TER trades against a final fair-value range of $141.55-$251.10, with the midpoint set by the accepted valuation synthesis rather than earlier draft model outputs. Fair value range: low $142, high $251, with mid-point at $194.
Stock analysis
Teradyne Inc.TER Teradyne Inc. fair value $194–$251
Currently screens above fair value, so patience matters more than entry speed.
Fair value
$194
Margin of safety
-85.0%
Confidence
76/100
Moat
6.5/10
Educational analysis only — not financial advice. Always do your own due diligence.
$359.77Price
FV $194.42
High $251.1
TER trades against a final fair-value range of $141.55-$251.10, with the midpoint set by the accepted valuation synthesis rather than earlier draft model outputs.
Intangible assets in highly complex
Intangible assets in highly complex SoC ATE testing.
High switching costs for fabless
High switching costs for fabless and IDMs locked into FLEX platforms.
Cycle upside
AI silicon complexity and advanced packaging density dramatically increase structural test intensity and duration.
Based on our latest analysis, TER looks meaningfully overvalued. The current price is $360 versus a composite fair-value midpoint of $194 (range $142–$251), which implies roughly 46.0% downside to the midpoint.
Our composite fair-value range for TER is $142–$251, with a midpoint of $194. The range is triangulated across multiple valuation models (discounted earnings, forward earnings scenarios, peer multiples, and where applicable owner earnings or reverse DCF) and weighted by reliability for Teradyne Inc.'s archetype.
Our current rating for TER is Sell with a confidence score of 76/100. TER is rated Sell at $359.77 versus the reconciled fair value midpoint of $194.42, implying -45.96% upside/downside. Confidence is separately disclosed at 76/100. This is research for educational purposes, not personalized investment advice.
The top risks our latest report flags for Teradyne Inc. are: Robotics Stagnation; Mobile End-Market Collapse; Valuation Reality Check. The single biggest risk is Robotics Stagnation: Industrial macro slowdown and rising competition severely compress UR and MiR growth, eliminating the premium multiple.
Our current rating for TER is Sell, issued with a confidence score of 76/100 and a moat score of 6.5/10. The rating reflects the composite fair-value range ($142–$251) versus the current price of $360.
Teradyne Inc. is classified as a mature compounder stock. Archetype determines how every downstream parameter — discount rate, terminal growth, deceleration curve, terminal multiple, scenario probability weights, scorecard weights, and which valuation models are prioritized — is calibrated for TER.
