DCF Conclusion Study on Teradyne (TER)
Teradyne can give clues on Micron, Broadcom, and Qualcomm's operating environment.
Note: This DCF Conclusion Study on Teradyne will be placed in the SOXX Semiconductor ETF library.
Hey Everyone -
Technology stocks have been under some serious pressure lately but I am starting to see some constructive reactions today on key big tech and semiconductor names at my base case DCF Values shared with the community yesterday.
Obviously the day is still early and a lot could change, but I am encouraged by the bounce off our DCF key levels.
It goes without saying that I hope we gradually recover from here and do not see a second touch/test of the Base Case values. Every subsequent test of a level makes it weaker.
My research is intended for long-only investors. I do not usually look at the short side, even if markets are in a bearish/corrective state.
Some examples include:
NVDA reacting with a sharp recovery bounce today at 105 today. My base case shared with members yesterday for NVDA was 105-110.
AMD reacting with a reasonably strong recovery bounce today at 135. My Bear case for AMD was 130-140.
And more. This is just a few examples.
However, the DCF Model’s Bear/Base/Bull case values are obviously subject to change as further earnings data comes through from associated companies within the tech/semis sector and I may have to adjust valuation multiples when important macro data comes out.
I will provide updates on DCF values when appropriate given the market volatility.
I’m going to do a DCF Conclusion Study on Teradyne (TER) because the company just released earnings this morning, and given their positioning where they do semiconductor testing systems, their results give us additional information on the semiconductor sector as it has implications for Micron, Applied Materials, Qualcomm, and more.
The greater the volatility in the market, the more I think we have to rely on fundamental analysis and DCF modeling to stay level-headed.
On the broader market, I rate this environment a Strong Hold.
Teradyne DCF Discussion/Context
Teradyne is a lower-profile name within the SOXX semiconductor ETF. Their primary selling points include automated test equipment for semiconductors, system testing for hard disk drives, circuit boards, and electronics systems and wireless testing for devices.
They also serve vertically integrated, fabless, and foundry chipmakers with its equipment.
Because of their market positioning, Teradyne’s earnings results have secondary-degree effects on companies such as Qualcomm, Micron, and Broadcom.
Below for members, we’ll talk about what Teradyne’s earnings fundamentals suggest for the SOXX Semiconductor ETF.