TDC
Teradata Corporation
$33.96
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 8.7% above fair value
You pay
$33.96
Bear
$26.15
Fair
$31.24
Bull
$36.31
Bear
$26.15
-23.0%
$1.38 × 18x P/E
Fair
$31.24
-8.0%
$1.38 × 22x P/E
Bull
$36.31
+6.9%
$1.38 × 25x P/E
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
24.6x
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 $34.75 from 47 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $31.24 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