Should I Buy TER Stock in 2026?

Data-driven analysis and honest assessment for Teradyne Inc

Analysis Updated:
CAUTIONSeveral concerns warrant careful consideration

Current Price: $320.03P/E: 92.5

Decision Score

4.1/10

Weak

Based on 6 fundamental factors

Score Breakdown:

Valuation (20%)2/10

Very high P/E of 92.5 suggests overvaluation

Growth (20%)5/10

Slow growth of 1%

Profitability (20%)4/10

Thin margins (0% net)

Financial Health (15%)5/10

Financial health data limited

Cash Flow (15%)4/10

Low FCF yield of 1.1%

Insider Activity (10%)5/10

No recent insider activity

Key Investment Metrics

Current Price

$320.03

P/E Ratio

92.49

Revenue Growth

0.4%

Profit Margin

0.2%

Market Cap

$50.1B

Dividend Yield

0.00%

How TER Compares to Competitors

Understanding how TER stacks up against peers helps inform your investment decision.

How TER Compares to Peers

Upcoming Events for TER

+5 Reasons TO Buy TER

1. High gross margins of 58%

moderate

Gross margins above 50% typically indicate strong brand value or intellectual property moats.

-5 Reasons NOT to Buy TER

1. Expensive valuation at 92x earnings

high risk

P/E of 92 is significantly above averages. High expectations leave little room for disappointment.

2. Thin profit margins of 0.2%

high risk

Low margins provide little cushion against cost increases or pricing pressure.

3. Minimal revenue growth

low risk

Growth of 0.4% barely keeps pace with inflation.

4. Low free cash flow yield of 1.1%

low risk

Limited cash generation means most value comes from future growth expectations.

Who Should Buy TER?

Investment Profile

Risk Level

High

Recommended Holding Period

3-5 years

Best For:

  • Momentum Traders

    High-growth profile attracts momentum

Not Suitable For:

  • Growth Investors

    Limited 0% growth may disappoint

  • Value Investors

    Premium P/E of 92 doesn't fit value criteria

  • Income-Focused Retirees

    Low 0.0% yield

  • Risk-Averse Investors

    High risk may cause uncomfortable volatility

Consider These Alternatives

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Pro tip: Compare TER directly with competitors using our comparison tool to see which stock better fits your criteria.

Get the Full Picture

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Frequently Asked Questions

What is TER stock price today?

TER (Teradyne Inc) stock is trading at $320.03 as of the latest market data. Stock prices update in real-time during market hours (9:30 AM - 4:00 PM ET).

Is TER stock going up or down today?

TER stock price movements are influenced by market conditions, news, earnings reports, and investor sentiment. Check our live dashboard for real-time price changes and technical indicators.

Should I buy TER stock now?

The decision to buy TER depends on your investment strategy, risk tolerance, and financial goals. Our AI analysis evaluates fundamentals, valuation metrics, growth prospects, and market conditions to help inform your decision.

Is TER a buy, hold, or sell right now?

Our AI-powered analysis provides buy/hold/sell recommendations for TER based on multiple factors including valuation, growth metrics, technical indicators, and analyst consensus. Visit our dashboard for the latest recommendation.

Is TER stock overvalued or undervalued?

TER currently trades at a P/E ratio of 92.49, which may indicate premium valuation. Our DCF calculator provides intrinsic value estimates to help determine if TER is fairly priced.

What is TER's P/E ratio?

TER has a price-to-earnings (P/E) ratio of 92.49, which measures how much investors are willing to pay per dollar of earnings. Compare this to industry peers and historical averages for context.

What is TER's market cap?

TER (Teradyne Inc) has a market capitalization of $50.10 billion, making it a mid-cap stock.

What is TER's price to book ratio?

TER trades at a price-to-book (P/B) ratio of 18.64, which compares the stock price to the company's book value per share. A P/B below 1.0 may indicate undervaluation, while above 3.0 may suggest premium pricing.

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Disclaimer

This analysis is for informational purposes only and should not be considered financial advice. The decision score and recommendations are based on quantitative factors and do not account for all risks, your personal financial situation, or qualitative factors. Always do your own research and consider consulting with a financial advisor before making investment decisions.