Teradyne, Inc. (TER) Financial Ratios
30 years of historical data (1996–2025) · Technology · Semiconductors
EV/EBITDA
↑
87.31
↑+234% vs avg
5yr avg: 26.13
30Y Low5.8·High91.0
P/FCF
↑
158.85
↑+261% vs avg
5yr avg: 43.97
30Y Low6.5·High67.7
P/B Ratio
↓
25.77
↑+199% vs avg
5yr avg: 8.61
30Y Low1.0·High11.7
ROE
↓
19.7%
↑-24% vs avg
5yr avg: 25.8%
30Y Low-51%·High43%
Debt/EBITDA
↑
0.42
↑+70% vs avg
5yr avg: 0.25
30Y Low0.0·High49.0
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
TER Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Teradyne, Inc. trades at 131.3x earnings, 258% above its 5-year average of 36.7x, sitting at the 100th percentile of its historical range. Compared to the Technology sector median P/E of 28.3x, the stock trades at a premium of 364%. On a free-cash-flow basis, the stock trades at 158.9x P/FCF, 261% above the 5-year average of 44.0x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $71.5B | $30.5B | $20.6B | $17.8B | $14.8B | $30.0B | $21.9B | $12.2B | $6.0B | $8.4B | $5.1B |
| Enterprise Value | $71.6B | $30.6B | $20.1B | $17.2B | $14.2B | $29.1B | $21.5B | $12.0B | $5.5B | $8.4B | $5.2B |
| P/E Ratio → | 131.32 | 55.62 | 37.93 | 39.75 | 20.70 | 29.57 | 28.01 | 26.23 | 13.35 | 32.71 | — |
| P/S Ratio | 22.43 | 9.57 | 7.29 | 6.66 | 4.70 | 8.11 | 7.03 | 5.33 | 2.88 | 3.95 | 2.93 |
| P/B Ratio | 25.77 | 10.91 | 7.29 | 7.06 | 6.05 | 11.71 | 9.93 | 8.27 | 3.97 | 4.32 | 2.81 |
| P/FCF | 158.85 | 67.75 | 43.38 | 41.90 | 35.75 | 31.09 | 32.09 | 27.55 | 16.67 | 16.20 | 14.27 |
| P/OCF | 106.09 | 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
TER EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Teradyne, Inc.'s enterprise value stands at 87.3x EBITDA, 234% above its 5-year average of 26.1x. The Technology sector median is 16.6x, placing the stock at a 424% premium on an enterprise-value basis.
| 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 | 87.31 | 37.27 | 28.23 | 28.14 | 15.03 | 21.98 | 20.42 | 17.75 | 9.36 | 13.23 | 91.00 |
| EV / EBIT | 103.26 | 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 |
TER Profitability
Margins and return-on-capital ratios measuring operating efficiency
Teradyne, Inc. earns an operating margin of 21.7%. Operating margins have expanded from 18.7% to 21.7% over the past 3 years, signaling improving operational efficiency. ROE of 19.7% indicates solid capital efficiency. ROIC of 19.8% represents solid returns on invested capital.
Margins
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% |
Return on Capital
| 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% |
TER Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Teradyne, Inc. carries a Debt/EBITDA ratio of 0.4x, which is very conservative (86% below the sector average of 2.9x). Net debt stands at $53M ($347M total debt minus $294M cash). Interest coverage of 80.0x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| 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 |
TER Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.76x means Teradyne, Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 1.41x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has declined from 3.28x to 1.76x over the past 3 years.
| 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 |
TER Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Teradyne, Inc. returns 1.1% to shareholders annually — split between a 0.1% dividend yield and 1.0% buyback yield. The payout ratio of 13.8% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 0.8% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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% | — |
Total Shareholder Return Metrics
| 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 | 0.6% | 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 | 1.1% | 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 |
Peer Comparison
Compare TER with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 TERYou | $72B | 131.3 | 87.3 | 158.9 | 58.6% | 21.7% | 19.7% | 19.8% | 0.4 |
 AMAT | $508B | 73.9 | 60.5 | 89.2 | 48.7% | 29.2% | 35.5% | 32.9% | 0.8 |
 KLAC | $35B | 8.9 | 7.0 | 9.5 | 62.3% | 43.1% | 100.8% | 46.5% | 1.1 |
 COHU | $3B | -44.1 | — | 306.7 | 34.5% | -13.3% | -9.0% | -5.7% | — |
 ACLS | $6B | 48.4 | 40.5 | 52.8 | 44.9% | 14.2% | 11.7% | 9.6% | 0.3 |
 ONTO | $17B | 125.1 | 87.8 | 57.7 | 49.7% | 13.2% | 6.8% | 5.7% | 0.1 |
 FORM | $12B | 227.0 | 109.3 | 1040.2 | 39.1% | 8.2% | 5.5% | 5.4% | 0.4 |
 ICHR | $3B | -64.7 | — | — | 9.3% | -4.1% | -7.7% | -3.9% | — |
 MKSI | $28B | 96.2 | 35.6 | 57.0 | 40.4% | 14.4% | 11.7% | 6.5% | 5.2 |
 NOVT | $6B | 105.9 | 30.8 | 114.5 | 41.6% | 11.9% | 5.2% | 7.4% | 1.9 |
 CAMT | $9B | 188.2 | 72.6 | 70.4 | 50.5% | 25.8% | 8.7% | 12.1% | 4.1 |
| Technology Median | — | 28.3 | 16.6 | 18.8 | 48.8% | 0.2% | 1.6% | 2.7% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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TER — Frequently Asked Questions
Quick answers to the most common questions about buying TER stock.
What is Teradyne, Inc.'s P/E ratio?
Teradyne, Inc.'s current P/E ratio is 131.3x. The historical average is 30.1x. This places it at the 100th percentile of its historical range.
What is Teradyne, Inc.'s EV/EBITDA?
Teradyne, Inc.'s current EV/EBITDA is 87.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 20.9x.
What is Teradyne, Inc.'s ROE?
Teradyne, Inc.'s return on equity (ROE) is 19.7%. The historical average is 10.7%.
Is TER stock overvalued?
Based on historical data, Teradyne, Inc. is trading at a P/E of 131.3x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Teradyne, Inc.'s dividend yield?
Teradyne, Inc.'s current dividend yield is 0.11% with a payout ratio of 13.8%.
What are Teradyne, Inc.'s profit margins?
Teradyne, Inc. has 58.6% gross margin and 21.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Teradyne, Inc. have?
Teradyne, Inc.'s Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.