Stock fact sheet · data as of
Teradyne, Inc. (TER): fair value, margin of safety and Wheel Score
Technology · Semiconductors · United States · Blend
Is TER undervalued?
TER closed at 359.44 on 16 Oct 2026, more than 30% above the GLS average fair value of 121.24. Only 1 of the 9 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the Sunday Scan drops names like this at the "below fair value" rule.
There is a wide gap between DDM (7.50) and Graham Growth (420.56). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files TER under Blend.
Nine valuation models for TER
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 44.60 | -88% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 60.29 | -83% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 420.56 | +17% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 183.81 | -49% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 46.29 | -87% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 135.78 | -62% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 110.62 | -69% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 7.50 | -98% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 81.69 | -77% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 3.59 | -99% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 461.50 | +28% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Teradyne, Inc. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. On durability TER scores 5.8/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are high - ROIC 17.6%, ROE 19.8%, ROA 13.3% - with debt at 0.12 times equity and a free-cash-flow yield of 1.4%.
The dividend yield is 0.14% with a payout ratio of 7% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Product 90%, Service 10% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 10/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 17.6% |
|---|---|---|---|
| GLS Moat | 5.8 / 10 | ROE | 19.8% |
| Debt / equity | 0.12 | ROA | 13.3% |
| Free-cash-flow yield | 1.4% | Payout ratio | 7% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 10 / 10 |
Wheel Score 58: Fair
A Wheel Score of 58 puts Teradyne, Inc. in the Fair band - below the 70 the Sunday Scan requires. Value 0/25, Health 16/20, Moat 9/15, Premium 15/20 and Stability 18/20; the weakest part is Value (0/25).
Implied volatility is 79% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (15 of 20) because volatility this high usually comes with a reason. The option chain is deep: 54,759 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 3.8M shares a day on a market cap of $56.2B, with a beta of 1.75 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 18 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -196% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 9 / 15 | moat 5.8/10 | |
| Premium | 15 / 20 | implied volatility 79% | |
| Stability | 18 / 20 | 3.8M shares/day, $56.2B cap, beta 1.75 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Teradyne, Inc. reports earnings on 27 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Semiconductors
The 12 companies below are the closest to Teradyne, Inc. by market cap within the Semiconductors industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| NXPI NXP Semiconductors N.V. | 231.09 | 146.50 | -58% | 62Fair | $58.3B |
| UMC United Microelectronics Corporation | 21.40 | 108.87 | +80% | 84Prime | $53.4B |
| ALAB Astera Labs, Inc. Common Stock | 301.98 | 64.71 | -367% | 46Weak | $52.4B |
| TEL TE Connectivity plc | 210.33 | 177.44 | -19% | 71Good | $61.0B |
| MPWR Monolithic Power Systems, Inc. | 1,249.20 | 395.03 | -216% | 61Fair | $61.4B |
| STM STMicroelectronics N.V. | 46.90 | 13.03 | -260% | 58Fair | $41.9B |
| MCHP Microchip Technology Incorporated | 74.26 | 22.65 | -228% | 55Fair | $40.3B |
| ASX ASE Technology Holding Co., Ltd. | 41.89 | 91.23 | +54% | 85Prime | $92.1B |
| CRDO Credo Technology Group Holding Ltd | 178.50 | 83.67 | -113% | 45Weak | $33.5B |
| CBRS Cerebras Systems Inc. | 142.17 | - | - | 45Weak | $32.2B |
| ON ON Semiconductor Corporation | 73.70 | 45.63 | -62% | 56Fair | $28.7B |
| GFS GLOBALFOUNDRIES Inc. | 48.76 | 26.92 | -81% | 59Fair | $26.8B |
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about TER
Is TER undervalued right now?
No: at 359.44 the stock trades 196% above the GLS average fair value of 121.24 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of TER and what does it mean?
TER scores 58 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for TER?
121.24 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Teradyne, Inc. report earnings next?
The next earnings report is due on 27 Oct 2026 (after the close), 11 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does TER have listed options, and how liquid are they?
Yes. The nightly snapshot found 1,000 listed contracts with 54,759 open interest across all expiries and implied volatility of 79% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.