Latest Ratios: P/E Ratio 122.8x · EV/EBITDA 81.6x · ROE 19.7%. (1996–2025 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 | $66.9B | $30.5B | $20.6B | $17.8B | $14.8B | $30.0B | $21.9B | $12.2B | $6.0B | $8.4B | $5.1B |
| Enterprise Value | $67.0B | $30.6B | $20.1B | $17.2B | $14.2B | $29.1B | $21.5B | $12.0B | $5.5B | $8.4B | $5.2B |
| P/E Ratio → | 122.80 | 55.62 | 37.93 | 39.75 | 20.70 | 29.57 | 28.01 | 26.23 | 13.35 | 32.71 | — |
| P/S Ratio | 20.97 | 9.57 | 7.29 | 6.66 | 4.70 | 8.11 | 7.03 | 5.33 | 2.88 | 3.95 | 2.93 |
| P/B Ratio | 24.10 | 10.91 | 7.29 | 7.06 | 6.05 | 11.71 | 9.93 | 8.27 | 3.97 | 4.32 | 2.81 |
| P/FCF | 148.54 | 67.75 | 43.38 | 41.90 | 35.75 | 31.09 | 32.09 | 27.55 | 16.67 | 16.20 | 14.27 |
| P/OCF | 99.20 | 45.25 | 30.59 | 30.47 | 25.65 | 27.34 | 25.25 | 21.14 | 12.67 | 13.48 | 11.54 |
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 | — | 9.58 | 7.14 | 6.43 | 4.49 | 7.87 | 6.90 | 5.22 | 2.62 | 3.92 | 2.96 |
| EV / EBITDA | 81.64 | 37.27 | 28.23 | 28.14 | 15.03 | 21.98 | 20.42 | 17.75 | 9.36 | 13.23 | 91.00 |
| EV / EBIT | 96.56 | 47.66 | 32.88 | 32.53 | 16.79 | 24.73 | 23.29 | 21.84 | 11.23 | 15.34 | — |
| EV / FCF | — | 67.87 | 42.49 | 40.46 | 34.17 | 30.18 | 31.50 | 26.95 | 15.16 | 16.08 | 14.40 |
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 | 58.6% | 58.6% | 58.5% | 57.4% | 59.2% | 59.6% | 57.2% | 58.4% | 58.1% | 57.2% | 54.7% |
| Operating Margin | 21.7% | 21.7% | 21.1% | 18.7% | 26.4% | 32.4% | 29.7% | 24.1% | 22.6% | 24.6% | -3.6% |
| Net Profit Margin | 17.4% | 17.4% | 19.2% | 16.8% | 22.7% | 27.4% | 25.1% | 20.4% | 21.5% | 12.1% | -2.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 19.7% | 19.7% | 20.3% | 18.0% | 28.5% | 42.5% | 42.5% | 31.1% | 26.0% | 13.6% | -2.3% |
| ROA | 14.1% | 14.1% | 15.1% | 12.8% | 19.6% | 27.2% | 24.4% | 17.0% | 15.5% | 8.8% | -1.6% |
| ROIC | 19.8% | 19.8% | 20.6% | 20.3% | 35.9% | 51.5% | 46.1% | 38.0% | 24.8% | 20.9% | -2.6% |
| ROCE | 22.5% | 22.5% | 20.1% | 18.0% | 28.9% | 40.3% | 35.7% | 24.7% | 19.4% | 20.8% | -2.8% |
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 | 0.12 | 0.12 | 0.05 | 0.06 | 0.08 | 0.09 | 0.23 | 0.34 | 0.25 | 0.19 | 0.19 |
| Debt / EBITDA | 0.42 | 0.42 | 0.19 | 0.24 | 0.21 | 0.18 | 0.49 | 0.75 | 0.65 | 0.58 | 6.18 |
| Net Debt / Equity | — | 0.02 | -0.15 | -0.24 | -0.27 | -0.34 | -0.18 | -0.18 | -0.36 | -0.03 | 0.02 |
| Net Debt / EBITDA | 0.07 | 0.07 | -0.59 | -1.00 | -0.70 | -0.66 | -0.38 | -0.40 | -0.93 | -0.10 | 0.79 |
| Debt / FCF | — | 0.12 | -0.88 | -1.43 | -1.59 | -0.91 | -0.58 | -0.60 | -1.51 | -0.12 | 0.12 |
| Interest Coverage | 79.95 | 79.95 | 170.80 | 139.09 | 226.97 | 66.15 | 38.26 | 24.66 | 22.48 | 25.21 | -14.14 |
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 | 1.76 | 1.76 | 2.91 | 3.28 | 3.03 | 3.20 | 3.45 | 3.08 | 3.64 | 5.00 | 4.36 |
| Quick Ratio | 1.41 | 1.41 | 1.84 | 2.05 | 1.93 | 2.44 | 2.83 | 2.45 | 3.04 | 4.58 | 3.79 |
| Cash Ratio | 0.29 | 0.29 | 0.96 | 1.24 | 1.20 | 1.70 | 2.05 | 1.69 | 2.34 | 3.91 | 3.16 |
| Asset Turnover | — | 0.76 | 0.76 | 0.77 | 0.90 | 0.97 | 0.85 | 0.82 | 0.78 | 0.69 | 0.63 |
| Inventory Turnover | 3.48 | 3.48 | 1.76 | 1.40 | 1.58 | 2.46 | 3.07 | 2.81 | 3.09 | 4.82 | 3.73 |
| Days Sales Outstanding | — | 88.51 | 61.02 | 57.57 | 56.82 | 54.29 | 58.17 | 57.63 | 50.61 | 46.60 | 40.06 |
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 | 0.1% | 0.3% | 0.4% | 0.4% | 0.5% | 0.2% | 0.3% | 0.5% | 1.1% | 0.7% | 0.9% |
| Payout Ratio | 13.8% | 13.8% | 14.1% | 15.1% | 9.7% | 6.5% | 8.5% | 13.1% | 14.9% | 21.5% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.8% | 1.8% | 2.6% | 2.5% | 4.8% | 3.4% | 3.6% | 3.8% | 7.5% | 3.1% | — |
| FCF Yield | 0.7% | 1.5% | 2.3% | 2.4% | 2.8% | 3.2% | 3.1% | 3.6% | 6.0% | 6.2% | 7.0% |
| Buyback Yield | 1.0% | 2.3% | 1.0% | 2.2% | 5.1% | 2.0% | 0.4% | 4.1% | 13.6% | 2.4% | 2.8% |
| Total Shareholder Yield | 1.2% | 2.6% | 1.3% | 2.6% | 5.5% | 2.2% | 0.7% | 4.6% | 14.7% | 3.0% | 3.8% |
| Shares Outstanding | — | $158M | $163M | $164M | $170M | $184M | $183M | $179M | $193M | $202M | $203M |
Geopolitical supply chain exposure
Based on current market data, Teradyne trades at a forward P/E of 58.58, a valuation multiple that appears to price in significant long-term growth from AI-driven semiconductor testing requirements rather than historical earnings performance, as reported in recent financial disclosures and comparative peer analysis.
The elevated P/E and EV/EBITDA multiples suggest that investors are assigning a scarcity premium to Teradyne's duopoly position in the ATE market. This valuation implies that the market expects a structural step-up in test intensity per chip, which may justify the current pricing if the company successfully captures the HBM and AI accelerator testing cycle.
As indicated by the company's financial statements, ROIC has recovered to 12.2% in 2026Q1 from a low of 2.7% in 2025Q2, suggesting that the firm is successfully leveraging its high-margin test platforms to generate superior returns on invested capital during the current demand inflection.
The trend in ROIC highlights the sensitivity of Teradyne's business model to volume-driven operating leverage. While the recent improvement is encouraging, investors should monitor whether this return profile can be sustained as the company continues to integrate the lower-margin Industrial Automation segment into its broader capital allocation framework.
According to quarterly data, Teradyne's cash conversion cycle reached 76 days in 2026Q1, a significant improvement from the 289-day peak observed in 2024Q1, which suggests that management is gaining better control over inventory management amidst the current surge in high-end semiconductor test equipment demand.
The historical volatility in the CCC, driven largely by DIO fluctuations, reflects the complex, long-cycle nature of manufacturing specialized ATE hardware. The recent compression in the cycle appears to be a positive indicator of improved operational throughput, though it warrants further investigation into whether this is a structural shift or a temporary byproduct of rapid revenue growth.
The P/E ratio is frequently misapplied to Teradyne's business model because it fails to account for the extreme cyclicality of semiconductor capital equipment spending, which often renders trailing earnings an unreliable indicator of future cash-generating potential, as evidenced by the company's historical margin fluctuations.
Investors should instead focus on EV/Sales or EV/EBITDA adjusted for the semiconductor cycle, as these metrics better capture the underlying value of the company's installed base and service revenue. Relying on P/E during cyclical troughs or peaks can lead to distorted conclusions about the company's true fundamental valuation.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying TER stock.
Teradyne, Inc.'s current P/E ratio is 122.8x. The historical average is 30.1x. This places it at the 100th percentile of its historical range.
Teradyne, Inc.'s current EV/EBITDA is 81.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 20.9x.
Teradyne, Inc.'s return on equity (ROE) is 19.7%. The historical average is 10.7%.
Based on historical data, Teradyne, Inc. is trading at a P/E of 122.8x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Teradyne, Inc.'s current dividend yield is 0.11% with a payout ratio of 13.8%.
Teradyne, Inc. has 58.6% gross margin and 21.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Teradyne, Inc.'s Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.