Teradyne EBITDA vs. Current Valuation
| TER Stock | USD 108.09 0.97 0.89% |
EBITDA | First Reported 2010-12-31 | Previous Quarter 611.8 M | Current Value 349.6 M | Quarterly Volatility 324.6 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.38 | 0.5742 |
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For Teradyne profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Teradyne to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Teradyne utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Teradyne's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Teradyne over time as well as its relative position and ranking within its peers.
Teradyne |
Teradyne's Revenue Breakdown by Earning Segment
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Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Teradyne. If investors know Teradyne will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Teradyne listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.141 | Dividend Share 0.47 | Earnings Share 3.13 | Revenue Per Share 17.474 | Quarterly Revenue Growth 0.048 |
The market value of Teradyne is measured differently than its book value, which is the value of Teradyne that is recorded on the company's balance sheet. Investors also form their own opinion of Teradyne's value that differs from its market value or its book value, called intrinsic value, which is Teradyne's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Teradyne's market value can be influenced by many factors that don't directly affect Teradyne's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Teradyne's value and its price as these two are different measures arrived at by different means. Investors typically determine if Teradyne is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Teradyne's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Teradyne Current Valuation vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Teradyne's current stock value. Our valuation model uses many indicators to compare Teradyne value to that of its competitors to determine the firm's financial worth. Teradyne is rated below average in ebitda category among its peers. It also is rated below average in current valuation category among its peers reporting about 28.00 of Current Valuation per EBITDA. At this time, Teradyne's EBITDA is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Teradyne by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Teradyne Current Valuation vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Teradyne |
| = | 611.77 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Teradyne |
| = | 17.13 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Teradyne Current Valuation vs Competition
Teradyne is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Information Technology industry is at this time estimated at about 628.23 Billion. Teradyne holds roughly 17.13 Billion in current valuation claiming about 2.73% of equities under Information Technology industry.
Teradyne Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Teradyne, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Teradyne will eventually generate negative long term returns. The profitability progress is the general direction of Teradyne's change in net profit over the period of time. It can combine multiple indicators of Teradyne, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -27 M | -28.3 M | |
| Operating Income | 501.1 M | 526.1 M | |
| Income Before Tax | 525.6 M | 551.9 M | |
| Total Other Income Expense Net | 24.5 M | 25.7 M | |
| Net Income | 448.8 M | 471.2 M | |
| Income Tax Expense | 65.6 M | 42.6 M | |
| Net Income Applicable To Common Shares | 355.8 M | 390.5 M | |
| Net Income From Continuing Ops | 355.8 M | 424.8 M | |
| Non Operating Income Net Other | 14 M | 14.7 M | |
| Interest Income | 4.7 M | 9.1 M | |
| Net Interest Income | 2.9 M | 3.1 M | |
| Change To Netincome | 57.4 M | 70.6 M | |
| Net Income Per Share | 2.91 | 3.05 | |
| Income Quality | 1.30 | 1.16 | |
| Net Income Per E B T | 0.85 | 0.61 |
Teradyne Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Teradyne. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Teradyne position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Teradyne's important profitability drivers and their relationship over time.
Use Teradyne in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Teradyne position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Teradyne will appreciate offsetting losses from the drop in the long position's value.Teradyne Pair Trading
Teradyne Pair Trading Analysis
The ability to find closely correlated positions to Teradyne could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Teradyne when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Teradyne - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Teradyne to buy it.
The correlation of Teradyne is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Teradyne moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Teradyne moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Teradyne can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Teradyne position
In addition to having Teradyne in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Tools for Teradyne Stock Analysis
When running Teradyne's price analysis, check to measure Teradyne's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Teradyne is operating at the current time. Most of Teradyne's value examination focuses on studying past and present price action to predict the probability of Teradyne's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Teradyne's price. Additionally, you may evaluate how the addition of Teradyne to your portfolios can decrease your overall portfolio volatility.