TeradyneXSWX:TER 72 Return-on-Tangible-Asset is 42.65% as of Mar. 2026, which is 142% above its 10-year median of 17.64. GuruFocus rates XSWX:TER with a GF Score™ of 72/100 and a GF Value™ of CHF163.31. The stock has 4 warning signs investors should review. Among 1,026 Semiconductors companies, Teradyne ranks better than 96.39% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Teradyne's annualizedNet Income for the quarter that ended in Mar. 2026 was CHF1,596 Mil. Teradyne's average total tangible assets for the quarter that ended in Mar. 2026 was CHF3,741 Mil. Therefore, Teradyne's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 42.65%.
The historical rank and industry rank for Teradyne's Return-on-Tangible-Asset or its related term are showing as below:
XSWX:TER'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -2.04 Med: 17.64 Max: 31.68
Current: 24.64
During the past 13 years, Teradyne's highest Return-on-Tangible-Asset was 31.68%. The lowest was -2.04%. And the median was 17.64%.
XSWX:TER's Return-on-Tangible-Asset is ranked better than 96.39% of 1026
companies
in the Semiconductors industry
Industry Median: 2.59
vs XSWX:TER: 24.64
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Teradyne Return-on-Tangible-Asset Related Terms
Teradyne Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Teradyne's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Semiconductor Equipment & Materials subindustry, Teradyne's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Teradyne Return-on-Tangible-Asset vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Teradyne's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Teradyne's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 42.65% mean?
Teradyne (XSWX:TER) has a Return-on-Tangible-Asset of 42.65% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Teradyne and its competitors. This is 142% above median its historical median of 17.64. According to the industry distribution chart, Teradyne ranks #37 out of 1026 companies in the Semiconductors industry, placing it in the top 3.6%.
Is Teradyne's Return-on-Tangible-Asset too high?
Teradyne's current Return-on-Tangible-Asset of 42.65% is 142% above median its 10-year median of 17.64. The Semiconductors industry median Return-on-Tangible-Asset is 2.59. Teradyne's value of 42.65% is 1546.7% above this industry median. Based on the distribution chart, Teradyne ranks #37 out of 1026 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Teradyne has a GF Score™ of 72/100, reflecting its overall financial health beyond just this single metric.
How does Teradyne's Return-on-Tangible-Asset compare to ?
According to the Semiconductors industry distribution chart, Teradyne ranks #37 out of 1026 companies for Return-on-Tangible-Asset. This places Teradyne in the top 4% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.59. Teradyne's value of 42.65% is 1546.7% above this benchmark. While the company's 10-year median is 17.64 vs. the industry median of 2.59, Teradyne has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Semiconductors company?
The median Return-on-Tangible-Asset among Semiconductors companies is 2.59, based on 1,026 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Teradyne's current Return-on-Tangible-Asset of 42.65% is 1546.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Teradyne and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Asset is 2.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Teradyne's current Return-on-Tangible-Asset is 42.65%, which is 142% above median its own 10-year median of 17.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Teradyne stock overvalued right now?
Teradyne (XSWX:TER) has a current Return-on-Tangible-Asset of 42.65%. The stock's GF Value™ is CHF163.31, compared to a current price of CHF310.80 — trading 90.3% above its estimated fair value. The current Return-on-Tangible-Asset is 42.65%, which is 142% above median its 10-year median of 17.64 and 1546.7% above the Semiconductors industry median of 2.59. Teradyne's overall GF Score™ is 72/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Teradyne (XSWX:TER), the current Return-on-Tangible-Asset is 42.65% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Teradyne (XSWX:TER) Overvalued in 2026?
Based on GuruFocus' analysis, Teradyne stock appears to be overvalued.
The current stock price of CHF310.80 is trading 90.3% above its estimated GF Value™ of CHF163.31.
Key valuation signals for XSWX:TER:
Return-on-Tangible-Asset: 42.65% (142% above median its 10-year median of 17.64)
GF Value™: CHF163.31 vs. price of CHF310.80 (90.3% above fair value)
Industry Position: 1546.7% above the Semiconductors median (#37 of 1026)
No single metric tells the full story. See the XSWX:TER stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Teradyne provides testing equipment, including automated test equipment for semiconductors, system testing for hard disk drives, circuit boards, and electronics systems, and wireless testing for devices. The firm entered the industrial automation market in 2015 and sells collaborative and autonomous robots for factory applications. Teradyne serves numerous end markets and geographies, directly and indirectly, through its products, but its most significant exposure is to semiconductor testing. Teradyne serves vertically integrated, fabless, and foundry chipmakers with its equipment.
72GF Score
Get the complete analysis for XSWX:TER
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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