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Teradata Corporation (TDC) Fair Value & Analysis

Technology · US · Market cap $3.3B

TC Teradata Corporation logo Teradata Corporation TDC · US
Price$27.39
Fair Value$27.63
Upside+0.9%
Quality71/100
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Weak Growth
Highly profitable · 24.9% net margin
High debt · generates free cash flow
Ranks above peers (9/14)
Wide moat 75/100
Evidence: High Range $20.72 – $34.54 Share as image

Fair value as of: Jul 11, 2026

From 22 valuation models · updated 29 days ago

Share price −22.1% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from $20.72 (bear) to $34.54 (bull), base $27.63. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 71/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

$58.89 $19.20 Fair Value $27.63 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 11, 2026.

How to read this chart

60‑month range $19.20 – $58.89 · fair‑value band $20.72 – $34.54 · the $27.39 price screens below the $27.63 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 11, 2026.

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Analysis

Teradata Corporation (TDC) currently trades at $27.39, while our model-based Fair Value estimate is $27.63, implying the stock looks roughly 0.9% fairly valued today. The Quality Score stands at 71/100 (solid quality), in the Technology sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Teradata Corporation generated revenue of $1.7B at a net margin of 24.9%. Revenue grew 6.2% year over year. It earns a return on equity of 117.8%. Net debt stands at $68.0M. Fundamentals as of Jul 11, 2026

Our scenario range runs from $20.72 (bear case) to $34.54 (bull case); at $27.39, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. Analysts expect earnings well below the last reported figure (earnings in transition, for example expiring patents or contracts); a fair value that looks fair on trailing earnings may then be too optimistic. The share trades about 34% below its 52-week high and 38% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -50% fair-value upside, at 1%, TDC screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $29.99 $39.91 $56.35 80
Residual Income $11.97 $20.31 $423.07 76
Rev-Margin DCF $22.82 $32.25 $43.97 74
All 22 models by family
DCF Models
FCF DCF $28.80 $39.10 $57.58 38
Owner Earnings $20.44 $27.68 $40.66 31
5Y Revenue Exit $22.82 $31.57 $44.26 39
5Y EBITDA Exit $27.61 $39.87 $56.11 41
5Y P/E Exit $22.55 $31.11 $41.39 38
10Y Revenue Exit $24.54 $31.17 $38.14 36
10Y EBITDA Exit $27.89 $36.19 $44.93 37
10Y P/E Exit $24.88 $30.89 $36.49 35
Earnings-Based
Graham-Dodd $9.39 $11.48 $12.92 54
EPV $15.83 $18.22 $20.29 59
Multiples
P/E Multiple $20.72 $27.63 $34.54 63
P/S Multiple $17.61 $23.49 $29.36 58
P/B Multiple $5.50 $7.33 $9.17 55
EV/EBIT $30.07 $39.87 $49.68 53
EV/EBITDA $31.22 $41.41 $51.60 54
EV/Revenue $20.48 $28.98 $37.48 43
Asset-Based
NCAV (Graham) $1.22 $1.64 $2.44 50
Growth DCF
Growth DCF $29.99 $39.91 $56.35 80
Rev-Margin DCF $22.82 $32.25 $43.97 74
Economic Profit
Residual Income $11.97 $20.31 $423.07 76
ROIC Compounder $15.83 $18.45 $20.83 72
Growth Earnings
Growth-Adj P/E $14.66 $20.94 $27.23 68

Widest divergence: Growth DCF ($32.25) versus Asset-Based ($1.64). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $1.7B
Revenue growth (YoY) +6.2%
Net margin 24.9%
Return on equity 118%
Free cash flow $286M FY2025
P/E ratio 8.0
More key figures
Operating margin 19.1%
EPS (TTM) $4.33
EPS growth (YoY) +671%
Net debt $68.0M FY2025

Figures from reported company fundamentals · as of Jul 11, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 71/100

Of which business quality 67 · Market factors (momentum, volatility) 55

Profitability 72
Margins and returns on capital today
Quality Growth 29
Are margins and returns improving?
Cashflow 85
Earnings quality: real cash, not paper profit
Fin. Strength 29
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 47
Calm price path (market factor)
Momentum 61
Price trend over the last 3–12 months (market factor)
52W Momentum 53
Distance to the 52-week high (market factor)
Net Issuance 98
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Teradata Corporation, together with its subsidiaries, provides an AI and knowledge platforms in the United States and internationally. It operates in two segments, Product Sales and Consulting Services. The company's AI and Knowledge platform designed for enterprise-grade workloads.

Full company description

Teradata Corporation, together with its subsidiaries, provides an AI and knowledge platforms in the United States and internationally. It operates in two segments, Product Sales and Consulting Services. The company's AI and Knowledge platform designed for enterprise-grade workloads. Its consulting services include support services for organizations to establish data analytics and and AI vision, enable a hybrid ecosystem architecture, and identify and operationalize opportunities. The company serves clients in financial services, healthcare and life sciences, public sector, manufacturing, retail, telecommunications, and travel/transportation sectors through a direct sales force. Teradata Corporation was incorporated in 1979 and is headquartered in San Diego, California.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Teradata Corporation reported revenue of $1.7B in FY2025 versus $1.9B in FY2021, a compound −3.5%/yr. Reported net income was $130M in FY2025, compounding −3.0%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
$1.7B
Latest YoY
−5.0%
Avg. growth/yr (3Y)
−2.5%
Avg. growth/yr (5Y)
−2.0%
Avg. growth/yr (22Y)
+1.5%
Revenue −3.5%/yr
FY21 $1.9B
FY22 $1.8B
FY23 $1.8B
FY24 $1.8B
FY25 $1.7B
Net income −3.0%/yr
FY21 $147M
FY22 $33.0M
FY23 $62.0M
FY24 $114M
FY25 $130M

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Cite: Fair Value Calculator (2026). "Teradata Corporation Fair Value". https://www.fairvalue-calculator.com/stock/TDC

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Software - Infrastructure · 368 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 71 · Top 25%
Fair Value upside +1% · Above median
Return on equity (TTM) 118% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 25% · Top 25%
Operating margin (TTM) 19% · Top 25%
Revenue growth 6% · Below median
Debt / equity 1.87× · Higher than 75% of peers

Valuation Multiples vs Software - Infrastructure median · lower = cheaper

P/E (TTM) 8.0× · Cheaper than 75% of peers
P/B 14.25× · Pricier than 75% of peers
P/S (TTM) 1.94× · Cheaper than median
P/FCF 11.5× · Pricier than median
EV/EBITDA 9.9× · Cheaper than median
PEG 3.35× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 35 · sector 0
FUTURE 31 · sector 46
PAST 100 · sector 15
HEALTH 6 · sector 99
DIVIDEND 0 · sector 28

Insider activity: 44/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Software - Infrastructure stocks, each showing price versus our Fair Value estimate (as of Jul 11, 2026).

Stock Price Fair Value vs Fair Value
Microsoft Corporation MSFT $384.00 $274.17 -29%
Oracle Corporation ORAC C$9.08 C$2.94 -68%
Fortinet, Inc FTNT $160.78 $44.96 -72%
Synopsys, Inc 1SNPS €354.50 €93.61 -74%
Block, Inc XYZ A$114.53 A$70.69 -38%
CoreWeave, Inc CRWV $79.94 $44.89 -44%
Range Intelligent Computing Technology Group 300442 ¥71.60 ¥34.00 -53%
Oracle Financial Services Software Limited OFSS ₹11,651 ₹5,821 -50%
360 Security Technology Inc 601360 ¥9.64 ¥5.05 -48%
One97 Communications Limited PAYTM ₹1,342 ₹181.50 -86%

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Frequently asked questions

Is Teradata Corporation (TDC) overvalued or undervalued?
As of Jul 11, 2026, our model estimates a fair value of $27.63 versus a price of $27.39, about +1% (fairly valued).
What is the fair value of TDC?
Our model-based fair value for Teradata Corporation is $27.63 (as of Jul 11, 2026), built from audited fundamentals. The current price is $27.39.
What is the quality score of TDC?
Teradata Corporation has a Quality Score of 71/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Teradata Corporation (TDC)?
Teradata Corporation reported trailing-twelve-month revenue of about $1.7B (latest available figure, as of Jul 11, 2026).
What is the net profit margin of TDC?
The net profit margin of Teradata Corporation is about 24.9%, meaning it keeps roughly 24.9% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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