Price to Book Value (P/BV)
since 2005
Calculation
Teradyne Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Shareholders’ equity1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 22, 2024 | 6.21 | = | 102.48 | ÷ | 16.50 | 16.50 | = | 2,525,897 | ÷ | 153,080,607 | |
| Feb 22, 2023 | 6.41 | = | 100.77 | ÷ | 15.71 | 15.71 | = | 2,451,294 | ÷ | 156,047,868 | |
| Feb 23, 2022 | 7.07 | = | 111.52 | ÷ | 15.78 | 15.78 | = | 2,562,444 | ÷ | 162,417,046 | |
| Feb 22, 2021 | 10.00 | = | 132.39 | ÷ | 13.24 | 13.24 | = | 2,207,018 | ÷ | 166,694,772 | |
| Mar 2, 2020 | 6.82 | = | 60.49 | ÷ | 8.87 | 8.87 | = | 1,480,158 | ÷ | 166,784,497 | |
| Mar 1, 2019 | 4.68 | = | 41.00 | ÷ | 8.77 | 8.77 | = | 1,522,354 | ÷ | 173,629,283 | |
| Mar 1, 2018 | 4.49 | = | 44.90 | ÷ | 10.00 | 10.00 | = | 1,953,646 | ÷ | 195,422,673 | |
| Mar 1, 2017 | 3.18 | = | 29.07 | ÷ | 9.13 | 9.13 | = | 1,828,659 | ÷ | 200,302,178 | |
| Feb 29, 2016 | 1.98 | = | 19.08 | ÷ | 9.62 | 9.62 | = | 1,965,786 | ÷ | 204,336,493 | |
| Feb 27, 2015 | 2.02 | = | 19.32 | ÷ | 9.55 | 9.55 | = | 2,078,980 | ÷ | 217,783,809 | |
| Feb 28, 2014 | 1.98 | = | 20.28 | ÷ | 10.23 | 10.23 | = | 1,985,094 | ÷ | 193,977,544 | |
| Mar 1, 2013 | 1.78 | = | 16.62 | ÷ | 9.34 | 9.34 | = | 1,778,355 | ÷ | 190,315,020 | |
| Feb 29, 2012 | 2.03 | = | 16.42 | ÷ | 8.07 | 8.07 | = | 1,505,060 | ÷ | 186,457,258 | |
| Mar 1, 2011 | 3.00 | = | 18.19 | ÷ | 6.05 | 6.05 | = | 1,122,188 | ÷ | 185,346,619 | |
| Mar 1, 2010 | 2.77 | = | 10.39 | ÷ | 3.75 | 3.75 | = | 664,579 | ÷ | 177,237,096 | |
| Mar 2, 2009 | 0.96 | = | 3.93 | ÷ | 4.09 | 4.09 | = | 706,112 | ÷ | 172,696,518 | |
| Feb 28, 2008 | 1.74 | = | 12.26 | ÷ | 7.05 | 7.05 | = | 1,229,174 | ÷ | 174,344,112 | |
| Mar 1, 2007 | 2.23 | = | 16.01 | ÷ | 7.17 | 7.17 | = | 1,361,187 | ÷ | 189,763,454 | |
| Mar 14, 2006 | 2.53 | = | 15.88 | ÷ | 6.27 | 6.27 | = | 1,242,666 | ÷ | 198,096,049 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Teradyne Inc. Annual Report.
The Price to Book Value (P/BV) ratio for Teradyne Inc. exhibits significant volatility and a clear upward structural shift over the period from 2006 to 2024, transitioning from a period of valuation contraction to a phase of substantial premium expansion.
- Valuation Contraction and Crisis Bottom
- Between 2006 and 2009, the P/BV ratio declined from 2.53 to a period low of 0.96. This contraction reached its nadir in March 2009, where the share price fell below the book value per share, indicating a market valuation that did not account for the company's net asset value during the global financial crisis.
- Stability and Consolidation Phase
- From 2010 through 2016, the ratio stabilized, generally fluctuating between 1.78 and 3.00. During this interval, the book value per share demonstrated a steady upward trajectory, increasing from $3.75 in 2010 to $9.62 in 2016, while the P/BV ratio remained relatively contained, suggesting a consistent and modest market premium over assets.
- Rapid Valuation Expansion
- A significant shift in market sentiment occurred starting in 2017, with the P/BV ratio accelerating from 3.18 to a peak of 10.00 in February 2021. This expansion was driven by a disproportionate increase in share price relative to the book value per share, reflecting heightened investor expectations and a transition toward growth-oriented valuation metrics.
- Recent Correction and Normalization
- Following the 2021 peak, the ratio experienced a correction, descending to 6.21 by February 2024. Despite this decline from the peak, the current valuation remains substantially higher than the historical averages observed prior to 2017, with the ratio consolidating in the 6.2x to 7.1x range over the last three years.
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Comparison to Competitors
Teradyne Inc., P/BV, long-term trends, comparison to competitors
| Teradyne Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 22, 2024 | 6.21 | 4.85 | 2.53 | 8.23 | 21.59 | 1.75 | 23.25 | 10.58 | 2.24 | 1.74 | 26.03 | 5.72 | 8.57 |
| Feb 22, 2023 | 6.41 | 2.32 | 2.35 | 7.25 | 10.23 | 1.15 | 40.04 | 10.10 | 3.52 | 1.15 | 24.95 | 7.00 | 11.33 |
| Feb 23, 2022 | 7.07 | 19.21 | 2.50 | 10.60 | 10.50 | 2.21 | 15.98 | 13.64 | 3.84 | 1.79 | 20.14 | 15.59 | 11.87 |
| Feb 22, 2021 | 10.00 | 17.77 | 4.22 | 7.63 | 7.40 | 2.84 | 11.83 | 10.55 | 1.45 | 1.50 | 15.49 | 24.00 | 17.02 |
| Mar 2, 2020 | 6.82 | 20.46 | 3.61 | 6.67 | 5.09 | 3.78 | 8.15 | 6.40 | 1.75 | 1.40 | 10.09 | 19.69 | 13.79 |
| Mar 1, 2019 | 4.68 | 18.30 | 3.02 | 4.73 | 3.74 | 2.94 | 11.40 | 4.28 | 2.52 | 1.49 | 19.60 | 82.57 | 11.20 |
| Mar 1, 2018 | 4.49 | 19.87 | 3.22 | 5.94 | 5.28 | 3.08 | 10.50 | 3.82 | 1.96 | 2.51 | 10.51 | 2.56 | 9.89 |
| Mar 1, 2017 | 3.18 | 31.66 | 4.35 | 4.93 | 3.84 | 2.60 | 17.57 | 2.45 | 1.39 | 1.48 | 3.98 | 3.12 | 7.36 |
| Feb 29, 2016 | 1.98 | — | 3.72 | 2.87 | 8.24 | 2.21 | 19.59 | 2.23 | 1.50 | 1.47 | 2.84 | 2.88 | 5.30 |
| Feb 27, 2015 | 2.02 | 12.72 | 3.64 | 3.80 | 7.98 | 2.91 | 3.26 | 2.29 | 1.65 | 3.22 | 2.19 | 3.28 | 5.94 |
| Feb 28, 2014 | 1.98 | 4.94 | 3.28 | 2.82 | 4.46 | 2.11 | 2.78 | 1.69 | 1.18 | 1.92 | 1.63 | 3.26 | 4.46 |
| Mar 1, 2013 | 1.78 | 3.45 | 2.90 | 1.79 | 3.25 | 2.04 | 2.61 | 1.24 | 1.82 | 0.72 | 2.20 | 2.95 | 3.45 |
| Feb 29, 2012 | 2.03 | 3.28 | 2.62 | 1.65 | 3.51 | 2.90 | 2.11 | 1.80 | 1.85 | 0.64 | 3.27 | 3.25 | 3.48 |
| Mar 1, 2011 | 3.00 | 6.21 | 3.36 | 2.35 | 4.24 | 2.46 | 2.41 | 2.63 | 2.96 | 0.96 | 3.74 | 3.54 | 4.00 |
| Mar 1, 2010 | 2.77 | 8.23 | 3.43 | 2.53 | 3.78 | 2.76 | 2.44 | 2.67 | 1.53 | 1.25 | 2.27 | 3.61 | 3.10 |
| Mar 2, 2009 | 0.96 | — | 2.04 | 1.84 | — | 1.72 | 2.20 | 2.69 | 1.96 | 0.42 | 4.24 | 3.05 | 2.09 |
| Feb 28, 2008 | 1.74 | 1.44 | 3.99 | 3.14 | — | 2.76 | 3.26 | 4.05 | 3.29 | 0.96 | 5.06 | 4.11 | 4.14 |
| Mar 1, 2007 | 2.23 | 1.42 | 3.36 | 3.81 | — | 3.27 | 2.75 | 4.19 | 5.52 | 1.30 | 5.75 | 4.48 | 3.93 |
| Mar 14, 2006 | 2.53 | 5.83 | 3.75 | 3.42 | — | 3.34 | 3.19 | 3.75 | 3.85 | 1.47 | 3.63 | 5.97 | 4.00 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
Teradyne Inc., P/BV, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| Teradyne Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Feb 22, 2024 | 6.21 | 6.26 |
| Feb 22, 2023 | 6.41 | 5.10 |
| Feb 23, 2022 | 7.07 | 6.22 |
| Feb 22, 2021 | 10.00 | 5.97 |
| Mar 2, 2020 | 6.82 | 5.04 |
| Mar 1, 2019 | 4.68 | 4.59 |
| Mar 1, 2018 | 4.49 | 4.04 |
| Mar 1, 2017 | 3.18 | 3.35 |
| Feb 29, 2016 | 1.98 | 2.84 |
| Feb 27, 2015 | 2.02 | 3.36 |
| Feb 28, 2014 | 1.98 | 2.64 |
| Mar 1, 2013 | 1.78 | 2.32 |
| Feb 29, 2012 | 2.03 | 2.71 |
| Mar 1, 2011 | 3.00 | 2.82 |
| Mar 1, 2010 | 2.77 | 2.88 |
| Mar 2, 2009 | 0.96 | 2.07 |
| Feb 28, 2008 | 1.74 | 3.09 |
| Mar 1, 2007 | 2.23 | 3.39 |
| Mar 14, 2006 | 2.53 | 3.77 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Information Technology)
Teradyne Inc., P/BV, long-term trends, comparison to industry (information technology)
| Teradyne Inc. | Information Technology | |
|---|---|---|
| Feb 22, 2024 | 6.21 | 11.29 |
| Feb 22, 2023 | 6.41 | 10.25 |
| Feb 23, 2022 | 7.07 | 12.37 |
| Feb 22, 2021 | 10.00 | 10.94 |
| Mar 2, 2020 | 6.82 | 8.41 |
| Mar 1, 2019 | 4.68 | 7.00 |
| Mar 1, 2018 | 4.49 | 5.46 |
| Mar 1, 2017 | 3.18 | 4.53 |
| Feb 29, 2016 | 1.98 | 4.30 |
| Feb 27, 2015 | 2.02 | 4.36 |
| Feb 28, 2014 | 1.98 | 3.50 |
| Mar 1, 2013 | 1.78 | 3.75 |
| Feb 29, 2012 | 2.03 | 3.98 |
| Mar 1, 2011 | 3.00 | 4.16 |
| Mar 1, 2010 | 2.77 | 4.31 |
| Mar 2, 2009 | 0.96 | 4.00 |
| Feb 28, 2008 | 1.74 | 8.64 |
| Mar 1, 2007 | 2.23 | 7.24 |
| Mar 14, 2006 | 2.53 | 7.40 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).