Discounted Cash Flow

Teradyne, Inc.

TER · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $1.8b $-43.4m $360.5m -2.5% $-0.21
2017 $2.1b (21.9%) $257.7m (693.5%) $521.1m (44.5%) 12.1% (587.0%) $1.30 (719.0%)
2018 $2.1b (-1.7%) $451.8m (75.3%) $362.5m (-30.4%) 21.5% (78.3%) $2.41 (85.4%)
2019 $2.3b (9.2%) $467.5m (3.5%) $444.1m (22.5%) 20.4% (-5.3%) $2.74 (13.7%)
2020 $3.1b (36.0%) $784.1m (67.7%) $684.0m (54.0%) 25.1% (23.3%) $4.72 (72.3%)
2021 $3.7b (18.6%) $1.0b (29.4%) $965.9m (41.2%) 27.4% (9.1%) $6.15 (30.3%)
2022 $3.2b (-14.8%) $715.5m (-29.5%) $414.7m (-57.1%) 22.7% (-17.2%) $4.52 (-26.5%)
2023 $2.7b (-15.2%) $448.8m (-37.3%) $425.6m (2.6%) 16.8% (-26.1%) $2.91 (-35.6%)
2024 $2.8b (5.4%) $542.4m (20.9%) $474.1m (11.4%) 19.2% (14.7%) $3.41 (17.2%)
2025 $3.2b (13.1%) $554.0m (2.2%) $450.4m (-5.0%) 17.4% (-9.7%) $3.48 (2.1%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model