TeradyneMEX:TER 62 Return-on-Tangible-Equity is 66.47% as of Mar. 2026, which is 127% above its 10-year median of 29.23. GuruFocus rates MEX:TER with a GF Score™ of 62/100 and a GF Value™ of MXN3,329.08 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 985 Semiconductors companies, Teradyne ranks better than 92.99% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Teradyne's annualized net income for the quarter that ended in Mar. 2026 was MXN28,774 Mil. Teradyne's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN43,286 Mil. Therefore, Teradyne's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 66.47%.
The historical rank and industry rank for Teradyne's Return-on-Tangible-Equity or its related term are showing as below:
MEX:TER'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -3.17 Med: 29.23 Max: 60.45
Current: 36.89
During the past 13 years, Teradyne's highest Return-on-Tangible-Equity was 60.45%. The lowest was -3.17%. And the median was 29.23%.
MEX:TER's Return-on-Tangible-Equity is ranked better than 92.99% of 985
companies
in the Semiconductors industry
Industry Median: 5.19
vs MEX:TER: 36.89
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Teradyne Return-on-Tangible-Equity Related Terms
Teradyne Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Teradyne's Return-on-Tangible-Equity 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.
MEX:TER vs Q, ENTG, AMKR: Return-on-Tangible-Equity Comparison
For the Semiconductor Equipment & Materials subindustry, Teradyne's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Teradyne's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Teradyne's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 66.47% mean?
Teradyne (MEX:TER) has a Return-on-Tangible-Equity of 66.47% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Teradyne and its competitors. This is 127% above median its historical median of 29.23. According to the industry distribution chart, Teradyne ranks #69 out of 985 companies in the Semiconductors industry, placing it in the top 7%.
Is Teradyne's Return-on-Tangible-Equity too high?
Teradyne's current Return-on-Tangible-Equity of 66.47% is 127% above median its 10-year median of 29.23. The Semiconductors industry median Return-on-Tangible-Equity is 5.19. Teradyne's value of 66.47% is 1180.7% above this industry median. Based on the distribution chart, Teradyne ranks #69 out of 985 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Teradyne has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Teradyne's Return-on-Tangible-Equity compare to Q and ENTG?
According to the Semiconductors industry distribution chart, Teradyne ranks #69 out of 985 companies for Return-on-Tangible-Equity. This places Teradyne in the top 7% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.19. Teradyne's value of 66.47% is 1180.7% above this benchmark. While the company's 10-year median is 29.23 vs. the industry median of 5.19, 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-Equity for a Semiconductors company?
The median Return-on-Tangible-Equity among Semiconductors companies is 5.19, based on 985 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Teradyne's current Return-on-Tangible-Equity of 66.47% is 1180.7% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Teradyne and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Equity is 5.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Teradyne's current Return-on-Tangible-Equity is 66.47%, which is 127% above median its own 10-year median of 29.23. 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?
Based on GuruFocus' analysis, Teradyne (MEX:TER) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN3,329.08, compared to a current price of MXN8,433.00 — trading 153.3% above its estimated fair value. The current Return-on-Tangible-Equity is 66.47%, which is 127% above median its 10-year median of 29.23 and 1180.7% above the Semiconductors industry median of 5.19. Teradyne's overall GF Score™ is 62/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Teradyne (MEX:TER), the current Return-on-Tangible-Equity is 66.47% 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 (MEX:TER) Overvalued in 2026?
Based on GuruFocus' analysis, Teradyne stock appears to be overvalued.
The current stock price of MXN8,433.00 is trading 153.3% above its estimated GF Value™ of MXN3,329.08.
GuruFocus considers Teradyne to be Significantly Overvalued.
Key valuation signals for MEX:TER:
Return-on-Tangible-Equity: 66.47% (127% above median its 10-year median of 29.23)
GF Value™: MXN3,329.08 vs. price of MXN8,433.00 (153.3% above fair value)
Industry Position: 1180.7% above the Semiconductors median (#69 of 985)
No single metric tells the full story. See the MEX: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.
62GF Score
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