We publish no single base value for Teradyne. Our valuation methods put it between $1,198.54 and $2,474.07 a share. The valuation code's reason: no point fair value: the two anchors behind it compound the same growth rate and differ only in how they end — a perpetuity at the terminal rate against a multiple on the final year — so the midpoint between them measures terminal treatment rather than what the business is worth. The published range is the same reading with the false precision removed: read it as the span the method supports, and treat neither edge as a point estimate.
| Method | Value | vs price | Basis |
|---|---|---|---|
| Discounted cash flow | $2,474.07 | +838.0% | free cash flow $1.02bn, growth 69.8% for 5 years, then fading to 3% over 5 more, discounted at 11.38%; plus net cash $2.09 a share; stress floor $349.58 |
| Exit multiple (P/E) | $1,198.54 | +354.4% | earnings per share $9.44 valued at 33.22× (the stock's own median P/E) in 7 years, discounted back |
| Sum of the parts | — | — | no sum of the parts: this run holds no segment disclosure for the name |
| Price to sales | — | — | not reached: the cash-flow or earnings methods produced an anchor, so this fallback was not run |
| Tangible book | — | — | used only for lenders, where book value is the business |
| Price to FFO (REITs) | — | — | used only for REITs |
Each working is rebuilt by code from the valuation's own figures and checked against the published value.
The discount rate:
| Risk-free rate | 5.13% (10-year US Treasury yield) |
| Company's own beta | 1.73 (5 years of monthly returns against the S&P 500; standard error 0.37) |
| Peer beta | 1.32 (median of 73 S&P 500 Information Technology companies) |
| Blend of own and peers | 1.58 (62% own, 38% peers, weighted by how precisely the company's own beta is measured) |
| Adjusted beta | 1.39 (0.67 × 1.58 + 0.33, pulled toward the market's 1.0) |
| Equity risk premium | 4.5% |
| Discount rate = risk-free + adjusted beta × premium | 11.38% |
Free cash flow grows 69.80% a year for 5 years, then fades in equal steps toward 3% over 5 more; each year is discounted by 1 ÷ (1 + rate)^year:
| Year | Growth | Free cash flow | Discount factor | Present value |
|---|---|---|---|---|
| Now | — | $1.02bn | — | — |
| Year 1 | 69.80% | $1.74bn | 0.8978 | $1.56bn |
| Year 2 | 69.80% | $2.95bn | 0.8060 | $2.38bn |
| Year 3 | 69.80% | $5.02bn | 0.7236 | $3.63bn |
| Year 4 | 69.80% | $8.52bn | 0.6497 | $5.53bn |
| Year 5 | 69.80% | $14.47bn | 0.5833 | $8.44bn |
| Year 6 | 58.67% | $22.95bn | 0.5236 | $12.02bn |
| Year 7 | 47.53% | $33.86bn | 0.4701 | $15.92bn |
| Year 8 | 36.40% | $46.19bn | 0.4221 | $19.50bn |
| Year 9 | 25.27% | $57.86bn | 0.3789 | $21.93bn |
| Year 10 | 14.13% | $66.04bn | 0.3402 | $22.47bn |
| Terminal value = year-10 cash flow × (1 + 3%) ÷ (11.38% − 3%) | $811.20bn |
| Terminal value in today's money | $275.97bn |
| Present value of years 1–10 | $113.37bn |
| Total present value | $389.34bn |
| Shares outstanding | 157.50m |
| Cash flows per share = total ÷ shares | $2,471.98 |
| Plus net cash per share | $2.09 |
| Value per share | $2,474.07 |
How the DCF value moves with the discount rate and the starting growth (the middle cell is the published value):
| Discount rate | Growth 64.8% | Growth 69.8% | Growth 74.8% |
|---|---|---|---|
| 10.38% | $2,350.11 | $2,949.16 | $3,682.49 |
| 11.38% | $1,974.59 | $2,474.07 | $3,084.92 |
| 12.38% | $1,684.57 | $2,107.37 | $2,623.96 |
The same DCF at each beta, starting growth unchanged:
| Beta | Value | Discount rate | DCF value |
|---|---|---|---|
| Company's own beta | 1.73 | 12.91% | $1,945.58 |
| Peer beta | 1.32 | 11.07% | $2,610.09 |
| Adjusted beta (used) | 1.39 | 11.38% | $2,474.07 |
Earnings per share grow on the same fading path as the DCF:
| Year | Growth | Earnings per share |
|---|---|---|
| Now | — | $9.44 |
| Year 1 | 69.80% | $16.04 |
| Year 2 | 53.10% | $24.55 |
| Year 3 | 40.57% | $34.51 |
| Year 4 | 31.18% | $45.27 |
| Year 5 | 24.14% | $56.20 |
| Year 6 | 18.85% | $66.80 |
| Year 7 | 14.89% | $76.74 |
| Earnings per share in year 7 | $76.74 |
| Exit P/E (the stock's own median P/E) | 33.22× |
| Value in 7 years = earnings × P/E | $2,549.41 |
| Discounted at 11.38% over 7 years: ÷ 2.1271 | $1,198.54 |
We publish no single base value for Teradyne. Our valuation methods put it between $1,198.54 and $2,474.07 a share. The valuation code's reason: no point fair value: the two anchors behind it compound the same growth rate and differ only in how they end — a perpetuity at the terminal rate against a multiple on the final year — so the midpoint between them measures terminal treatment rather than what the business is worth. The published range is the same reading with the false precision removed: read it as the span the method supports, and treat neither edge as a point estimate.
One-year price simulation: a 10% chance the price is below $75.63 and a 10% chance it is above $598.24 in a year; a 40% chance it is higher than today's $263.75, from 80.28% volatility. The simulation assumes the price drifts up at our discount rate of 11.38% a year.
At $263.75 the price implies free cash flow growing 24.3% a year for five years and then fading toward 3% over five more; its revenue has grown 69.8%.
| Week | Price | Base value |
|---|---|---|
| 2 Oct 2026 | $449.04 | $218.75 |
| 9 Oct 2026 | $402.68 | $220.18 |
| 16 Oct 2026 | $325.00 | — |
| 23 Oct 2026 | $308.85 | — |
| 30 Oct 2026 | $274.37 | — |
| 6 Nov 2026 | $218.22 | $1,218.06 |
| 12 Nov 2026 | $263.75 | — |
Data as of 12 Nov 2026; financials to 30 Sep 2026. Sources: company filings via EODHD, SEC EDGAR, US Treasury. How these values are computed. Not investment advice.
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