Paying user area
Try for free
Teradyne Inc. pages available for free this week:
- Statement of Comprehensive Income
- Cash Flow Statement
- Common-Size Income Statement
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Teradyne Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
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).
The financial data over the five-year period reveals several notable trends in key profitability metrics. Net income demonstrated a robust increase from 2019 through 2021, rising from approximately $467 million to over $1 billion, indicating strong earnings growth during this initial period. However, starting in 2022, there was a noticeable decline, with net income decreasing to approximately $716 million and further dropping to about $449 million in 2023, suggesting a downturn in profitability in the most recent years.
Earnings before tax (EBT) and earnings before interest and tax (EBIT) follow a highly similar trajectory. Both metrics increased steadily from 2019 to 2021, reaching respective peaks of approximately $1.16 billion and $1.18 billion. Subsequently, both experienced declines, falling to roughly $840 million in 2022 and then approximately $526 million in 2023. The parallel movement of EBT and EBIT indicates that interest expenses and tax impacts remained proportionally consistent throughout the period.
EBITDA, which includes depreciation and amortization adjustments, also showed a similar trend. From $670 million in 2019, it climbed steadily to a peak of about $1.3 billion in 2021, marking the highest operational cash flow generation within the timeframe. Following this peak, EBITDA decreased significantly, falling to approximately $955 million in 2022 and further declining to around $640 million in 2023.
Overall, the data suggests strong financial performance and earnings growth during the early years analyzed, with peaks reached in 2021. The subsequent two years reveal a marked decline in profitability and earnings, with all four key metrics reducing by nearly half or more relative to their 2021 highs. This pattern points to potential operational challenges or external factors adversely affecting the company’s earnings capacity after 2021. The consistency of the decline across net income, EBT, EBIT, and EBITDA highlights a broad impact on profitability and cash flow from core operations.
Enterprise Value to EBITDA Ratio, Current
Selected Financial Data (US$ in thousands) | |
Enterprise value (EV) | |
Earnings before interest, tax, depreciation and amortization (EBITDA) | |
Valuation Ratio | |
EV/EBITDA | |
Benchmarks | |
EV/EBITDA, Competitors1 | |
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. | |
EV/EBITDA, Sector | |
Semiconductors & Semiconductor Equipment | |
EV/EBITDA, Industry | |
Information Technology |
Based on: 10-K (reporting date: 2023-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Enterprise value (EV)1 | ||||||
Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
Valuation Ratio | ||||||
EV/EBITDA3 | ||||||
Benchmarks | ||||||
EV/EBITDA, Competitors4 | ||||||
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. | ||||||
EV/EBITDA, Sector | ||||||
Semiconductors & Semiconductor Equipment | ||||||
EV/EBITDA, Industry | ||||||
Information Technology |
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).
3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV) Trend
- The enterprise value exhibited significant volatility over the examined period. Starting at approximately 9.57 billion USD at the end of 2019, it more than doubled in 2020, reaching over 21 billion USD. Subsequently, it declined sharply over the next two years, dropping to around 14.88 billion USD by the end of 2022 and remaining relatively stable through the end of 2023.
- EBITDA Trend
- Earnings before interest, tax, depreciation, and amortization showed a rising trend initially, increasing from roughly 670 million USD in 2019 to a peak of 1.3 billion USD in 2021. After 2021, EBITDA experienced a decline, falling to approximately 641 million USD by the end of 2023, indicating a diminishing operational profitability in the most recent years.
- EV/EBITDA Ratio Analysis
- The EV/EBITDA ratio demonstrated considerable fluctuation throughout the years. It rose from 14.3 in 2019 to a high of 20 in 2020, then decreased to around 12.92 in 2021. This was followed by a gradual increase to 15.59 in 2022, culminating in a significant jump to 23.22 in 2023. The sharp rise in the ratio in the latest year suggests that the enterprise value relative to EBITDA increased markedly, potentially reflecting market expectations, valuation adjustments, or a decrease in earnings quality.
- Overall Insights
- The data reveals a period of expansion in enterprise value and EBITDA up to 2021, followed by a contraction in both metrics, with enterprise value declining more rapidly in 2022 and stabilizing thereafter, while EBITDA continued to diminish. The volatility in the EV/EBITDA ratio suggests shifting market perceptions or operational challenges impacting valuation multiples. The elevated ratio in 2023, despite reduced EBITDA, could imply increased investor risk premiums or strategic repositioning.