% above our discounted-cash-flow fair value — the current price implies free-cash-flow growth above 60% a year for the next decade. It trades at a 51.5x 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?

The biggest headwind is the lofty 55.6× P/E, which assumes the market’s 60%+ free‑cash‑flow growth implied by the reverse‑DCF will materialize; any slowdown in semiconductor demand or a shift to cheaper test alternatives would crush that multiple. A bear would see the stock tumble if revenue growth falls back below 30% YoY, dragging the P/E toward sector norms and confirming the over‑optimism baked into today’s price.

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 advisor.

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