Teradyne, Inc. Common Stock (TER) Valuation
Historical valuation analysis based on 1279 data points (2021-09-14 to 2026-10-16)
Teradyne provides testing equipment, including automated test equipment for semiconductors, system testing for hard disk drives, circuit boards, and electronics systems, and wireless testing for de...
Teradyne, Inc. Common Stock (TER) currently trades at a P/E ratio of 44.17 (historical range: 15.50–123.58, median: 31.70), placing it at the 75th percentile — above its historical average, P/S ratio of 11.38 (range: 3.69–19.65, 85th percentile — expensive relative to its history), EV/EBITDA of 37.59 (range: 12.77–107.09, 75th percentile).
Over the historical period (2021-09-14 to 2026-10-16), Teradyne, Inc. Common Stock's P/E ratio has expanded by 102% over the observed period (from an average of 24.9 to 50.3).
Teradyne, Inc. Common Stock trades well above its own historical valuation range across most metrics.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 44.17 | 31.70 | 75th | above its historical average |
| P/S Ratio | 11.38 | 6.23 | 85th | expensive relative to its history |
| EV/EBITDA | 37.59 | 27.61 | 75th | above its historical average |
| FCF Yield | 1.57% | 2.61% | 17th | expensive relative to its history |
Teradyne, Inc. Common Stock (TER) Valuation & P/E History
Teradyne, Inc. Common Stock (TER) is a US-listed stock operating in the Technology sector, specifically the Instruments For Meas & Testing Of Electricity & Elec Signals industry currently trading at $322.00 with a market capitalization of $50.3 billion. This page provides historical valuation analysis for TER based on 1279 data points covering 2021-09-14 to 2026-10-16. The P/E ratio of 44.17 is above the historical median of 31.70, placing TER at the 75th percentile of its valuation range. The P/S ratio of 11.38 compares to a median of 6.23.
TER Valuation Metrics & Historical Range
The valuation table above shows Teradyne, Inc. Common Stock's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether TER is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests TER is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Teradyne, Inc. Common Stock.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is TER Overvalued or Undervalued?
Teradyne, Inc. Common Stock trades well above its own historical valuation range across most metrics. The overall valuation percentile of 78 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive TER is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full TER analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.TER trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.