Stock Analysis on Net
Stock Analysis on Net

Teradyne Inc. (NASDAQ:TER)

This company has been moved to the archive! The financial data has not been updated since May 3, 2024.

Price to FCFE (P/FCFE) 

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Free Cash Flow to Equity (FCFE)

Teradyne Inc., FCFE calculation

US$ in thousands

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12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income 448,752 715,501 1,014,589 784,147 467,468
Net noncash charges 146,117 135,006 182,543 154,167 162,992
Changes in operating assets and liabilities, net of businesses acquired (9,638) (272,584) (98,766) (69,379) (51,710)
Net cash provided by operating activities 585,231 577,923 1,098,366 868,935 578,750
Purchases of property, plant and equipment (159,642) (163,249) (132,472) (184,977) (134,642)
Payments of convertible debt principal (50,264) (66,759) (342,990) — —
Free cash flow to equity (FCFE) 375,325 347,915 622,904 683,958 444,108

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).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Teradyne Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Teradyne Inc. FCFE decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Price to FCFE Ratio, Current

Teradyne Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 156,111,885
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands) 375,325
FCFE per share 2.40
Current share price (P) 120.44
Valuation Ratio
P/FCFE 50.10
Benchmarks
P/FCFE, Competitors1
Advanced Micro Devices Inc. 210.05
Analog Devices Inc. 27.82
Applied Materials Inc. 20.13
Broadcom Inc. 48.67
First Solar Inc. —
Intel Corp. —
KLA Corp. 23.78
Lam Research Corp. 24.70
Micron Technology Inc. —
NVIDIA Corp. 138.60
Qualcomm Inc. 18.69
Texas Instruments Inc. 50.95
P/FCFE, Sector
Semiconductors & Semiconductor Equipment 121.18
P/FCFE, Industry
Information Technology 51.91

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

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Price to FCFE Ratio, Historical

Teradyne Inc., historical P/FCFE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 153,080,607 156,047,868 162,417,046 166,694,772 166,784,497
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)2 375,325 347,915 622,904 683,958 444,108
FCFE per share3 2.45 2.23 3.84 4.10 2.66
Share price1, 4 102.48 100.77 111.52 132.39 60.49
Valuation Ratio
P/FCFE5 41.80 45.20 29.08 32.27 22.72
Benchmarks
P/FCFE, Competitors6
Advanced Micro Devices Inc. 241.70 33.46 44.72 133.51 —
Analog Devices Inc. 22.28 24.14 34.67 33.98 37.52
Applied Materials Inc. 17.53 19.17 27.20 23.21 19.53
Broadcom Inc. 30.06 14.62 22.35 9.16 5.64
First Solar Inc. — 61.91 — — —
Intel Corp. — — 14.25 8.57 16.55
KLA Corp. 26.78 9.01 28.05 19.15 9.84
Lam Research Corp. 18.67 24.95 34.58 16.89 6.14
Micron Technology Inc. — 18.66 37.24 81.71 13.92
NVIDIA Corp. 151.07 54.83 35.22 44.24 30.15
Qualcomm Inc. 11.97 19.13 17.93 34.91 16.39
Texas Instruments Inc. 37.61 23.88 21.87 24.10 18.77
P/FCFE, Sector
Semiconductors & Semiconductor Equipment 48.29 29.17 25.08 17.87 14.27
P/FCFE, Industry
Information Technology 33.47 26.69 27.52 23.46 19.14

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 See details »

3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 375,325,000 ÷ 153,080,607 = 2.45

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

5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 102.48 ÷ 2.45 = 41.80

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Teradyne Inc. P/FCFE ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.