Assessing Teradyne (TER) Valuation After Strong Recent Share Price Momentum

Teradyne (TER) has drawn attention after recent trading, with the stock last closing at $228.15. For investors, the focus is on how this price compares with the company’s fundamentals.

See our latest analysis for Teradyne.

The recent share price move to $228.15 sits within a strong run, with a 30-day share price return of 23.18% and a 1-year total shareholder return of 65.56% suggesting momentum has been building rather than fading.

If Teradyne’s jump has you thinking about where else growth stories could emerge, it might be worth scanning high growth tech and AI stocks as a starting point for further ideas.

With Teradyne now at $228.15 and recent returns running strong, the key question is whether that price still leaves room for upside or if the market is already fully pricing in future growth potential.

Most Popular Narrative: 18.6% Overvalued

Teradyne’s most followed narrative estimates fair value at US$192.38, which sits below the latest close of US$228.15, so the story leans toward a rich valuation that depends heavily on future execution.

The analysts have a consensus price target of $116.062 for Teradyne based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $133.0, and the most bearish reporting a price target of just $85.0.

Read the complete narrative.

Want to see what kind of earnings path could bridge the gap between today’s price and that fair value line, plus what margin profile it leans on? The narrative also bakes in a specific future P/E and a steady discount rate that do a lot of heavy lifting. Curious how those pieces fit together over the next few years?

Result: Fair Value of $192.38 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this story can change quickly if tariffs, trade policy, or weaker robotics demand reduce customer budgets and unsettle the earnings path analysts are assuming.

Find out about the key risks to this Teradyne narrative.

Build Your Own Teradyne Narrative

If you look at these numbers and reach a different conclusion, or simply want to put your own stamp on the story, you can build a custom view in just a few minutes with Do it your way.

A good starting point is our analysis highlighting 1 key reward investors are optimistic about regarding Teradyne.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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