Latest Ratios: P/E Ratio 25.5x · EV/EBITDA 11.3x · ROE 71.6%. (2005–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.3B | $2.9B | $3.1B | $4.5B | $3.6B | $4.8B | $2.5B | $3.1B | $4.6B | $4.8B | $3.6B |
| Enterprise Value | $3.3B | $3.0B | $3.2B | $4.6B | $3.6B | $4.8B | $2.6B | $3.2B | $4.5B | $4.5B | $3.2B |
| P/E Ratio → | 25.53 | 22.55 | 26.85 | 71.33 | 108.58 | 32.67 | 19.37 | — | 153.44 | — | 28.60 |
| P/S Ratio | 1.96 | 1.77 | 1.75 | 2.43 | 1.98 | 2.50 | 1.37 | 1.61 | 2.15 | 2.24 | 1.54 |
| P/B Ratio | 14.47 | 12.78 | 23.00 | 33.00 | 13.80 | 10.42 | 6.27 | 11.67 | 9.39 | 7.24 | 3.68 |
| P/FCF | 11.39 | 10.28 | 11.04 | 12.55 | 8.84 | 11.10 | 11.61 | 34.35 | 22.79 | 20.41 | 10.73 |
| P/OCF | 10.68 | 9.64 | 10.10 | 11.88 | 8.50 | 10.36 | 9.39 | 20.66 | 12.77 | 14.93 | 8.01 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.81 | 1.84 | 2.51 | 2.02 | 2.49 | 1.43 | 1.70 | 2.07 | 2.10 | 1.36 |
| EV / EBITDA | 11.27 | 10.20 | 10.40 | 15.26 | 14.40 | 12.57 | 13.94 | 21.39 | 26.04 | 22.41 | 8.80 |
| EV / EBIT | 16.22 | 16.90 | 16.66 | 31.36 | 39.88 | 21.90 | 873.88 | 248.47 | 91.39 | 62.02 | 13.59 |
| EV / FCF | — | 10.52 | 11.61 | 12.98 | 9.01 | 11.05 | 12.14 | 36.29 | 21.95 | 19.10 | 9.51 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 59.7% | 59.7% | 60.5% | 60.8% | 60.2% | 61.9% | 55.5% | 50.3% | 47.4% | 47.4% | 51.2% |
| Operating Margin | 12.3% | 12.3% | 11.9% | 10.1% | 6.6% | 12.1% | 0.9% | 0.3% | 2.0% | 3.0% | 10.0% |
| Net Profit Margin | 7.8% | 7.8% | 6.5% | 3.4% | 1.8% | 7.7% | 7.0% | -1.3% | 1.4% | -3.1% | 5.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 71.6% | 71.6% | 85.1% | 31.6% | 9.2% | 34.2% | 39.0% | -6.3% | 5.2% | -8.2% | 13.1% |
| ROA | 7.5% | 7.5% | 6.4% | 3.2% | 1.6% | 6.7% | 6.1% | -1.1% | 1.2% | -2.7% | 5.0% |
| ROIC | 52.4% | 52.4% | 54.2% | 45.4% | 23.1% | 36.3% | 2.5% | 1.2% | 9.5% | 10.4% | 24.1% |
| ROCE | 25.0% | 25.0% | 25.3% | 19.7% | 11.0% | 19.4% | 1.3% | 0.5% | 3.0% | 4.0% | 13.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.44 | 2.44 | 4.33 | 4.74 | 2.47 | 1.24 | 1.61 | 2.55 | 1.10 | 1.16 | 0.58 |
| Debt / EBITDA | 1.90 | 1.90 | 1.86 | 2.12 | 2.53 | 1.51 | 3.42 | 4.42 | 3.16 | 3.85 | 1.58 |
| Net Debt / Equity | — | 0.30 | 1.17 | 1.14 | 0.26 | -0.04 | 0.28 | 0.66 | -0.35 | -0.47 | -0.42 |
| Net Debt / EBITDA | 0.23 | 0.23 | 0.50 | 0.51 | 0.27 | -0.05 | 0.61 | 1.15 | -0.99 | -1.54 | -1.13 |
| Debt / FCF | — | 0.24 | 0.56 | 0.43 | 0.17 | -0.05 | 0.53 | 1.94 | -0.84 | -1.31 | -1.22 |
| Interest Coverage | — | — | 6.66 | 4.90 | 3.79 | 8.38 | 0.11 | 0.50 | 2.23 | 4.87 | 19.42 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.92 | 0.92 | 0.81 | 0.87 | 1.02 | 1.07 | 1.10 | 1.14 | 1.42 | 1.65 | 2.24 |
| Quick Ratio | 0.90 | 0.90 | 0.79 | 0.86 | 1.01 | 1.05 | 1.07 | 1.11 | 1.39 | 1.62 | 2.20 |
| Cash Ratio | 0.54 | 0.54 | 0.45 | 0.49 | 0.57 | 0.57 | 0.56 | 0.56 | 0.71 | 1.02 | 1.35 |
| Asset Turnover | — | 0.93 | 1.03 | 0.98 | 0.89 | 0.88 | 0.84 | 0.92 | 0.92 | 0.84 | 0.97 |
| Inventory Turnover | 51.54 | 51.54 | 38.44 | 55.23 | 89.25 | 28.12 | 28.17 | 30.45 | 40.64 | 37.80 | 33.35 |
| Days Sales Outstanding | — | 55.09 | 51.31 | 59.54 | 76.66 | 80.16 | 82.70 | 79.77 | 99.18 | 93.79 | 86.14 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.9% | 4.4% | 3.7% | 1.4% | 0.9% | 3.1% | 5.2% | — | 0.7% | — | 3.5% |
| FCF Yield | 8.8% | 9.7% | 9.1% | 8.0% | 11.3% | 9.0% | 8.6% | 2.9% | 4.4% | 4.9% | 9.3% |
| Buyback Yield | 4.3% | 4.8% | 7.0% | 6.9% | 10.9% | 5.1% | 4.0% | 9.8% | 6.5% | 7.3% | 2.3% |
| Total Shareholder Yield | 4.3% | 4.8% | 7.0% | 6.9% | 10.9% | 5.1% | 4.0% | 9.8% | 6.5% | 7.3% | 2.3% |
| Shares Outstanding | — | $97M | $98M | $102M | $106M | $113M | $112M | $114M | $121M | $126M | $132M |
Cloud transition execution risk
According to current market data, Teradata trades at a forward P/E of 12.38, which, when compared to the high-growth cloud peer group, suggests investors are heavily discounting the firm's terminal value due to the ongoing revenue cannibalization inherent in its cloud-first pivot.
The disparity between the TTM P/E of 24.33 and the forward multiple indicates that the market anticipates a significant earnings recovery, likely driven by the maturation of the cloud subscription model. However, the PEG ratio of 7.90 suggests that current growth expectations are priced at a premium relative to the actual top-line expansion, warranting caution regarding the sustainability of this valuation.
Based on reported figures, Teradata's ROIC has fluctuated significantly from a negative 9.1% in 2026Q1 to a peak of 14.8% in 2025Q1, illustrating the difficulty in compounding returns while the company simultaneously absorbs the costs of its multi-year strategic platform migration.
The inconsistency in ROIC suggests that the company is struggling to optimize its invested capital as it shifts from high-margin hardware to lower-margin cloud infrastructure. Investors should monitor whether the recent stabilization in equity can translate into a more predictable and positive return on capital as the cloud business scales.
As reported in financial statements, the cash conversion cycle has remained erratic, ranging from 8 to 22 days over the last ten quarters, which suggests that Teradata faces ongoing challenges in aligning its customer billing cycles with the costs of its cloud-based service delivery.
The DSO hovering around 60 days indicates that the company is not yet capturing the efficiency gains typically associated with a pure-play SaaS model. This suggests that the legacy consulting and professional services components continue to exert a drag on the overall speed of cash collection.
According to recent SEC filings, Teradata has successfully reduced its debt-to-equity ratio from a peak of 11.65 in 2024Q1 to 0.99 in 2026Q1, reflecting a disciplined approach to capital structure management during a period of significant operational volatility and strategic realignment.
The substantial reduction in leverage appears to have mitigated the immediate risk of debt service pressure, providing the firm with a more stable foundation to navigate the current transition. However, the lack of consistent interest coverage data in recent quarters suggests that the company's ability to service debt remains sensitive to operating income swings.
The P/E ratio is frequently misapplied to Teradata's business model because it fails to account for the non-cash accounting distortions caused by the transition from perpetual license revenue to ratable cloud subscriptions, which artificially depresses earnings during the early stages of the pivot.
Analysts should instead prioritize EV/Revenue or EV/EBITDA, adjusted for the transition trough, to better capture the underlying cash-generating potential of the recurring revenue base. Relying on P/E alone obscures the true operational health of the firm by conflating structural revenue recognition changes with actual business performance.
Includes 30+ ratios · 21 years · Updated daily
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Quick answers to the most common questions about buying TDC stock.
Teradata Corporation's current P/E ratio is 25.5x. The historical average is 39.5x. This places it at the 63th percentile of its historical range.
Teradata Corporation's current EV/EBITDA is 11.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.4x.
Teradata Corporation's return on equity (ROE) is 71.6%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 26.7%.
Based on historical data, Teradata Corporation is trading at a P/E of 25.5x. This is at the 63th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Teradata Corporation has 59.7% gross margin and 12.3% operating margin. Operating margin between 10-20% is typical for established companies.
Teradata Corporation's Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.