Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Historical Valuation Ratios (Summary)
Teradyne Inc., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).
- Price to Earnings (P/E) Ratio
-
The P/E ratio exhibited notable fluctuations over the observed periods, beginning at 18.17 and reaching as high as 43.79. The values showed an initial increase through 2020, peaking at 28.14 in December 2020, followed by a decline through mid-2022, where it stabilized around the high teens.
From early 2023 onward, there was a marked upward trend, with the ratio rising from 22.54 in July 2023 to 43.79 by March 2024, indicating growing investor expectations of future earnings or a potential overvaluation relative to earnings during this period.
- Price to Operating Profit (P/OP) Ratio
-
Similar to the P/E ratio, the P/OP ratio fluctuated significantly. Starting at 14.55 in March 2020, it peaked at 23.77 in December 2020. The ratio then decreased steadily to values around the mid-teens by late 2022.
In 2023, the P/OP ratio demonstrated a sharp increase, rising to 38.69 by March 2024. This suggests that the market valuation relative to operating profit increased substantially, aligning with the elevated investor optimism or expectations reflected in the P/E ratio.
- Price to Sales (P/S) Ratio
-
The P/S ratio followed a somewhat cyclical pattern. It rose from 3.88 in March 2020 to a peak of 7.07 in December 2020 before descending to around 4.6 in mid-2022.
Post mid-2022, the ratio showed a moderate upward movement, reaching 7.07 again by March 2024. This recurrence to previous highs may indicate renewed investor confidence in revenue growth prospects or adjustments in valuation metrics relative to sales.
- Price to Book Value (P/BV) Ratio
-
The P/BV ratio showed less volatility relative to other valuation metrics, starting at 6.26 in March 2020 with a peak of 10 in December 2020.
Following this, the ratio declined and stabilized near values between 5.5 and 7.5 from 2022 through early 2024, ending at 7.35 in March 2024. The moderate changes suggest a relatively stable valuation relative to book value, with a mild upward bias in recent periods.
- Overall Observations
-
Across all valuation multiples, a distinct pattern emerges with a peak in late 2020, a subsequent decline to mid-2022, and a robust recovery and rise through 2023 into early 2024.
The rising trends in P/E and P/OP ratios in 2023 and early 2024 are particularly pronounced, possibly reflecting increased market optimism about profitability and earnings growth. Meanwhile, the P/S and P/BV ratios also rose but with less volatility, indicating relative stability in sales and book value metrics compared to earnings-based measures.
Price to Earnings (P/E)
Teradyne Inc., historical P/E calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Oct 1, 2023 | Jul 2, 2023 | Apr 2, 2023 | Dec 31, 2022 | Oct 2, 2022 | Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 156,111,885 | 153,080,607 | 152,878,728 | 154,013,736 | 155,038,743 | 156,047,868 | 155,756,146 | 156,781,680 | 160,203,017 | 162,417,046 | 163,004,340 | 164,973,199 | 166,266,321 | 166,694,772 | 166,055,827 | 166,032,335 | 165,768,292 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Net income (in thousands) | 64,197) | 117,055) | 128,116) | 120,050) | 83,531) | 172,301) | 183,485) | 197,787) | 161,928) | 224,040) | 256,718) | 328,319) | 205,512) | 196,330) | 222,718) | 188,908) | 176,191) | ||||||
| Earnings per share (EPS)2 | 2.75 | 2.93 | 3.30 | 3.63 | 4.11 | 4.59 | 4.93 | 5.36 | 6.06 | 6.25 | 6.05 | 5.78 | 4.89 | 4.70 | 4.29 | 3.77 | 3.22 | ||||||
| Share price1, 3 | 120.44 | 102.48 | 87.70 | 107.41 | 92.63 | 100.77 | 84.72 | 100.75 | 105.92 | 111.52 | 144.22 | 126.87 | 128.17 | 132.39 | 89.70 | 90.26 | 58.58 | ||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/E ratio4 | 43.79 | 34.96 | 26.60 | 29.57 | 22.54 | 21.98 | 17.20 | 18.79 | 17.48 | 17.85 | 23.82 | 21.97 | 26.20 | 28.14 | 20.89 | 23.94 | 18.17 | ||||||
| Benchmarks | |||||||||||||||||||||||
| P/E Ratio, Competitors5 | |||||||||||||||||||||||
| Advanced Micro Devices Inc. | 208.95 | 317.27 | 839.13 | — | 332.75 | 96.16 | 41.59 | 50.59 | 47.48 | 45.54 | 37.20 | 34.57 | 35.41 | — | — | — | — | ||||||
| Analog Devices Inc. | 34.12 | 27.14 | 23.57 | 23.96 | 28.93 | 31.21 | 46.35 | 50.61 | 68.72 | 68.31 | 35.88 | 36.19 | 41.93 | 41.43 | 39.23 | 37.97 | 37.64 | ||||||
| Applied Materials Inc. | 23.55 | 19.63 | 18.50 | 17.61 | 14.79 | 13.55 | 13.59 | 14.82 | 17.99 | 22.05 | 22.54 | 28.42 | 27.11 | 22.31 | 18.29 | 17.29 | 21.57 | ||||||
| Broadcom Inc. | 50.29 | 36.78 | 25.96 | 24.11 | 20.92 | 20.70 | 21.10 | 26.03 | 31.86 | 40.73 | 35.19 | 42.12 | 50.39 | 66.38 | 65.22 | 51.79 | 36.94 | ||||||
| Intel Corp. | 33.38 | 109.27 | — | — | — | 14.54 | 9.02 | 7.80 | 7.24 | 9.85 | 9.53 | 11.59 | 12.86 | — | — | — | — | ||||||
| KLA Corp. | 20.06 | 20.04 | 15.12 | 15.62 | 13.89 | 16.89 | 15.13 | 18.50 | 19.76 | 25.97 | 26.04 | 33.15 | 23.59 | — | — | — | — | ||||||
| Lam Research Corp. | 19.89 | 19.26 | 14.05 | 12.60 | 10.51 | 13.77 | 13.97 | 17.91 | 18.12 | 21.03 | 26.30 | 24.88 | 18.97 | — | — | — | — | ||||||
| Micron Technology Inc. | — | — | — | 43.16 | 8.72 | 6.62 | 5.97 | 9.80 | 14.54 | 13.38 | 21.84 | 32.41 | 28.88 | — | — | — | — | ||||||
| NVIDIA Corp. | 200.72 | 131.70 | 63.65 | 48.55 | 49.72 | 68.08 | 97.36 | 73.53 | 73.45 | 78.54 | 86.91 | 88.41 | 65.08 | — | — | — | — | ||||||
| Qualcomm Inc. | 21.35 | 17.07 | 16.75 | 11.92 | 12.87 | 9.75 | 13.40 | 13.56 | 21.24 | 17.15 | 17.46 | 19.20 | 27.40 | 28.06 | 38.25 | 21.95 | 24.49 | ||||||
| Texas Instruments Inc. | 26.94 | 22.24 | 18.13 | 20.79 | 18.08 | 18.88 | 16.05 | 18.27 | 19.01 | 20.38 | 23.61 | 25.25 | 27.20 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).
1 Data adjusted for splits and stock dividends.
2 Q1 2024 Calculation
EPS
= (Net incomeQ1 2024
+ Net incomeQ4 2023
+ Net incomeQ3 2023
+ Net incomeQ2 2023)
÷ No. shares of common stock outstanding
= (64,197,000 + 117,055,000 + 128,116,000 + 120,050,000)
÷ 156,111,885 = 2.75
3 Closing price as at the filing date of Teradyne Inc. Quarterly or Annual Report.
4 Q1 2024 Calculation
P/E ratio = Share price ÷ EPS
= 120.44 ÷ 2.75 = 43.79
5 Click competitor name to see calculations.
- Share Price Trends
- The share price exhibited a strong upward trend from March 2020, rising from $58.58 to a peak of $144.22 in October 2021. Following this peak, there was a notable decline through 2022, with the price dropping to $84.72 by October 2022. Subsequently, the share price displayed volatility but generally recovered towards the end of 2023 and into early 2024, reaching $120.44 by March 31, 2024.
- Earnings Per Share (EPS) Progression
- EPS steadily increased from $3.22 in March 2020 to its highest point of $6.25 in December 2021, indicating consistent profitability growth over this period. However, from early 2022 onward, there was a gradual decline in EPS, falling to $2.75 by the end of March 2024. This decline suggests a weakening in earnings performance during this latter period.
- Price-to-Earnings (P/E) Ratio Dynamics
- The P/E ratio moved within a broad range, starting at 18.17 in March 2020 and reaching a low of 17.2 in October 2022. After this period, the ratio increased markedly, peaking at 43.79 by March 2024. The initial volatility and subsequent steep rise in the P/E ratio reflect market valuation changes that became less tied to earnings growth as EPS declined, implying that investor expectations or market sentiment were increasingly optimistic despite earnings pressure.
- Overall Financial Insights
- The data portrays an initial phase of strong financial performance and growth, evidenced by rising EPS and share prices up to late 2021. This was followed by a substantive earnings contraction in 2022 and early 2024, with share prices partially recovering amid increasing P/E ratios. The divergence between declining EPS and rising P/E values may point to heightened market valuation metrics or anticipation of future recovery. The share price volatility and fluctuating valuation suggest an environment of uncertainty or shifting investor sentiment during the most recent periods.
Price to Operating Profit (P/OP)
Teradyne Inc., historical P/OP calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Oct 1, 2023 | Jul 2, 2023 | Apr 2, 2023 | Dec 31, 2022 | Oct 2, 2022 | Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 156,111,885 | 153,080,607 | 152,878,728 | 154,013,736 | 155,038,743 | 156,047,868 | 155,756,146 | 156,781,680 | 160,203,017 | 162,417,046 | 163,004,340 | 164,973,199 | 166,266,321 | 166,694,772 | 166,055,827 | 166,032,335 | 165,768,292 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Income from operations (in thousands) | 77,771) | 124,324) | 143,972) | 139,908) | 92,864) | 166,587) | 231,507) | 247,990) | 185,855) | 256,435) | 322,400) | 388,872) | 233,013) | 234,079) | 269,661) | 217,949) | 206,718) | ||||||
| Operating profit per share2 | 3.11 | 3.27 | 3.55 | 4.10 | 4.77 | 5.33 | 5.92 | 6.46 | 7.20 | 7.39 | 7.23 | 6.82 | 5.74 | 5.57 | 5.22 | 4.52 | 4.03 | ||||||
| Share price1, 3 | 120.44 | 102.48 | 87.70 | 107.41 | 92.63 | 100.77 | 84.72 | 100.75 | 105.92 | 111.52 | 144.22 | 126.87 | 128.17 | 132.39 | 89.70 | 90.26 | 58.58 | ||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/OP ratio4 | 38.69 | 31.31 | 24.68 | 26.22 | 19.43 | 18.90 | 14.32 | 15.60 | 14.71 | 15.08 | 19.95 | 18.59 | 22.32 | 23.77 | 17.20 | 19.95 | 14.55 | ||||||
| Benchmarks | |||||||||||||||||||||||
| P/OP Ratio, Competitors5 | |||||||||||||||||||||||
| Advanced Micro Devices Inc. | 400.66 | 675.69 | — | — | 782.37 | 100.42 | 36.08 | 43.60 | 40.92 | 39.48 | 49.04 | 47.29 | 55.06 | — | — | — | — | ||||||
| Analog Devices Inc. | 29.30 | 23.53 | 20.61 | 20.41 | 24.53 | 26.16 | 38.46 | 41.74 | 55.30 | 56.12 | 29.71 | 30.29 | 34.90 | 33.76 | 31.72 | 30.10 | 29.85 | ||||||
| Applied Materials Inc. | 22.03 | 17.58 | 15.53 | 14.65 | 12.26 | 11.35 | 11.57 | 12.68 | 15.55 | 18.85 | 19.43 | 23.98 | 22.70 | 18.50 | 14.76 | 13.85 | 17.50 | ||||||
| Broadcom Inc. | 41.23 | 31.96 | 22.57 | 20.66 | 17.32 | 16.33 | 16.17 | 20.04 | 24.51 | 30.78 | 27.21 | 30.43 | 35.86 | 44.04 | 41.08 | 35.53 | 25.99 | ||||||
| Intel Corp. | 275.84 | 1,984.43 | — | — | — | 49.91 | 14.19 | 10.76 | 8.87 | 10.06 | 9.88 | 10.65 | 11.76 | — | — | — | — | ||||||
| KLA Corp. | 16.45 | 16.99 | 12.79 | 13.23 | 11.55 | 15.36 | 14.02 | 17.40 | 19.37 | 21.69 | 21.76 | 26.27 | 18.82 | — | — | — | — | ||||||
| Lam Research Corp. | 17.56 | 16.79 | 11.92 | 10.68 | 8.94 | 11.79 | 12.15 | 15.75 | 15.79 | 18.34 | 23.20 | 21.56 | 15.98 | — | — | — | — | ||||||
| Micron Technology Inc. | — | — | — | 34.54 | 7.86 | 5.93 | 5.31 | 8.90 | 13.31 | 12.48 | 20.11 | 29.00 | 25.85 | — | — | — | — | ||||||
| NVIDIA Corp. | 213.98 | 136.19 | 63.84 | 46.92 | 47.25 | 66.12 | 93.15 | 71.25 | 70.98 | 75.08 | 82.82 | 84.54 | 62.35 | — | — | — | — | ||||||
| Qualcomm Inc. | 20.09 | 15.85 | 14.36 | 9.90 | 10.47 | 7.95 | 11.41 | 11.80 | 19.06 | 15.84 | 15.54 | 17.26 | 23.79 | 23.32 | 29.96 | 11.05 | 13.01 | ||||||
| Texas Instruments Inc. | 23.82 | 19.75 | 16.15 | 18.24 | 15.69 | 16.29 | 13.69 | 15.53 | 16.30 | 17.67 | 20.89 | 22.42 | 25.48 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).
1 Data adjusted for splits and stock dividends.
2 Q1 2024 Calculation
Operating profit per share
= (Income from operationsQ1 2024
+ Income from operationsQ4 2023
+ Income from operationsQ3 2023
+ Income from operationsQ2 2023)
÷ No. shares of common stock outstanding
= (77,771,000 + 124,324,000 + 143,972,000 + 139,908,000)
÷ 156,111,885 = 3.11
3 Closing price as at the filing date of Teradyne Inc. Quarterly or Annual Report.
4 Q1 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 120.44 ÷ 3.11 = 38.69
5 Click competitor name to see calculations.
- Share Price Trend
- The share price initially demonstrated strong growth, rising from $58.58 in March 2020 to a peak of $144.22 in October 2021. Subsequently, the price saw a decline through 2022, reaching a low of $84.72 in October 2022. Early 2023 marked a period of moderate recovery, with some fluctuations, ending at $120.44 by March 2024. This pattern indicates a volatile but generally upward trend over the four-year period.
- Operating Profit per Share (OPPS)
- Operating profit per share increased steadily from $4.03 in March 2020 to a high of $7.39 in December 2021. Following this peak, there was a consistent decline across 2022 and 2023, falling to $3.11 by March 2024. The data suggests that operating profitability per share reached its zenith in late 2021 before experiencing a notable contraction.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio exhibited considerable variability over the periods analyzed. Starting at 14.55 in March 2020, it rose sharply to a high of 23.77 by December 2020, fluctuated within the 15 to 20 range through 2021 and most of 2022, then increasingly climbed to peak at 38.69 by March 2024. This rising valuation multiple towards the end of the period, despite declining operating profit per share, implies growing market expectations or perceived growth potential not confirmed by operating profit trends.
- Overall Insights
- The concurrent decline in operating profit per share and rise in price to operating profit ratio in the most recent periods highlight a divergence between fundamental profitability and market valuation. While share price has partially recovered from a mid-term trough, the elevated P/OP ratio suggests investors may be pricing in future growth or other factors beyond current operating profitability. The trend of declining operating profits warrants attention for its potential impact on long-term valuation sustainability.
Price to Sales (P/S)
Teradyne Inc., historical P/S calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Oct 1, 2023 | Jul 2, 2023 | Apr 2, 2023 | Dec 31, 2022 | Oct 2, 2022 | Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 156,111,885 | 153,080,607 | 152,878,728 | 154,013,736 | 155,038,743 | 156,047,868 | 155,756,146 | 156,781,680 | 160,203,017 | 162,417,046 | 163,004,340 | 164,973,199 | 166,266,321 | 166,694,772 | 166,055,827 | 166,032,335 | 165,768,292 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Revenues (in thousands) | 599,819) | 670,600) | 703,732) | 684,437) | 617,529) | 731,836) | 827,073) | 840,766) | 755,370) | 885,046) | 950,501) | 1,085,728) | 781,606) | 758,969) | 819,484) | 838,661) | 704,355) | ||||||
| Sales per share2 | 17.03 | 17.48 | 17.91 | 18.58 | 19.46 | 20.22 | 21.24 | 21.89 | 22.95 | 22.80 | 21.94 | 20.89 | 19.24 | 18.73 | 18.17 | 16.74 | 15.11 | ||||||
| Share price1, 3 | 120.44 | 102.48 | 87.70 | 107.41 | 92.63 | 100.77 | 84.72 | 100.75 | 105.92 | 111.52 | 144.22 | 126.87 | 128.17 | 132.39 | 89.70 | 90.26 | 58.58 | ||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/S ratio4 | 7.07 | 5.86 | 4.90 | 5.78 | 4.76 | 4.98 | 3.99 | 4.60 | 4.62 | 4.89 | 6.57 | 6.07 | 6.66 | 7.07 | 4.94 | 5.39 | 3.88 | ||||||
| Benchmarks | |||||||||||||||||||||||
| P/S Ratio, Competitors5 | |||||||||||||||||||||||
| Advanced Micro Devices Inc. | 10.23 | 11.95 | 7.89 | 8.08 | 5.70 | 5.38 | 4.14 | 7.34 | 8.54 | 8.76 | 9.94 | 8.90 | 8.94 | — | — | — | — | ||||||
| Analog Devices Inc. | 8.30 | 7.31 | 6.89 | 6.75 | 7.89 | 7.14 | 7.88 | 8.52 | 10.43 | 12.98 | 9.38 | 9.11 | 10.06 | 9.03 | 7.90 | 7.61 | 7.93 | ||||||
| Applied Materials Inc. | 6.36 | 5.08 | 4.49 | 4.29 | 3.63 | 3.43 | 3.59 | 4.03 | 4.88 | 5.63 | 5.53 | 6.35 | 5.74 | 4.69 | 3.58 | 3.27 | 4.06 | ||||||
| Broadcom Inc. | 15.05 | 14.46 | 10.15 | 9.33 | 7.66 | 7.00 | 6.54 | 7.49 | 8.42 | 9.55 | 7.66 | 7.56 | 7.46 | 7.40 | 6.27 | 5.28 | 4.13 | ||||||
| Intel Corp. | 2.46 | 3.40 | 2.83 | 2.85 | 2.30 | 1.85 | 1.73 | 2.03 | 2.29 | 2.48 | 2.56 | 2.77 | 3.08 | — | — | — | — | ||||||
| KLA Corp. | 6.12 | 6.47 | 4.99 | 5.28 | 4.62 | 6.09 | 5.51 | 6.77 | 7.22 | 7.80 | 7.49 | 7.46 | 5.13 | — | — | — | — | ||||||
| Lam Research Corp. | 4.99 | 4.99 | 3.66 | 3.39 | 2.83 | 3.68 | 3.79 | 4.98 | 4.91 | 5.62 | 6.86 | 6.18 | 4.48 | — | — | — | — | ||||||
| Micron Technology Inc. | 5.83 | 4.94 | 3.88 | 3.02 | 1.99 | 1.87 | 1.83 | 2.84 | 3.62 | 2.83 | 3.54 | 4.41 | 3.93 | — | — | — | — | ||||||
| NVIDIA Corp. | 37.18 | 21.33 | 13.27 | 12.64 | 15.92 | 24.67 | 32.92 | 23.77 | 20.32 | 20.41 | 22.50 | 22.93 | 18.34 | — | — | — | — | ||||||
| Qualcomm Inc. | 4.57 | 3.45 | 3.74 | 3.06 | 3.53 | 2.85 | 4.09 | 3.85 | 5.89 | 4.62 | 4.93 | 5.24 | 6.91 | 6.20 | 5.25 | 3.59 | 4.24 | ||||||
| Texas Instruments Inc. | 9.47 | 8.26 | 7.11 | 8.49 | 7.65 | 8.25 | 7.10 | 8.00 | 8.24 | 8.63 | 9.82 | 10.13 | 10.89 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).
1 Data adjusted for splits and stock dividends.
2 Q1 2024 Calculation
Sales per share
= (RevenuesQ1 2024
+ RevenuesQ4 2023
+ RevenuesQ3 2023
+ RevenuesQ2 2023)
÷ No. shares of common stock outstanding
= (599,819,000 + 670,600,000 + 703,732,000 + 684,437,000)
÷ 156,111,885 = 17.03
3 Closing price as at the filing date of Teradyne Inc. Quarterly or Annual Report.
4 Q1 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 120.44 ÷ 17.03 = 7.07
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited significant volatility over the analyzed quarters. Starting at $58.58, it rose sharply to a peak of $144.22 by October 2021. Following this peak, the price declined notably to a low of $84.72 in October 2022. Subsequently, the price partially recovered, fluctuating between approximately $87.70 and $120.44 by March 2024. This indicates a period of rapid growth followed by correction and then moderate recovery.
- Sales per Share Trend
- Sales per share demonstrated a generally upward trajectory from $15.11 to $22.95 between March 2020 and April 2022. After this peak, sales per share experienced a gradual decline through to March 2024, settling at $17.03. The rise in sales per share initially reflects growing revenue or operational efficiency, but the subsequent decrease may suggest challenges in maintaining revenue growth or market conditions impacting sales performance.
- Price-to-Sales (P/S) Ratio Analysis
- The price-to-sales ratio showed considerable fluctuations throughout the observed periods. It increased from 3.88 in March 2020 to a peak of 7.07 twice—in December 2020 and again by March 2024—indicating heightened market valuation relative to sales at these points. Between these peaks, the ratio experienced declines and some rebounds, with the lowest point around 3.99 in October 2022. These variations suggest changing investor sentiment and market expectations relative to the company’s sales performance.
- Overall Insights
- The data reveals an initial phase of strong market confidence and growth both in share price and sales per share, peaking around late 2021 and early 2022. Subsequently, there was a period of correction with declines in both share price and sales per share, although the share price's recovery towards early 2024 outpaced the recovery in sales per share. The P/S ratio's volatility indicates fluctuating valuation dynamics, reflecting shifts in market perception regarding revenue generation and growth prospects.
Price to Book Value (P/BV)
Teradyne Inc., historical P/BV calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Oct 1, 2023 | Jul 2, 2023 | Apr 2, 2023 | Dec 31, 2022 | Oct 2, 2022 | Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 156,111,885 | 153,080,607 | 152,878,728 | 154,013,736 | 155,038,743 | 156,047,868 | 155,756,146 | 156,781,680 | 160,203,017 | 162,417,046 | 163,004,340 | 164,973,199 | 166,266,321 | 166,694,772 | 166,055,827 | 166,032,335 | 165,768,292 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Shareholders’ equity (in thousands) | 2,557,829) | 2,525,897) | 2,441,300) | 2,434,883) | 2,449,462) | 2,451,294) | 2,254,125) | 2,298,596) | 2,474,532) | 2,562,444) | 2,537,493) | 2,493,256) | 2,324,553) | 2,207,018) | 1,993,544) | 1,744,551) | 1,550,673) | ||||||
| Book value per share (BVPS)2 | 16.38 | 16.50 | 15.97 | 15.81 | 15.80 | 15.71 | 14.47 | 14.66 | 15.45 | 15.78 | 15.57 | 15.11 | 13.98 | 13.24 | 12.01 | 10.51 | 9.35 | ||||||
| Share price1, 3 | 120.44 | 102.48 | 87.70 | 107.41 | 92.63 | 100.77 | 84.72 | 100.75 | 105.92 | 111.52 | 144.22 | 126.87 | 128.17 | 132.39 | 89.70 | 90.26 | 58.58 | ||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/BV ratio4 | 7.35 | 6.21 | 5.49 | 6.79 | 5.86 | 6.41 | 5.85 | 6.87 | 6.86 | 7.07 | 9.26 | 8.39 | 9.17 | 10.00 | 7.47 | 8.59 | 6.26 | ||||||
| Benchmarks | |||||||||||||||||||||||
| P/BV Ratio, Competitors5 | |||||||||||||||||||||||
| Advanced Micro Devices Inc. | 4.15 | 4.85 | 3.18 | 3.20 | 2.40 | 2.32 | 1.73 | 2.87 | 2.91 | 19.21 | 20.69 | 16.81 | 15.76 | — | — | — | — | ||||||
| Analog Devices Inc. | 2.70 | 2.53 | 2.46 | 2.41 | 2.72 | 2.35 | 2.39 | 2.24 | 2.35 | 2.50 | 4.98 | 4.64 | 4.88 | 4.22 | 3.70 | 3.64 | 3.90 | ||||||
| Applied Materials Inc. | 9.67 | 8.23 | 7.90 | 8.09 | 7.11 | 7.25 | 7.48 | 8.65 | 9.91 | 10.60 | 9.92 | 10.50 | 9.11 | 7.63 | 6.09 | 5.59 | 7.04 | ||||||
| Broadcom Inc. | 8.32 | 21.59 | 16.31 | 14.86 | 11.31 | 10.23 | 9.93 | 10.71 | 10.45 | 10.50 | 8.35 | 8.07 | 7.68 | 7.40 | 6.18 | 5.04 | 3.84 | ||||||
| Intel Corp. | 1.28 | 1.75 | 1.47 | 1.53 | 1.32 | 1.15 | 1.20 | 1.47 | 1.73 | 2.05 | 2.23 | 2.52 | 3.00 | — | — | — | — | ||||||
| KLA Corp. | 20.82 | 23.25 | 19.77 | 21.24 | 21.67 | 40.05 | 11.68 | 13.65 | 13.95 | 15.98 | 15.52 | 15.44 | 11.09 | — | — | — | — | ||||||
| Lam Research Corp. | 9.82 | 10.58 | 8.22 | 7.78 | 6.88 | 10.10 | 10.52 | 12.70 | 13.28 | 13.64 | 16.94 | 13.40 | 9.14 | — | — | — | — | ||||||
| Micron Technology Inc. | 2.20 | 1.74 | 1.55 | 1.47 | 1.09 | 1.15 | 1.20 | 1.85 | 2.33 | 1.79 | 2.13 | 2.55 | 2.17 | — | — | — | — | ||||||
| NVIDIA Corp. | 39.24 | 26.03 | 17.76 | 15.75 | 17.87 | 24.95 | 33.57 | 24.61 | 20.84 | 20.14 | 21.69 | 21.53 | 16.49 | — | — | — | — | ||||||
| Qualcomm Inc. | 7.19 | 5.72 | 6.98 | 6.38 | 8.05 | 7.00 | 10.74 | 11.35 | 18.72 | 15.59 | 19.65 | 20.75 | 24.98 | 24.00 | 31.75 | 29.17 | 23.03 | ||||||
| Texas Instruments Inc. | 9.37 | 8.57 | 7.74 | 10.03 | 9.79 | 11.33 | 9.88 | 11.12 | 11.14 | 11.87 | 14.22 | 15.22 | 16.52 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).
1 Data adjusted for splits and stock dividends.
2 Q1 2024 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 2,557,829,000 ÷ 156,111,885 = 16.38
3 Closing price as at the filing date of Teradyne Inc. Quarterly or Annual Report.
4 Q1 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 120.44 ÷ 16.38 = 7.35
5 Click competitor name to see calculations.
The analysis of the quarterly financial metrics shows distinct trends in the share price, book value per share (BVPS), and price-to-book value (P/BV) ratio over the examined periods.
- Share Price
- The share price demonstrated substantial volatility across the quarters. Initially, there was a significant rise from $58.58 to a peak of around $144.22 within the period from March 2020 to October 2021. Subsequently, the share price experienced a decline, reaching a low near $84.72 by October 2022. Following that trough, a recovery trend is evident, culminating in a price of $120.44 by the end of March 2024. The movements suggest periods of strong market optimism followed by corrective adjustments and subsequent renewed investor confidence.
- Book Value per Share (BVPS)
- The BVPS showed a steady and gradual upward trend throughout the analysis period. Starting at $9.35 in March 2020, the book value increased consistently with minor fluctuations, peaking around $16.5 in December 2023 before slightly adjusting to $16.38 by March 2024. This consistent increase indicates ongoing growth in net asset value on a per-share basis, reflecting positive accumulation in shareholders’ equity.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio displayed notable fluctuations, reflecting changing market valuations relative to book value. The ratio began at 6.26 and peaked at 10.00 during December 2020, correlating with the sharp rise in share price relative to steady BVPS growth. Afterwards, the ratio trended downward, reaching a minimum of approximately 5.49 in October 2023, coinciding with the share price correction phase. By March 2024, the ratio rose again to 7.35, indicating renewed market valuation strength in relation to book value.
Overall, the data reveals that while the underlying book value per share increased steadily, market pricing experienced significant volatility. The elevated P/BV ratios in certain quarters indicate periods when investor expectations and market sentiment drove the share price well above the intrinsic book value. Alternatively, periods of contraction in this ratio align with market reticence or corrections. The recovery in share price and P/BV towards the end of the timeline suggest regained market confidence aligning with the company’s improving equity base.