Is Teradata Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Teradata Corp. moved from expensive to attractive, indicating a shift towards a more favorable assessment. Based on the current metrics, Teradata appears undervalued, particularly with a P/E ratio of 15, an EV to EBITDA of 7.13, and an impressive PEG ratio of 0.09, which suggests strong growth potential relative to its price.
When compared to peers, Teradata's P/E ratio is significantly lower than Duolingo, Inc. at 104.90 and Informatica, Inc. at 1253.77, while it is more favorable than Qualys, Inc. at 25.97. Additionally, Teradata's ROCE of 70.00% and ROE of 91.36% highlight its efficient use of capital compared to its industry counterparts. Despite recent stock performance lagging behind the S&P 500, with a YTD return of -33.35% versus the S&P 500's 13.30%, the valuation metrics suggest that Teradata may present a compelling investment opportunity moving forward.