Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 0.2% dividend yield, Teradyne, Inc. has a fair value of $160.16 based on NTM EPS (FY2026) of $6.41. The current PEG ratio is 1.06.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 44.5% |
| Dividend Yield | +0.2% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $6.41 |
| Fair Value | $160.16 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $3.48 | — | — |
| FY2026E | $6.41 | +84.1% | 13 |
| FY2027E | $8.51 | +32.9% | 14 |
| FY2028E | $10.50 | +23.3% | 9 |
3Y Forward EPS CAGR: 44.5%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.0B | $5.53 | — |
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.
| FY2022 | $715.5M | $4.22 | -23.7% |
| FY2023 | $448.8M | $2.73 | -35.3% |
| FY2024 | $542.4M | $3.32 | +21.6% |
| FY2025 | $554.0M | $3.48 | +4.8% |
4Y Historical EPS CAGR: -10.9%