Is Teradyne, Inc. overvalued or undervalued?

As of 29 July 2025, the valuation grade for Teradyne, Inc. moved from very attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time. Key valuation ratios include a P/E ratio of 23, an EV to EBITDA of 18.01, and a PEG ratio of 0.64, which suggest that while the company is not undervalued, it is also not significantly overvalued compared to its current market position.
In comparison to peers, Teradyne's P/E ratio of 23 is higher than Flex Ltd.'s attractive P/E of 22.53, while its EV to EBITDA of 18.01 is also above the industry average. Despite these metrics, Teradyne's PEG ratio of 0.64 indicates potential for growth relative to its price. Over the past year, Teradyne has underperformed the S&P 500, with a return of -7.07% compared to the index's 17.14%, reinforcing the notion that the stock is fairly valued in light of its recent performance.