Question 1

What is Teradyne's P/FCF ratio?

Accepted Answer

Teradyne (TER) P/FCF ratio is 102.0× as of June 5, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month free cash flow, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/FCF ratio calculated?

Accepted Answer

P/FCF = Market Capitalisation ÷ Trailing Twelve-Month (TTM) Free Cash Flow, where Free Cash Flow = Operating Cash Flow − Capital Expenditures. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the P/FCF ratio?

Accepted Answer

The price-to-free-cash-flow (P/FCF) ratio compares a company's market capitalisation to its trailing twelve-month (TTM) free cash flow. It is calculated as market cap ÷ TTM free cash flow, where free cash flow = operating cash flow − capital expenditures. Because FCF cannot be inflated by non-cash accounting items, P/FCF is often considered a cleaner measure of "earnings-power valuation" than P/E — especially for capital-intensive businesses where depreciation diverges from real cash outflows.

Question 4

What is a good P/FCF ratio for Teradyne?

Accepted Answer

Mature companies that consistently convert profit into cash often trade at 15–25× P/FCF; capital-intensive businesses with lumpy capex typically trade lower. Compare against sector peers and against the company's own multi-year average — single-year P/FCF can be distorted by working-capital swings. For Teradyne specifically, the relevant sector benchmark is the current sector median of 21.6×.

Question 5

Is Teradyne's P/FCF ratio high or low?

Accepted Answer

Teradyne's P/FCF ratio of 102.0× is above its own 5-year average of 37.7× and above the sector median of 21.6×. That places the current reading at the 95th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is Teradyne's historical P/FCF ratio range?

Accepted Answer

In the available daily series, Teradyne (TER) P/FCF ratio has ranged from a low of 5.1× in 2010 to a high of 1478.9× in 2003. The 5-year average is 37.7× and the 5-year median is 38.0×.

Question 7

What was Teradyne's P/FCF ratio in 2025?

Accepted Answer

Teradyne (TER) P/FCF ratio at the end of 2025 was 67.2×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month free cash flow figure available at that date.

Question 8

Why does Teradyne's P/FCF ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (free cash flow). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2025	$30.28B	$450.40M	67.2×	+24.1×	Dec 31, 2025
2024	$20.46B	$474.08M	43.2×	+4.2×	Dec 31, 2024
2023	$16.58B	$425.59M	39.0×	+6.2×	Dec 31, 2023
2022	$13.61B	$414.67M	32.8×	+5.3×	Dec 31, 2022
2021	$26.62B	$965.89M	27.6×	-1.6×	Dec 31, 2021
2020	$19.91B	$683.96M	29.1×	+3.4×	Dec 31, 2020
2019	$11.41B	$444.11M	25.7×	+10.2×	Dec 31, 2019
2018	$5.62B	$362.50M	15.5×	-0.2×	Dec 31, 2018
2017	$8.17B	$521.12M	15.7×	+1.5×	Dec 31, 2017
2016	$5.10B	$360.53M	14.1×	+1.0×	Dec 31, 2016
2015	$4.24B	$323.46M	13.1×	-0.1×	Dec 31, 2015
2014	$4.29B	$325.46M	13.2×	-7.9×	Dec 31, 2014
2013	$3.37B	$160.53M	21.0×	+9.9×	Dec 31, 2013
2012	$3.17B	$285.45M	11.1×	—	Dec 31, 2012
2011	—	$187.67M	—	—	Dec 31, 2011
2010	$2.59B	$490.75M	5.3×	-18.6×	Dec 31, 2010
2009	$1.90B	$79.39M	23.9×	+14.5×	Dec 31, 2009
2008	$714.02M	$75.93M	9.4×	-63.9×	Dec 31, 2008
2007	$1.80B	$24.50M	73.3×	+65.0×	Dec 31, 2007
2006	$2.83B	$339.67M	8.3×	—	Dec 31, 2006
2005	$2.89B	−$198.27M	—	—	Dec 31, 2005
2004	$3.34B	$89.58M	37.3×	-1441.6×	Dec 31, 2004
2003	$4.93B	$3.34M	1478.9×	—	Dec 31, 2003
2002	$2.38B	−$50.68M	—	—	Dec 31, 2002
2001	$5.40B	−$277.15M	—	—	Dec 31, 2001


Intuit (INTU)	13.9×
Okta (OKTA)	13.8×
EPAM Systems (EPAM)	13.4×
Zebra Technologies (ZBRA)	12.2×
Skyworks Solutions (SWKS)	11.9×
Cognizant (CTSH)	11.8×
NetApp (NTAP)	11.5×
Duolingo (DUOL)	11.1×
Block (XYZ)	11.0×
QUALCOMM (QCOM)	10.8×
Workday (WDAY)	10.5×
Salesforce (CRM)	10.5×
Qorvo (QRVO)	10.4×
Adobe (ADBE)	10.4×
Accenture (ACN)	10.3×
Fidelity National Information Services (FIS)	8.7×
DocuSign (DOCU)	8.0×
Gen Digital (GEN)	7.5×
Fiserv (FISV)	7.2×
Hewlett Packard Enterprise (HPE)	6.8×
GoDaddy (GDDY)	6.7×
Science Applications International (SAIC)	6.7×
Strategy (MSTR)	5.5×
HP (HPQ)	5.1×
Lyft (LYFT)	4.5×

P/FCF Ratio for Teradyne (TER)

P/FCF Ratio daily chart for Teradyne (TER)

Historical P/FCF Ratio for Teradyne (TER) from 2001 to 2025

About P/FCF Ratio at Teradyne (TER)

Teradyne P/FCF Ratio by Year

Teradyne P/FCF Ratio 2025: 67.2×

Teradyne P/FCF Ratio 2024: 43.2×

Teradyne P/FCF Ratio 2023: 39.0×

Teradyne P/FCF Ratio 2022: 32.8×

Teradyne P/FCF Ratio 2021: 27.6×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

Teradyne (TER) Key Financials

P/FCF Ratio daily chart for Teradyne (TER)

Historical P/FCF Ratio for Teradyne (TER) from 2001 to 2025

About P/FCF Ratio at Teradyne (TER)

Teradyne P/FCF Ratio by Year

Teradyne P/FCF Ratio 2025: 67.2×

Teradyne P/FCF Ratio 2024: 43.2×

Teradyne P/FCF Ratio 2023: 39.0×

Teradyne P/FCF Ratio 2022: 32.8×

Teradyne P/FCF Ratio 2021: 27.6×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

+What is Teradyne's P/FCF ratio?

+How is the P/FCF ratio calculated?

+What is the P/FCF ratio?

+What is a good P/FCF ratio for Teradyne?

+Is Teradyne's P/FCF ratio high or low?

+What is Teradyne's historical P/FCF ratio range?

+What was Teradyne's P/FCF ratio in 2025?

+Why does Teradyne's P/FCF ratio change over time?

Teradyne (TER) Key Financials