* Note: Prices are in Million (M) USD.
Description:
Teradata Corporation is a provider of hybrid cloud analytics software. The company is headquartered in San Diego, California.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $493 M
Debt : $508 M
EBITDA : $288 M
Net Debt (Debt - Cash): $15 M
Since Net Debt is covered by EBITDA within 1 year, 3 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Data storage
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 9.81
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Error: Invalid cash flow data provided.Using default values for calculation.
Based on default values, 1 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-12-31): $1,663 M
Revenue 5 Years Ago (2020-12-31): $1,836 M
Total Growth over 5 Years: -9.4%
5-Year Revenue CAGR (Historical): -2.0%
Forward 5-Year CAGR (Tapered): -1.8%
Since historical Revenue CAGR is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-12-31): $97 M
Share Count 5 Years Ago (2021-12-31): $113 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.81
Trailing 12-Month Earnings Per Share (EPS): $2.63
Average Earnings Per Share (EPS): $2.72
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 24.5%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $26.67
52-Week Low: $18.43
Threshold Price (15% Above 52-Week Low): $21.19
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $2,648 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 24 points to above Teradata Corp (TDC) stock.
Fair Value PE
25, Industry Based PE
16, ROE Based PE
24.51, Risk-Free Anchored PE (25% MoS)
18.16. Based on these 4 values, average assigned is
20.92. Value-Trades has assined P/E value
20.92. An average (Current Year EPS + Next Year EPS) earning per share is
$2.7193.
Fair value using multiple P/Es (blended): $56.88 (PE 20.92 × EPS $2.72)
So the Final Fair Value is: $56.88
Understanding the Value-Trades P/E Blend (click to expand)
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What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $2.72
| Source |
P/E Ratio |
Implied Fair Value |
| Value-Trades Assigned | 20.92 | $56.89 |
