What is Teradyne, Inc worth?
With the base-case assumptions below, a discounted cash flow model on Teradyne, Inc's reported free cash flow gives $41.69 per share. The share price was $398.38 on September 25, 2026, 856% above that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | -4.5% | 10.0% | $26.87 | -93% |
| Base | 0.5% | 9.0% | $41.69 | -90% |
| Bull | 5.5% | 8.0% | $70.54 | -82% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $51.96 | $55.04 | $58.80 | $63.51 | $69.56 |
| 8.0% | $44.34 | $46.33 | $48.69 | $51.53 | $54.99 |
| 9.0% | $38.74 | $40.11 | $41.69 | $43.52 | $45.70 |
| 10.0% | $34.47 | $35.44 | $36.54 | $37.80 | $39.25 |
| 11.0% | $31.09 | $31.80 | $32.60 | $33.49 | $34.51 |
Where the presets come from
Base: years 1 to 5 grow at Teradyne, Inc's revenue growth rate over the last 5 fiscal years (0.4% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions