TDC
Teradata Corporation
$33.44
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 7.0% above fair value
You pay
$33.44
Bear
$26.16
Fair
$31.25
Bull
$36.33
Bear
$26.16
-21.8%
$1.38 × 18x P/E
Fair
$31.25
-6.5%
$1.38 × 22x P/E
Bull
$36.33
+8.6%
$1.38 × 25x P/E
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
24.2x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $34.80 from 47 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $31.25 per share.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples