Is Teradata Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Teradata Corp. has moved from expensive to attractive, indicating a shift towards a more favorable assessment of its value. The company appears undervalued, supported by key ratios such as a P/E ratio of 15, an EV to EBITDA of 7.13, and a PEG ratio of 0.09, all suggesting that the stock is trading at a discount relative to its earnings growth potential.
When compared to peers, Teradata's P/E ratio of 15 is significantly lower than Duolingo, Inc.'s P/E of 104.90, while its EV to EBITDA of 7.13 is more favorable than the industry average. Additionally, Qualys, Inc. has a P/E of 25.97, further illustrating Teradata's relative undervaluation. Despite recent stock performance showing a decline of 35.81% over the past year compared to a 14.08% increase in the S&P 500, the current valuation metrics suggest that Teradata presents an attractive investment opportunity moving forward.