Latest Ratios: P/E Ratio 25.0x · EV/EBITDA 19.6x · 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 | $34.2B | $30.5B | $20.6B | $17.8B | $14.8B | $30.0B | $21.9B | $12.2B | $6.0B | $8.4B | $5.1B |
| Enterprise Value | $34.2B | $30.6B | $20.1B | $17.2B | $14.2B | $29.1B | $21.5B | $12.0B | $5.5B | $8.4B | $5.2B |
| P/E Ratio → | 25.03 | 55.62 | 37.93 | 39.75 | 20.70 | 29.57 | 28.01 | 26.23 | 13.35 | 32.71 | — |
| P/S Ratio | 6.83 | 9.57 | 7.29 | 6.66 | 4.70 | 8.11 | 7.03 | 5.33 | 2.88 | 3.95 | 2.93 |
| P/B Ratio | 12.31 | 10.91 | 7.29 | 7.06 | 6.05 | 11.71 | 9.93 | 8.27 | 3.97 | 4.32 | 2.81 |
| P/FCF | 33.33 | 67.75 | 43.38 | 41.90 | 35.75 | 31.09 | 32.09 | 27.55 | 16.67 | 16.20 | 14.27 |
| P/OCF | 50.65 | 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 | 19.61 | 39.29 | 28.23 | 28.14 | 15.03 | 21.98 | 20.42 | 17.75 | 9.36 | 13.23 | 91.00 |
| EV / EBIT | 52.63 | 44.69 | 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 | 58.2% | 58.2% | 58.5% | 57.4% | 59.2% | 59.6% | 57.2% | 58.4% | 58.1% | 57.2% | 54.7% |
| Operating Margin | 20.4% | 20.4% | 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 | 18.6% | 18.6% | 20.6% | 20.3% | 35.9% | 51.5% | 46.1% | 38.0% | 24.8% | 20.9% | -2.6% |
| ROCE | 21.1% | 21.1% | 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 | 0.45 | 0.45 | 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 | 99.92 | 99.92 | 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 | 3.51 | 3.51 | 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 | 0.2% | 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 | 4.0% | 1.8% | 2.6% | 2.5% | 4.8% | 3.4% | 3.6% | 3.8% | 7.5% | 3.1% | — |
| FCF Yield | 3.0% | 1.5% | 2.3% | 2.4% | 2.8% | 3.2% | 3.1% | 3.6% | 6.0% | 6.2% | 7.0% |
| Buyback Yield | 2.1% | 2.3% | 1.0% | 2.2% | 5.1% | 2.0% | 0.4% | 4.1% | 13.6% | 2.4% | 2.8% |
| Total Shareholder Yield | 2.3% | 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 |
Includes 30+ ratios · 30 years · Updated daily
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10-year return with dividends reinvested.
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Quick answers to the most common questions about buying TER stock.
Teradyne, Inc.'s current P/E ratio is 25.0x. The historical average is 30.1x. This places it at the 46th percentile of its historical range.
Teradyne, Inc.'s current EV/EBITDA is 19.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 21.0x.
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 25.0x. This is at the 46th 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 0.22% with a payout ratio of 13.8%.
Teradyne, Inc. has 58.2% gross margin and 20.4% 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.
Key Metrics
Top Statement Risk
Peak cycle revenue plateau
Metrics are mathematically derived from official filings.
Premium Multiples Price in Sustained AI Demand
Based on reported figures, Teradyne trades at a trailing P/E of 61.13 against a forward P/E of 22.41, a gap implying the market expects earnings to compound well above current run-rate levels over the coming year.
The forward multiple sits well below the trailing figure, which suggests investors are capitalizing a meaningful earnings step-up rather than the recent trough-to-peak quarters alone. Relative to peers, the forward P/E compares favorably with Applied Materials at 36.86 trailing and KLA at 35.46, though Teradyne's EV/EBITDA of 40.67 trailing and 17.80 forward remains elevated against its own near-term cash generation. Investors should monitor whether guidance of $1.85 to $2.15 EPS can sustain the earnings base implied by the forward multiple.
Operating Margin Expansion Outpacing Gross Margin
As reported in financial statements, operating margin climbed from 13.9% in 2025Q2 to 36.9% in 2026Q1 while gross margin stayed within a narrow 57% to 61% band, indicating the gains came from operating leverage rather than pricing alone.
Gross margin stability near 59% to 60% suggests pricing and product mix have held firm, while the sharp operating margin move indicates fixed R&D and SG&A were absorbed across a rapidly expanding revenue base. The subsequent compression to 30.8% in 2026Q3 may signal that the operating leverage benefit is reversing as revenue plateaus. Net margin of 26.2% in the latest quarter remains competitive within the peer set, though its sustainability depends on revenue holding near current levels.
ROIC Recovery Driven by Margin, Not Turnover
Based on reported figures, ROIC rose from 2.7% in 2025Q2 to a peak of 12.2% in 2026Q1 before easing to 9.1%, a recovery that appears driven primarily by margin expansion since asset turnover has remained largely flat.
The return profile is recovering from a very low base, yet ROIC of roughly 9% to 12% still trails KLA's 44.0% and Applied Materials' 32.9% in the peer set, suggesting the company's large capital base and acquisition-related goodwill dilute returns. Asset turnover near 0.25 to 0.30 quarterly indicates capital is not being recycled quickly, which may warrant closer monitoring of returns on the Industrial Automation investments. The ROE trajectory of 9.5% in 2026Q3 mirrors the ROIC pattern and reinforces that improvement is margin-led.
Negligible Leverage Limits Refinancing Exposure
According to recent SEC filings, Teradyne's debt-to-equity ratio sits at 0.04 with debt-to-EBITDA near 0.31, and interest coverage data is largely unavailable in the most recent quarter, limiting precise assessment of debt service comfort.
Leverage is minimal on every reported measure, and the decline in debt-to-equity from 0.12 in 2025 to 0.04 suggests debt has been retired or equity has expanded faster than borrowings. Because interest coverage is unavailable for 2026Q3 and sparsely reported earlier, conclusions about debt service should be treated as directional rather than fully verified. The structural risk appears low, though investors should monitor whether balance sheet flexibility is used for acquisitions that could reintroduce leverage.
Lagging Peers on Return Metrics Despite Scale
Based on reported figures, Teradyne's ROE of 9.5% and ROIC of 9.1% in 2026Q3 trail KLA at 87.0% and 44.0% and Applied Materials at 40.4% and 32.9%, though they exceed Axcelis and Onto Innovation in the peer set.
The gap versus KLA and Applied Materials appears structural, reflecting the broader capital base and acquisition-related goodwill Teradyne carries relative to those peers' more concentrated equipment franchises. Net margin of 26.2% is competitive with the group, which suggests the shortfall lies in capital efficiency rather than profitability. Whether this gap narrows likely depends on continued margin strength and disciplined redeployment of the cash balance into higher-return assets.
Peak-Cycle Margins May Not Persist
Based on reported figures, the decline in operating margin from 36.9% to 30.8% and the flat trajectory of revenue near $1.3B may indicate that current profitability reflects a cyclical peak rather than a durable earnings base.
The most commonly misapplied ratio for a semiconductor test business is trailing P/E, since peak-cycle earnings inflate the denominator and make a 61.13 multiple appear more expensive than the normalized earnings power may warrant, or conversely hide the risk of a sharp earnings reset. Forward multiples and normalized through-cycle margins better capture the economics, though investors should recognize that the forward estimates depend on guidance that management has kept conservative. Monitoring utilization at major outsourced test providers and tester order trends would offer earlier signals of whether the current margin structure is sustainable.