Name: Teradyne Inc. (NASDAQ:TER) | Enterprise Value (EV)
Creator: Stock Analysis on Net

Current EV
Historical EV

Teradyne Inc., current enterprise value calculation

Current share price (P)	$120.44
No. shares of common stock outstanding	156,111,885
US$ in thousands
Common equity (market value)¹	18,802,115)
Total equity	18,802,115)
Add: Current debt (per books)	—)
Add: Long-term debt (per books)	—)
Total equity and debt	18,802,115)
Less: Cash and cash equivalents	757,571)
Less: Marketable securities	62,154)
Enterprise value (EV)	17,982,390)

Based on: 10-K (reporting date: 2023-12-31).

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 120.44 × 156,111,885

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Teradyne Inc., EV calculation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Share price^1, 2	$102.48	$100.77	$111.52	$132.39	$60.49
No. shares of common stock outstanding¹	153,080,607	156,047,868	162,417,046	166,694,772	166,784,497
US$ in thousands
Common equity (market value)³	15,687,701)	15,724,944)	18,112,749)	22,068,721)	10,088,794)
Total equity	15,687,701)	15,724,944)	18,112,749)	22,068,721)	10,088,794)
Add: Current debt (book value)	—)	50,115)	19,182)	33,343)	—)
Add: Long-term debt (book value)	—)	—)	89,244)	376,768)	394,687)
Total equity and debt	15,687,701)	15,775,059)	18,221,175)	22,478,832)	10,483,481)
Less: Cash and cash equivalents	757,571)	854,773)	1,122,199)	914,121)	773,924)
Less: Marketable securities	62,154)	39,612)	244,231)	522,280)	137,303)
Enterprise value (EV)	14,867,976)	14,880,674)	16,854,745)	21,042,431)	9,572,254)

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).

¹ Data adjusted for splits and stock dividends.

² Closing price as at the filing date of Teradyne Inc. Annual Report.

³ 2023 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 102.48 × 153,080,607

The valuation profile of the entity exhibits significant volatility between 2019 and 2023, characterized by a sharp increase in market capitalization followed by a multi-year correction and eventual stabilization.

Market Equity Trends: Common equity market value grew by approximately 119% from December 31, 2019, to December 31, 2020, reaching a peak of 22.07 billion USD. This valuation peak was followed by a consistent downward trajectory, decreasing to 18.11 billion USD in 2021 and further to 15.72 billion USD in 2022. By December 31, 2023, the market value showed signs of stabilization, remaining nearly flat at 15.69 billion USD.
Enterprise Value (EV) Analysis: Enterprise value closely mirrored the fluctuations of the equity market value. After a surge from 9.57 billion USD in 2019 to 21.04 billion USD in 2020, the EV declined over the subsequent two years, settling at 14.87 billion USD by the end of 2023. Despite the correction from the 2020 high, the 2023 EV remains approximately 55% higher than the 2019 baseline.
Capital Structure and Net Debt Position: A consistent gap is observed between common equity and enterprise value, where the EV is lower than the market value of equity across all reported periods. For instance, by December 31, 2023, the market value of equity was 15.69 billion USD, while the EV was 14.87 billion USD. This pattern indicates a net cash position, suggesting that the company's cash and cash equivalents exceed its total debt, which effectively reduces the enterprise value relative to the equity market capitalization.

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Teradyne Inc. (NASDAQ:TER)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)