Price to Sales (P/S)
since 2005
Calculation
Teradyne Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Revenues1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 22, 2024 | 5.86 | = | 102.48 | ÷ | 17.48 | 17.48 | = | 2,676,298 | ÷ | 153,080,607 | |
| Feb 22, 2023 | 4.98 | = | 100.77 | ÷ | 20.22 | 20.22 | = | 3,155,045 | ÷ | 156,047,868 | |
| Feb 23, 2022 | 4.89 | = | 111.52 | ÷ | 22.80 | 22.80 | = | 3,702,881 | ÷ | 162,417,046 | |
| Feb 22, 2021 | 7.07 | = | 132.39 | ÷ | 18.73 | 18.73 | = | 3,121,469 | ÷ | 166,694,772 | |
| Mar 2, 2020 | 4.40 | = | 60.49 | ÷ | 13.76 | 13.76 | = | 2,294,965 | ÷ | 166,784,497 | |
| Mar 1, 2019 | 3.39 | = | 41.00 | ÷ | 12.10 | 12.10 | = | 2,100,802 | ÷ | 173,629,283 | |
| Mar 1, 2018 | 4.11 | = | 44.90 | ÷ | 10.93 | 10.93 | = | 2,136,606 | ÷ | 195,422,673 | |
| Mar 1, 2017 | 3.32 | = | 29.07 | ÷ | 8.75 | 8.75 | = | 1,753,250 | ÷ | 200,302,178 | |
| Feb 29, 2016 | 2.38 | = | 19.08 | ÷ | 8.02 | 8.02 | = | 1,639,578 | ÷ | 204,336,493 | |
| Feb 27, 2015 | 2.55 | = | 19.32 | ÷ | 7.57 | 7.57 | = | 1,647,824 | ÷ | 217,783,809 | |
| Feb 28, 2014 | 2.75 | = | 20.28 | ÷ | 7.36 | 7.36 | = | 1,427,933 | ÷ | 193,977,544 | |
| Mar 1, 2013 | 1.91 | = | 16.62 | ÷ | 8.71 | 8.71 | = | 1,656,750 | ÷ | 190,315,020 | |
| Feb 29, 2012 | 2.14 | = | 16.42 | ÷ | 7.66 | 7.66 | = | 1,429,061 | ÷ | 186,457,258 | |
| Mar 1, 2011 | 2.10 | = | 18.19 | ÷ | 8.68 | 8.68 | = | 1,608,650 | ÷ | 185,346,619 | |
| Mar 1, 2010 | 2.25 | = | 10.39 | ÷ | 4.62 | 4.62 | = | 819,407 | ÷ | 177,237,096 | |
| Mar 2, 2009 | 0.61 | = | 3.93 | ÷ | 6.41 | 6.41 | = | 1,107,042 | ÷ | 172,696,518 | |
| Feb 28, 2008 | 1.94 | = | 12.26 | ÷ | 6.32 | 6.32 | = | 1,102,280 | ÷ | 174,344,112 | |
| Mar 1, 2007 | 2.21 | = | 16.01 | ÷ | 7.26 | 7.26 | = | 1,376,818 | ÷ | 189,763,454 | |
| Mar 14, 2006 | 2.93 | = | 15.88 | ÷ | 5.43 | 5.43 | = | 1,075,232 | ÷ | 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-Sales (P/S) ratio exhibits a clear transition from a period of relative stability and undervaluation to a regime of significantly higher valuation multiples over the last two decades. While sales per share grew steadily from 5.43 USD in 2006 to 17.48 USD in 2024, the share price experienced more volatile expansions, leading to substantial shifts in the P/S ratio.
- Initial Volatility and Market Bottom (2006–2010)
- A contraction in valuation is observed between 2006 and 2009, with the P/S ratio falling from 2.93 to a historical low of 0.61. This decline was driven by a sharp reduction in share price, which dropped to 3.93 USD by March 2009, while sales per share remained relatively resilient. A rapid recovery followed in 2010, as the P/S ratio returned to 2.25.
- Valuation Consolidation (2011–2016)
- During this six-year interval, the P/S ratio demonstrated remarkable stability, fluctuating within a narrow band between 2.10 and 2.75. The alignment between share price growth and sales per share growth during this period indicates a consistent market valuation of the company's revenue stream.
- Rapid Multiple Expansion (2017–2021)
- A significant upward trend in valuation occurred starting in 2017, with the P/S ratio climbing from 3.32 to a peak of 7.07 in February 2021. This expansion was characterized by share price growth that vastly outpaced revenue growth; the share price surged from 29.07 USD to 132.39 USD, while sales per share increased from 8.75 USD to 18.73 USD.
- High-Plateau Stabilization (2022–2024)
- Following the 2021 peak, the P/S ratio moderated but established a new, higher baseline. Between 2022 and 2024, the ratio fluctuated between 4.89 and 5.86. Despite a decline in sales per share from a peak of 22.80 USD in 2022 to 17.48 USD in 2024, the share price remained above 100 USD, sustaining a valuation multiple significantly higher than the historical averages seen prior to 2017.
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Comparison to Competitors
Teradyne Inc., P/S, 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 | 5.86 | 11.95 | 7.31 | 5.08 | 14.46 | 3.40 | 6.47 | 4.99 | 5.92 | 4.94 | 21.33 | 3.45 | 8.26 |
| Feb 22, 2023 | 4.98 | 5.38 | 7.14 | 3.43 | 7.00 | 1.85 | 6.09 | 3.68 | 12.40 | 1.87 | 24.67 | 2.85 | 8.25 |
| Feb 23, 2022 | 4.89 | 8.76 | 12.98 | 5.63 | 9.55 | 2.66 | 7.80 | 5.62 | 10.92 | 2.83 | 20.41 | 4.62 | 8.63 |
| Feb 22, 2021 | 7.07 | 10.63 | 9.03 | 4.69 | 7.40 | 2.96 | 5.43 | 5.43 | 4.66 | 2.73 | 17.31 | 6.20 | 10.81 |
| Mar 2, 2020 | 4.40 | 8.59 | 7.06 | 3.75 | 5.62 | 4.07 | 4.74 | 3.10 | 4.47 | 2.15 | 8.05 | 3.98 | 8.54 |
| Mar 1, 2019 | 3.39 | 3.58 | 5.35 | 1.87 | 4.78 | 3.09 | 4.58 | 2.51 | 4.33 | 1.58 | 15.07 | 3.37 | 6.38 |
| Mar 1, 2018 | 4.11 | 2.28 | 6.40 | 3.82 | 6.07 | 3.39 | 4.00 | 3.25 | 3.40 | 2.30 | 8.76 | 3.54 | 6.83 |
| Mar 1, 2017 | 3.32 | 3.08 | 6.57 | 3.29 | 5.48 | 2.90 | 4.06 | 2.46 | 2.12 | 1.44 | 3.55 | 4.21 | 5.77 |
| Feb 29, 2016 | 2.38 | 0.38 | 5.49 | 2.26 | 5.69 | 2.44 | 2.93 | 2.17 | 2.08 | 1.12 | 2.68 | 3.58 | 4.06 |
| Feb 27, 2015 | 2.55 | 0.43 | 6.04 | 3.29 | 6.06 | 2.91 | 4.08 | 2.50 | 2.26 | 2.12 | 2.36 | 4.85 | 4.73 |
| Feb 28, 2014 | 2.75 | 0.51 | 5.90 | 2.66 | 5.11 | 2.34 | 3.40 | 2.10 | 1.68 | 1.94 | 1.84 | 4.74 | 3.95 |
| Mar 1, 2013 | 1.91 | 0.34 | 4.48 | 1.48 | 3.33 | 1.96 | 2.73 | 2.39 | 2.70 | 0.67 | 2.28 | 5.18 | 2.94 |
| Feb 29, 2012 | 2.14 | 0.79 | 3.32 | 1.38 | 3.01 | 2.47 | 1.90 | 1.38 | 2.83 | 0.62 | 2.94 | 5.86 | 2.78 |
| Mar 1, 2011 | 2.10 | 0.97 | 3.89 | 1.86 | 3.05 | 2.79 | 2.98 | 2.18 | 4.65 | 0.91 | 3.00 | 6.72 | 2.99 |
| Mar 1, 2010 | 2.25 | 0.99 | 4.31 | 3.58 | 2.65 | 3.28 | 3.50 | 3.47 | 1.98 | 1.21 | 1.58 | 7.03 | 2.89 |
| Mar 2, 2009 | 0.61 | 0.22 | 1.91 | 1.71 | — | 1.79 | 2.60 | 1.94 | 2.31 | 0.44 | 2.71 | 4.91 | 1.56 |
| Feb 28, 2008 | 1.94 | 0.72 | 3.67 | 2.52 | — | 3.08 | 4.24 | 1.86 | 4.75 | 1.30 | 3.31 | 7.33 | 2.99 |
| Mar 1, 2007 | 2.21 | 1.45 | 4.48 | 2.77 | — | 3.40 | 4.75 | 3.56 | 10.06 | 2.00 | 3.53 | 7.98 | 3.13 |
| Mar 14, 2006 | 2.93 | 3.34 | 5.79 | 4.36 | — | 3.11 | 4.66 | 2.66 | 7.86 | 1.76 | 2.13 | 11.70 | 3.57 |
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/S, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| Teradyne Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Feb 22, 2024 | 5.86 | 8.21 |
| Feb 22, 2023 | 4.98 | 5.92 |
| Feb 23, 2022 | 4.89 | 6.36 |
| Feb 22, 2021 | 7.07 | 5.78 |
| Mar 2, 2020 | 4.40 | 4.71 |
| Mar 1, 2019 | 3.39 | 3.84 |
| Mar 1, 2018 | 4.11 | 4.12 |
| Mar 1, 2017 | 3.32 | 3.57 |
| Feb 29, 2016 | 2.38 | 2.78 |
| Feb 27, 2015 | 2.55 | 3.39 |
| Feb 28, 2014 | 2.75 | 2.97 |
| Mar 1, 2013 | 1.91 | 2.50 |
| Feb 29, 2012 | 2.14 | 2.61 |
| Mar 1, 2011 | 2.10 | 2.95 |
| Mar 1, 2010 | 2.25 | 3.36 |
| Mar 2, 2009 | 0.61 | 2.02 |
| Feb 28, 2008 | 1.94 | 3.21 |
| Mar 1, 2007 | 2.21 | 3.67 |
| Mar 14, 2006 | 2.93 | 3.95 |
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/S, long-term trends, comparison to industry (information technology)
| Teradyne Inc. | Information Technology | |
|---|---|---|
| Feb 22, 2024 | 5.86 | 7.31 |
| Feb 22, 2023 | 4.98 | 6.01 |
| Feb 23, 2022 | 4.89 | 6.98 |
| Feb 22, 2021 | 7.07 | 6.11 |
| Mar 2, 2020 | 4.40 | 4.62 |
| Mar 1, 2019 | 3.39 | 4.31 |
| Mar 1, 2018 | 4.11 | 4.18 |
| Mar 1, 2017 | 3.32 | 3.46 |
| Feb 29, 2016 | 2.38 | 3.03 |
| Feb 27, 2015 | 2.55 | 3.31 |
| Feb 28, 2014 | 2.75 | 2.85 |
| Mar 1, 2013 | 1.91 | 2.88 |
| Feb 29, 2012 | 2.14 | 2.84 |
| Mar 1, 2011 | 2.10 | 3.04 |
| Mar 1, 2010 | 2.25 | 3.11 |
| Mar 2, 2009 | 0.61 | 2.38 |
| Feb 28, 2008 | 1.94 | 5.73 |
| Mar 1, 2007 | 2.21 | 5.21 |
| Mar 14, 2006 | 2.93 | 5.62 |
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).