Teradyne (TER)
Forward P/E 31.21x against a peer median of 24.15x gives a ratio of 1.29x, a premium that the exceptional-growth exception covers: latest-quarter revenue grew +103.9% YoY (PRIMARY/EDGAR) — more than double the +50% exceptional threshold — and PEG 0.87 is below ~1, so the premium is paid for by delivered growth rather than hope. Trailing P/E 37.15x is only modestly above the forward figure, so the price is not resting on thin trailing earnings. Delivered demand check: the Semiconductor equipment & materials group's median latest-quarter revenue growth was 24.8% year over year (SEC filings) — demand rising, and Teradyne is growing at roughly four times that pace on AI-chip test demand. The peer median rests on three usable multiples (one brief peer, Q, has null multiples), so confidence is a notch lower than for the full five-peer names.
What would change this label: Moves to OVERVALUED if revenue growth decelerates below +30% YoY while the forward P/E holds above ~31x, showing the premium outlived the growth that paid for it; moves to UNDERVALUED if the forward P/E compresses below ~22x (ratio under 0.90x) while revenue growth holds above +50% YoY.
Teradyne builds the machines that test chips before they ship, and AI chip production has sent its sales doubling — up about 104% last quarter. Its shares cost about 31 times expected profits, more than rival equipment makers at about 24 times, but the much faster growth covers that extra price. Fairly valued for now, with the usual warning that chip-equipment demand moves in cycles.
Both lines start at 100 on 2020-09-01. Over the full window Teradyne returned +279.24% and the S&P 500 +118.28% (price returns; dividends not reinvested). Worst peak-to-trough fall for Teradyne: -59.7% (2021-12-27 to 2025-04-08). Source: Nasdaq official daily history.
What the label rests on
Forward P/E 31.21x against a peer median of 24.15x gives a ratio of 1.29x, a premium that the exceptional-growth exception covers: latest-quarter revenue grew +103.9% YoY (PRIMARY/EDGAR) — more than double the +50% exceptional threshold — and PEG 0.87 is below ~1, so the premium is paid for by delivered growth rather than hope. Trailing P/E 37.15x is only modestly above the forward figure, so the price is not resting on thin trailing earnings. Delivered demand check: the Semiconductor equipment & materials group's median latest-quarter revenue growth was 24.8% year over year (SEC filings) — demand rising, and Teradyne is growing at roughly four times that pace on AI-chip test demand. The peer median rests on three usable multiples (one brief peer, Q, has null multiples), so confidence is a notch lower than for the full five-peer names. The company’s forward P/E is 31.2× against a peer median of 24.1×. Its own history: UNVERIFIED — no sourced range available. Sector demand read: Delivered demand check: the Semiconductor equipment & materials group's median latest-quarter revenue growth was 24.8% year over year (SEC filings) — demand rising. Latest-quarter sales growth was +103.9% versus a year earlier (SEC filings).
| Company | Price (Oct 27, 2026) | Forward P/E | Trailing P/E |
|---|---|---|---|
| Teradyne (TER) | $323.68 | 31.2× | 37.1× |
| Q | $118.75 | — | — |
| KLAC | $157.21 | 28.8× | 43.0× |
| LRCX | $248.30 | 24.1× | 37.0× |
| AMAT | $405.78 | 23.0× | 35.0× |
| Peer median | 24.1× |
Multiples: stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026. Peer set chosen by sector; the median is the middle value of the set. The label and its numbers were recorded in the programme’s label registry on Oct 28, 2026 and will be scored at 6 and 12 months.
Sales, profit and cash
Gross margin = gross profit divided by sales, from SEC filings.
Free cash flow = cash from operations minus spending on plant and equipment, both from the company’s SEC cash-flow statement. Gaps are quarters where that spending line is not separately tagged in the filings — shown as gaps, never estimated.
| Quarter | Sales | Gross margin | Net income | EPS (GAAP, diluted) | Free cash flow |
|---|---|---|---|---|---|
| Q/E Jun 2026 2026-06-28 | $1.3B | 59.8% | $375M | 2.38 | $378M |
| Q/E Mar 2026 2026-03-29 | $1.3B | 60.9% | $399M | 2.53 | $200M |
| Q/E Dec 2025 2025-12-31 | $1.1B | 57.2% | $257M | — | $219M |
| Q/E Sep 2025 2025-09-28 | $769M | 58.4% | $120M | 0.75 | $2M |
| Q/E Jun 2025 2025-06-29 | $652M | 57.2% | $78M | 0.49 | $132M |
| Q/E Mar 2025 2025-03-30 | $686M | 60.6% | $99M | 0.61 | $98M |
| Q/E Dec 2024 2024-12-31 | $753M | 59.4% | $146M | — | $225M |
| Q/E Sep 2024 2024-09-29 | $737M | 59.2% | $146M | 0.89 | $114M |
| Q/E Jun 2024 2024-06-30 | $730M | 58.3% | $186M | 1.14 | $171M |
| Q/E Mar 2024 2024-03-31 | $600M | 56.6% | $64M | 0.40 | $-37M |
| Q/E Dec 2023 2023-12-31 | $671M | 56.6% | $117M | — | $204M |
| Q/E Oct 2023 2023-10-01 | $704M | 56.6% | $128M | 0.78 | $140M |
The last twelve reported quarters. Full 24-quarter history sits in the data pack behind this page. A dash means the figure is not tagged as a standalone quarter in the company’s SEC facts (the usual case is the fourth quarter, which many companies only report inside the full-year filing) — it is missing, not zero.
Earnings: getting better or worse?
Each box is one quarter’s earnings per share (EPS). Green means EPS was higher than the same quarter a year earlier; red means lower; a dash means the figure is not tagged in the filings.
Basis: GAAP diluted EPS from SEC company facts, compared with the same quarter a year earlier.
Key facts
| Item | Value |
|---|---|
| Company (legal name in filings) | TERADYNE, INC |
| Chief executive | Greg Smith (source: https://investors.teradyne.com/company-information/executive-team) |
| Sector | Technology — Semiconductor Materials & Equipment — automated test equipment for semiconductors, plus industrial automation and robotics |
| Share price (Oct 27, 2026) | $323.68 |
| Market value (market cap) | $50.6B — share price times shares outstanding of 156,340,750 (SEC filings; SEC EDGAR dei EntityCommonStockSharesOutstanding (latest)) |
| Sales, last twelve months | $4.5B |
| Net income, last twelve months | $1.2B |
| Free cash flow, last twelve months | $800M |
| Latest reported quarter | Q/E Jun 2026 (of 24 quarters in the data pack) |
| Six-year price return vs S&P 500 | +279.24% vs +118.28% |
| Worst peak-to-trough fall | -59.7% (2021-12-27 to 2025-04-08) |
What we could not verify
- TTM GAAP diluted EPS could not be summed from company facts because at least one of the last four quarters (typically Q4) has no standalone tagged EPS; trailing P/E is therefore taken from the labelled secondary source in valuation_label.md.
- Own-history P/E range not yet compiled for this company in the Phase 1 batch run; the label rests on peer-median, growth and PEG evidence.
- Peer-set caveat: the brief supplies four peers and one of them (Q) has null multiples, so the peer median of 24.15x is computed over three usable companies rather than the standard five.
- Multiples provenance: the brief's fetch notes record that the direct statistics-page fetch failed with a 429 rate limit and the multiples were taken from the stockanalysis.com statistics result as printed in a search snippet — same source, indirect capture.
- Guidance record (each quarter scored against the guidance the company gave the quarter before) is not yet compiled for this company — it is a Phase 2 layer. The earnings strip below therefore uses reported EPS versus a year earlier, which is fully sourced from filings.
The IT factor — the most exciting thing the market is overlooking — is not assessed on an X-Ray page. It belongs to the Deep Dive (Phase 2), where it gets the evidence standard it needs. Leadership-era scoring (the six years split by chief executive) is likewise a Phase 2 layer; this page names the current chief executive only, from a sourced profile.
Sources
- SEC EDGAR submissions — Filing index; company legal name.
https://data.sec.gov/submissions/CIK0000097210.json - SEC EDGAR company facts — Quarterly financial spine: revenue, gross profit, net income, GAAP diluted EPS, operating cash flow, PP&E capex, buybacks, dividends, diluted shares.
https://data.sec.gov/api/xbrl/companyfacts/CIK0000097210.json - Nasdaq official daily history — Daily closes for the company; SPY (assetclass=etf) saved as raw/nasdaq_spy_raw.json over identical dates.
https://api.nasdaq.com/api/quote/TER/historical?assetclass=stocks - Valuation multiples and peer figures — stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026; see valuation_label.md in the data pack.
Conventions: earliest-filed value per period, as first reported; cash-flow years-to-date differenced quarter by quarter; EPS never differenced; free cash flow = operating cash flow minus plant-and-equipment spending. This page is a dated snapshot — updates are new versions, never silent edits.