Teradyne Inc. is a leading supplier of automation solutions for test and industrial applications. Teradyne Automatic Test Equipment is used to test semiconductors, wireless products, data storage and complex electronic systems, which serve consumer, communications, industrial and government customers. The company was founded in 1960 and is based in North Reading, Massachusetts.
TER Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for TER, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Teradyne Inc ranked in the 23th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Teradyne Inc, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 35.77; that's higher than 85.32% of US stocks in the Technology sector that have positive free cash flow.
The business' balance sheet reveals debt to be 2% of the company's capital (with equity being the remaining amount). Approximately just 9.49% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
TER's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 49.75% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Teradyne Inc? See ATVI, CNDT, IEHC, IIJIY, and LFUS.
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Teradyne (TER) is a leading supplier of semiconductor test equipment and industrial applications like automation and robotics. They offer a full suite of products focused on areas of technological innovation and retain revenue from both products and services segments. These revenue streams are exposed to secularly growing industries with strong...
Today we will take a look at the metrics that make Teradyne (TER) a great member for Dividends 500, look at the company's multiple growth avenues, and conclude with a quick SWOT analysis and an overall investment thesis for the business. High Growth in Dividends 500 This will probably not...
Smart Dividends on Seeking Alpha | January 12, 2021