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 long-term financial trajectory shows a significant evolution in both valuation and earnings capacity over the observed period. The relationship between share price and earnings per share (EPS) has transitioned from a phase of high volatility and low absolute values to a period of higher price stability supported by substantially increased earnings.
- Earnings Volatility and Valuation Gaps
- Periods of negative earnings per share were recorded in 2009, 2010, and 2017, resulting in the absence of price-to-earnings (P/E) ratios for those years. These intervals indicate phases of financial instability or structural transitions that interrupted the consistency of the valuation metric.
- P/E Ratio Fluctuations
- The P/E ratio exhibited extreme variance between 2011 and 2016, reaching a cyclical low of 8.19 in 2012 and a peak of 51.77 in 2015. This suggests significant shifts in market sentiment or expectations regarding growth prospects during that five-year window.
- Correlation Between Price and EPS Growth
- A marked increase in share price began in 2017, escalating from $29.07 to a peak of $132.39 by 2021. This price appreciation was mirrored by a strong upward trend in EPS, which rose from $1.32 in 2018 to a peak of $6.25 in 2022. The simultaneous growth in both metrics indicates that the higher share prices in the latter part of the period were fundamentally supported by increased profitability.
- Recent Valuation Stability
- From 2018 to 2024, the P/E ratio has generally fluctuated between 15.76 and 34.96. While the share price has remained elevated above $100, the P/E ratio has avoided the extreme peaks seen in 2015, suggesting a more normalized valuation relative to the company's current earning power.
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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. | Marvell Technology Inc. | 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 | 7.94 | 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 | 20.02 | 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 | 372.92 | 9.20 | 36.34 | 31.96 | 27.77 |
| Mar 1, 2017 | — | — | 26.07 | 20.68 | — | 16.72 | 17.18 | 15.81 | — | — | 28.95 | 17.37 | 21.45 |
| Feb 29, 2016 | 18.88 | — | 27.06 | 15.88 | 28.48 | 11.85 | 22.54 | 17.37 | 17.70 | 6.25 | 19.88 | 17.18 | 17.66 |
| Feb 27, 2015 | 51.77 | — | 27.51 | 27.87 | 98.35 | 13.90 | 20.52 | 18.20 | 24.44 | 11.39 | 22.17 | 16.11 | 21.89 |
| Feb 28, 2014 | 23.85 | — | 23.06 | 78.13 | 23.31 | 12.80 | 17.82 | 66.48 | 17.31 | 14.78 | 14.02 | 17.19 | 22.29 |
| Mar 1, 2013 | 14.57 | — | 18.56 | 118.67 | 13.97 | 9.48 | 11.45 | 37.82 | 14.87 | — | 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 | 11.31 | 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 | 36.98 | 4.16 | — | 22.76 | 12.93 |
| Mar 1, 2010 | — | 17.53 | 35.03 | — | — | 26.39 | — | — | 39.76 | — | — | 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 | 21.95 | 6.95 | — | — | 22.62 | 19.70 | 15.55 |
| Mar 1, 2007 | 15.29 | — | 20.98 | 16.71 | — | 23.84 | 25.83 | 17.41 | 50.71 | 25.89 | 27.68 | 24.33 | 10.29 |
| Mar 14, 2006 | 34.70 | 118.04 | 33.33 | 25.22 | — | 13.93 | 20.83 | 13.36 | 67.90 | 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 | 49.31 |
| Feb 22, 2023 | 21.98 | 23.72 |
| Feb 23, 2022 | 17.85 | 25.08 |
| Feb 22, 2021 | 28.14 | 24.71 |
| Mar 2, 2020 | 21.58 | 19.59 |
| Mar 1, 2019 | 15.76 | 13.92 |
| Mar 1, 2018 | 34.05 | 24.36 |
| Mar 1, 2017 | — | 26.55 |
| Feb 29, 2016 | 18.88 | 15.22 |
| Feb 27, 2015 | 51.77 | 17.33 |
| Feb 28, 2014 | 23.85 | 17.07 |
| Mar 1, 2013 | 14.57 | 15.65 |
| Feb 29, 2012 | 8.19 | 12.72 |
| Mar 1, 2011 | 8.88 | 13.77 |
| Mar 1, 2010 | — | 55.18 |
| Mar 2, 2009 | — | 21.75 |
| Feb 28, 2008 | 27.51 | 23.45 |
| Mar 1, 2007 | 15.29 | 20.73 |
| Mar 14, 2006 | 34.70 | 20.78 |
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 | 36.13 |
| Feb 22, 2023 | 21.98 | 26.99 |
| Feb 23, 2022 | 17.85 | 29.75 |
| Feb 22, 2021 | 28.14 | 30.97 |
| Mar 2, 2020 | 21.58 | 23.40 |
| Mar 1, 2019 | 15.76 | 23.17 |
| Mar 1, 2018 | 34.05 | 23.55 |
| Mar 1, 2017 | — | 19.69 |
| Feb 29, 2016 | 18.88 | 16.54 |
| Feb 27, 2015 | 51.77 | 17.14 |
| Feb 28, 2014 | 23.85 | 14.15 |
| Mar 1, 2013 | 14.57 | 14.37 |
| Feb 29, 2012 | 8.19 | 13.71 |
| Mar 1, 2011 | 8.88 | 15.08 |
| Mar 1, 2010 | — | 21.50 |
| Mar 2, 2009 | — | 15.83 |
| Feb 28, 2008 | 27.51 | 36.48 |
| Mar 1, 2007 | 15.29 | 32.07 |
| Mar 14, 2006 | 34.70 | 33.76 |
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).