Latest Ratios: P/E Ratio 114.6x · EV/EBITDA 76.2x · 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 | $62.4B | $30.5B | $20.6B | $17.8B | $14.8B | $30.0B | $21.9B | $12.2B | $6.0B | $8.4B | $5.1B |
| Enterprise Value | $62.5B | $30.6B | $20.1B | $17.2B | $14.2B | $29.1B | $21.5B | $12.0B | $5.5B | $8.4B | $5.2B |
| P/E Ratio → | 114.57 | 55.62 | 37.93 | 39.75 | 20.70 | 29.57 | 28.01 | 26.23 | 13.35 | 32.71 | — |
| P/S Ratio | 19.56 | 9.57 | 7.29 | 6.66 | 4.70 | 8.11 | 7.03 | 5.33 | 2.88 | 3.95 | 2.93 |
| P/B Ratio | 22.48 | 10.91 | 7.29 | 7.06 | 6.05 | 11.71 | 9.93 | 8.27 | 3.97 | 4.32 | 2.81 |
| P/FCF | 138.57 | 67.75 | 43.38 | 41.90 | 35.75 | 31.09 | 32.09 | 27.55 | 16.67 | 16.20 | 14.27 |
| P/OCF | 92.54 | 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 | 76.17 | 37.27 | 28.23 | 28.14 | 15.03 | 21.98 | 20.42 | 17.75 | 9.36 | 13.23 | 91.00 |
| EV / EBIT | 90.08 | 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 | 0.9% | 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 | 1.1% | 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 |
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 114.6x. The historical average is 30.1x. This places it at the 100th percentile of its historical range.
Teradyne, Inc.'s current EV/EBITDA is 76.2x. 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 114.6x. 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 0.12% 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.
Key Metrics
Top Statement Risk
China export controls
Metrics are mathematically derived from official filings.
AI Mix Drives Margin Expansion
Teradyne's gross margin expanded to 59.8% in 2026Q2, up from 57.2% a year earlier, as reported in financial statements, reflecting premium AI test pricing and operating leverage that lifted net margin to 28.2%.
The sequential improvement in gross margin from 57.5% in 2025Q4 to 59.8% in 2026Q2 suggests that AI-related testers command higher pricing, consistent with the revenue surge. Operating margin jumped to 32.9% from 28.6% in the prior quarter, indicating that fixed costs are being absorbed by higher volumes, a classic cyclical upswing. However, the sustainability of these margins depends on the durability of AI demand, as any digestion period could compress margins through under-absorption.
ROIC Inflects on AI Cycle
ROIC surged to 10.6% in 2026Q2 from 4.0% in 2025Q3, as per quarterly data, marking a sharp recovery from cyclical troughs and approaching the mid-teens levels seen in prior peaks.
The ROIC recovery is driven primarily by margin expansion rather than asset turnover, which remains low at 0.28x. This indicates that Teradyne's capital efficiency is highly sensitive to the operating cycle, with returns amplifying when volumes rise. The recent acquisition-driven goodwill increase may dilute ROIC if the robotics segment fails to generate comparable returns, warranting monitoring of segment-level capital allocation.
Working Capital Cycle Compresses
Cash conversion cycle improved to 79 days in 2026Q2 from 238 days in 2025Q2, as reported in financial statements, driven by a sharp reduction in days inventory outstanding from 234 to 65 days.
The dramatic DIO decline suggests that Teradyne is shipping products faster, likely due to strong demand for AI testers, while DSO rose to 76 days from 62 days, indicating customers may be taking longer to pay. The improvement in CCC is a positive sign of operational efficiency, but the increase in DSO could signal a shift in customer mix or payment terms, which investors should monitor for potential cash flow timing issues.
Minimal Debt, Ample Flexibility
Debt-to-equity stands at 0.03 in 2026Q2, down from 0.12 in 2025Q4, as per SEC filings, with interest coverage above 149x, indicating a fortress balance sheet with negligible refinancing risk.
The low leverage provides Teradyne with significant strategic flexibility to pursue acquisitions or weather cyclical downturns without financial distress. The slight increase in D/EBITDA to 0.21 from 0.17 in the prior quarter is immaterial given the cash generation. This conservative capital structure is a key differentiator versus peers like AMAT and KLAC, which carry higher debt loads, and supports the company's ability to invest through cycles.
Liquidity Buffer Remains Solid
Current ratio of 2.12 in 2026Q2, as per financial statements, remains above the 2.0 threshold, though down from 2.91 in 2024Q4, reflecting deployment of cash into acquisitions and working capital.
The quick ratio of 1.76 indicates that inventory is not a significant liquidity concern, as the company can cover short-term obligations without relying on inventory sales. The decline in the current ratio from 3.73 in 2024Q1 to 2.12 suggests a more efficient use of cash, but the absolute level remains healthy. Under a severe demand shock, the fortress balance sheet and minimal debt would allow Teradyne to sustain operations without external financing.
P/E Misleads on Cyclicality
The trailing P/E of 111.9x, as per current valuation data, overstates expensiveness because it is based on trough earnings; forward P/E of 42.3x better reflects normalized earnings power.
Teradyne's earnings are highly cyclical, so trailing P/E is distorted by the recent trough in 2025. The forward P/E of 42.3x still implies a premium to peers like AMAT (61.7x trailing) and KLAC (52.7x), but this may be justified by the AI-driven growth inflection. Investors should use EV/EBITDA or P/E on normalized mid-cycle earnings to assess valuation, as the current trailing multiple is not representative of the company's earning power.