Is Teradata Corp. overvalued or undervalued?

As of 5 August 2025, the valuation grade for Teradata Corp. has moved from very attractive to attractive, indicating a slight decline in perceived value. The company appears to be overvalued based on its current metrics, particularly when compared to its peers. Key valuation ratios include a P/E ratio of 15, an EV to EBITDA of 7.13, and a PEG ratio of 0.09, which suggest that while the company has strong profitability metrics, its valuation relative to growth expectations is high.
In comparison to peers, Teradata's P/E ratio of 15 is significantly lower than Duolingo, Inc.'s P/E of 104.90 and Informatica, Inc.'s P/E of 1253.77, indicating that Teradata may be undervalued relative to these companies despite its attractive valuation grade. However, when looking at the broader market, Teradata's stock has underperformed against the S&P 500, with a year-to-date return of -28.70% compared to the S&P 500's 12.22%, reinforcing the notion that the stock may be overvalued in the current market context.