TDC
Teradata Corporation
$28.05
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 3.4% below fair value
You pay
$28.05
Bear
$24.30
Fair
$29.03
Bull
$33.75
Bear
$24.30
-13.4%
$1.35 × 18x P/E
Fair
$29.03
+3.5%
$1.35 × 22x P/E
Bull
$33.75
+20.3%
$1.35 × 25x P/E
Adjust Assumptions
21.5x
1.35$
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
20.8x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (47 analysts)
$32.00
Divergence from AlphaVal
9%
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