Price to Earnings (P/E)
since 2005
Calculation
Teradyne Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income (loss)1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 22, 2024 | 34.96 | = | 102.48 | ÷ | 2.93 | 2.93 | = | 448,752 | ÷ | 153,080,607 | |
| Feb 22, 2023 | 21.98 | = | 100.77 | ÷ | 4.59 | 4.59 | = | 715,501 | ÷ | 156,047,868 | |
| Feb 23, 2022 | 17.85 | = | 111.52 | ÷ | 6.25 | 6.25 | = | 1,014,589 | ÷ | 162,417,046 | |
| Feb 22, 2021 | 28.14 | = | 132.39 | ÷ | 4.70 | 4.70 | = | 784,147 | ÷ | 166,694,772 | |
| Mar 2, 2020 | 21.58 | = | 60.49 | ÷ | 2.80 | 2.80 | = | 467,468 | ÷ | 166,784,497 | |
| Mar 1, 2019 | 15.76 | = | 41.00 | ÷ | 2.60 | 2.60 | = | 451,779 | ÷ | 173,629,283 | |
| Mar 1, 2018 | 34.05 | = | 44.90 | ÷ | 1.32 | 1.32 | = | 257,692 | ÷ | 195,422,673 | |
| Mar 1, 2017 | — | = | 29.07 | ÷ | -0.22 | -0.22 | = | -43,421 | ÷ | 200,302,178 | |
| Feb 29, 2016 | 18.88 | = | 19.08 | ÷ | 1.01 | 1.01 | = | 206,477 | ÷ | 204,336,493 | |
| Feb 27, 2015 | 51.77 | = | 19.32 | ÷ | 0.37 | 0.37 | = | 81,272 | ÷ | 217,783,809 | |
| Feb 28, 2014 | 23.85 | = | 20.28 | ÷ | 0.85 | 0.85 | = | 164,947 | ÷ | 193,977,544 | |
| Mar 1, 2013 | 14.57 | = | 16.62 | ÷ | 1.14 | 1.14 | = | 217,049 | ÷ | 190,315,020 | |
| Feb 29, 2012 | 8.19 | = | 16.42 | ÷ | 2.00 | 2.00 | = | 373,809 | ÷ | 186,457,258 | |
| Mar 1, 2011 | 8.88 | = | 18.19 | ÷ | 2.05 | 2.05 | = | 379,730 | ÷ | 185,346,619 | |
| Mar 1, 2010 | — | = | 10.39 | ÷ | -0.76 | -0.76 | = | -133,837 | ÷ | 177,237,096 | |
| Mar 2, 2009 | — | = | 3.93 | ÷ | -2.30 | -2.30 | = | -397,834 | ÷ | 172,696,518 | |
| Feb 28, 2008 | 27.51 | = | 12.26 | ÷ | 0.45 | 0.45 | = | 77,711 | ÷ | 174,344,112 | |
| Mar 1, 2007 | 15.29 | = | 16.01 | ÷ | 1.05 | 1.05 | = | 198,757 | ÷ | 189,763,454 | |
| Mar 14, 2006 | 34.70 | = | 15.88 | ÷ | 0.46 | 0.46 | = | 90,648 | ÷ | 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 data exhibit notable fluctuations and trends in share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over the analyzed periods.
- Share price trends
- The share price began at $15.88 in early 2006 and remained relatively stable, with minor volatility, until 2008. A significant drop occurred in 2009, reaching a low of $3.93. From 2010 onwards, the share price generally showed an upward trend, recovering quickly and reaching new highs. Notably, from 2017 to 2021, there was a sharp and continuous increase, peaking at $132.39 in early 2021. Following this peak, the share price experienced a decline but stabilized above $100, ending at $102.48 in 2024.
- Earnings per share (EPS) trends
- EPS values showed considerable volatility. Initially, EPS increased from $0.46 in 2006 to $1.05 in 2007, but dropped sharply to negative values in 2009 (-$2.30) and 2010 (-$0.76), indicating periods of unprofitability. Recovery began in 2011, with EPS returning to positive values, fluctuating moderately until 2016. From 2018, EPS demonstrated a strong upward trend, peaking at $6.25 in 2022 before declining to $2.93 in 2024. The notable rise between 2018 and 2022 suggests improved operational performance or profitability during these years.
- Price-to-Earnings (P/E) ratio patterns
- The P/E ratio exhibited high volatility and several missing data points. Initially, it declined from 34.7 in 2006 to 15.29 in 2007, then rose significantly again before values were not reported during 2009 and 2010, corresponding with negative EPS years. From 2011 forward, the P/E ratio fluctuated broadly, reaching a peak of 51.77 in 2015, which suggests a market premium relative to earnings at that time. Following this, the ratio varied between approximately 15 and 35 through to 2024, reflecting changing investor sentiment and earnings performance. The increase in P/E around 2017 and 2020 corresponds with periods of rising share prices and earnings.
- Overall insights
- The company experienced a difficult financial period around 2008-2010, marked by a sharp decline in share price and negative earnings. Post-2010, improvement is evident with recovery and growth in earnings and share price. The cluster of high EPS and elevated share prices post-2017 indicates a strong phase for the company. However, the share price's decline after its 2021 peak, alongside the drop in EPS thereafter, may imply market reassessment or potentially emerging challenges. The fluctuating P/E ratios reflect shifts in market valuation relative to earnings, highlighting periods of investor optimism and caution.
Comparison to Competitors
Teradyne Inc., P/E, 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. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 22, 2024 | 34.96 | 317.27 | 27.14 | 19.63 | 36.78 | 109.27 | 20.04 | 19.26 | — | 131.70 | 17.07 | 22.24 |
| Feb 22, 2023 | 21.98 | 96.16 | 31.21 | 13.55 | 20.70 | 14.54 | 16.89 | 13.77 | 6.62 | 68.08 | 9.75 | 18.88 |
| Feb 23, 2022 | 17.85 | 45.54 | 68.31 | 22.05 | 40.73 | 10.59 | 25.97 | 21.03 | 13.38 | 78.54 | 17.15 | 20.38 |
| Feb 22, 2021 | 28.14 | 41.66 | 41.43 | 22.31 | 66.38 | 11.02 | 25.92 | 24.23 | 21.80 | 67.59 | 28.06 | 27.95 |
| Mar 2, 2020 | 21.58 | 169.62 | 31.04 | 20.25 | 47.09 | 13.91 | 18.44 | 13.64 | 7.98 | 22.77 | 22.03 | 24.47 |
| Mar 1, 2019 | 15.76 | 68.76 | 22.17 | 9.75 | 8.14 | 10.41 | 23.02 | 11.70 | 3.40 | 48.05 | — | 18.05 |
| Mar 1, 2018 | 34.05 | 282.39 | 44.94 | 16.16 | 63.27 | 22.15 | 15.04 | 15.33 | 9.20 | 36.34 | 31.96 | 27.77 |
| Mar 1, 2017 | — | — | 26.07 | 20.68 | — | 16.72 | 17.19 | 15.81 | — | 28.95 | 17.37 | 21.45 |
| Feb 29, 2016 | 18.88 | — | 27.06 | 15.88 | 28.48 | 11.85 | 22.52 | 17.37 | 6.25 | 19.88 | 17.18 | 17.66 |
| Feb 27, 2015 | 51.77 | — | 27.51 | 27.87 | 98.35 | 13.90 | 20.53 | 18.20 | 11.39 | 22.17 | 16.11 | 21.89 |
| Feb 28, 2014 | 23.85 | — | 23.06 | 78.13 | 23.31 | 12.80 | 17.83 | 66.48 | 14.78 | 14.02 | 17.19 | 22.29 |
| Mar 1, 2013 | 14.57 | — | 18.56 | 118.67 | 13.97 | 9.48 | 11.46 | 37.82 | — | 15.69 | 16.21 | 21.47 |
| Feb 29, 2012 | 8.19 | 10.61 | 11.45 | 7.52 | 12.75 | 10.29 | 7.61 | 6.16 | 32.47 | 41.12 | 20.59 | 17.06 |
| Mar 1, 2011 | 8.88 | 13.36 | 15.08 | 18.91 | 15.37 | 10.60 | 25.53 | 13.40 | 4.16 | — | 22.76 | 12.93 |
| Mar 1, 2010 | — | 17.53 | 35.03 | — | — | 26.39 | — | — | — | — | 46.01 | 20.53 |
| Mar 2, 2009 | — | — | 6.28 | 14.45 | — | 12.70 | 18.23 | 10.91 | — | 13.91 | 17.31 | 10.17 |
| Feb 28, 2008 | 27.51 | — | 18.79 | 14.37 | — | 16.91 | 21.96 | 6.95 | — | 22.62 | 19.70 | 15.55 |
| Mar 1, 2007 | 15.29 | — | 20.98 | 16.71 | — | 23.84 | 25.83 | 17.41 | 25.89 | 27.68 | 24.33 | 10.29 |
| Mar 14, 2006 | 34.70 | 118.04 | 33.33 | 25.22 | — | 13.93 | 20.82 | 13.36 | 45.76 | 42.67 | 30.98 | 20.56 |
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/E, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| Teradyne Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Feb 22, 2024 | 34.96 | 48.39 |
| Feb 22, 2023 | 21.98 | 22.88 |
| Feb 23, 2022 | 17.85 | 24.52 |
| Feb 22, 2021 | 28.14 | 25.24 |
| Mar 2, 2020 | 21.58 | 19.28 |
| Mar 1, 2019 | 15.76 | 13.87 |
| Mar 1, 2018 | 34.05 | 24.12 |
| Mar 1, 2017 | — | 25.31 |
| Feb 29, 2016 | 18.88 | 15.18 |
| Feb 27, 2015 | 51.77 | 17.26 |
| Feb 28, 2014 | 23.85 | 17.06 |
| Mar 1, 2013 | 14.57 | 15.68 |
| Feb 29, 2012 | 8.19 | 12.77 |
| Mar 1, 2011 | 8.88 | 13.41 |
| Mar 1, 2010 | — | 55.64 |
| Mar 2, 2009 | — | 20.73 |
| Feb 28, 2008 | 27.51 | 22.62 |
| Mar 1, 2007 | 15.29 | 20.07 |
| Mar 14, 2006 | 34.70 | 20.37 |
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/E, long-term trends, comparison to industry (information technology)
| Teradyne Inc. | Information Technology | |
|---|---|---|
| Feb 22, 2024 | 34.96 | 35.92 |
| Feb 22, 2023 | 21.98 | 26.81 |
| Feb 23, 2022 | 17.85 | 29.54 |
| Feb 22, 2021 | 28.14 | 31.10 |
| Mar 2, 2020 | 21.58 | 23.24 |
| Mar 1, 2019 | 15.76 | 23.20 |
| Mar 1, 2018 | 34.05 | 23.46 |
| Mar 1, 2017 | — | 19.50 |
| Feb 29, 2016 | 18.88 | 16.54 |
| Feb 27, 2015 | 51.77 | 17.12 |
| Feb 28, 2014 | 23.85 | 14.15 |
| Mar 1, 2013 | 14.57 | 14.37 |
| Feb 29, 2012 | 8.19 | 13.74 |
| Mar 1, 2011 | 8.88 | 14.99 |
| Mar 1, 2010 | — | 21.44 |
| Mar 2, 2009 | — | 15.67 |
| Feb 28, 2008 | 27.51 | 36.25 |
| Mar 1, 2007 | 15.29 | 31.93 |
| Mar 14, 2006 | 34.70 | 33.62 |
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).