TDC
Teradata Corporation
$31.35
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 8.0% above fair value
You pay
$31.35
Bear
$24.30
Fair
$29.03
Bull
$33.75
Bear
$24.30
-22.5%
$1.35 × 18x P/E
Fair
$29.03
-7.4%
$1.35 × 22x P/E
Bull
$33.75
+7.7%
$1.35 × 25x P/E
Adjust Assumptions
21.5x
1.35$
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
23.2x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (47 analysts)
$31.33
Divergence from AlphaVal
7%
Summary
Applying a 22x P/E to adjusted EPS of $1.35, the base-case value is $29.03 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