Teradata (TDC:NYS) Fundamental Valuation Report

Teradata (TDC:NYS) Fundamental Valuation Report

Fundamental Valuation Report


Technology:Information Technology Services

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$39.91 (USD) 04/09/2021

Weighted Valuation
$40.20 (USD)

Overall Rating
Fairly valued to slightly Undervalued by 0.7%

Valuation Models Multiples: $40.20 (USD)
Valuation Methods This company is:
Cash Flow: Undervalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Overvalued on an Asset Valuation
According to Analyst consensus at $28.33 this stock is Overvalued

Company Overview (TDC:NYS USD)

Price 39.91
Range 39.41 – 40.82
52 week 18.37 – 53.76
Open 40.29
Vol / Avg. 503090/1.05M
Mkt cap 4.37B
P/E 34.41
Div/yield 0.00/0.00
EPS 1.16
Shares 109.52M
Beta 1.19

Company Description

Teradata Corp provides analytic data products and related services. The firm operates in data and analytics, which captures, integrates, stores, manages, and analyzes data of all types to answer business questions and deliver insight; and marketing applications, which offer marketing management products to help businesses win customer loyalty. Its solutions include components such as data warehousing, big data, discovery tools, integration tools, and business intelligence tools to manage and integrate the complex data ecosystem. A majority of the firm’s revenue is generated in the United States.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for TDC:NYS

Using a discounted cash flow model we generated an intrinsic value of $53.37 (USD) for TDC:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

TDC:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $53.37 1% 5% 1% 5%
WACC (or Ke) 8.16 $67.63 $43.75
Terminal Growth Rate 3.00 $44.71 $66.20
Tax Rate 0.27 $56.84 $49.90
Cash Flow 484,203,000 $50.52 $56.22
Capital Expenditures -75,400,000 $52.95 $53.80
Long Term Debt 575,000,000 $53.63 $53.11

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $60.31 (USD) for TDC:NYS. We also generated a valuation of $33.87 (USD) using other metrics and comparables.
The comparable companies were Perspecta (PRSP:NYS), Switch (SWCH:NYS), Conduent (CNDT:NAS), Sabre (SABR:NAS) and Science Applications Intl (SAIC:NYS).

Company TDC:NYS End Date Value
Earnings/Share $1.16 (USD)
Book Value/Share $3.65 (USD)
Sales/Share $16.45 (USD)
Cash Flow/Share $2.39 (USD)
EBITDA/Share $1.57 (USD)
Price Based on Comps Adjustment Factor (%)
$85.63 (USD) 96.7
$27.13 (USD) 25.2
$45.02 (USD) 37.3
$18.83 (USD) -21.4
$21.67 (USD) 13.1
34.41 PE Ratio 73.82 0.00 123.71 0.00 0.00 23.93
10.93 PB Ratio 7.43 3.34 15.68 1.20 13.72 3.21
2.43 PS Ratio 2.74 1.05 8.24 0.34 3.34 0.71
16.68 PCF Ratio 10.28 7.85 17.85 8.78 0.00 6.62
25.63 EV to EBITDA 13.82 11.04 23.83 7.30 0.00 13.10


Using a multiples approach we generated a valuation of  $40.20 (USD) for TDC:NYS

Company TDC:NYS End Date Value
Earnings/Share $1.16 (USD)
Book Value/Share $3.65 (USD)
Sales/Share $16.45 (USD)
Cash Flow/Share $2.39 (USD)
EBITDA/Share $1.57 (USD)
Price Based on Comps Adjustment Factor
$82.33 (USD) 0
$26.87 (USD) 0
$29.24 (USD) 0
$35.16 (USD) 0
$27.37 (USD) 0
Ratios Ratio Average
PE Ratio 70.98
PB Ratio 7.36
PS Ratio 1.78
PCF Ratio 14.70
EV to EBITDA 17.46

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  TDC:NYS for the last 10 years was  5.69

We ran the Adjusted Book Value for  TDC:NYS and generated a book value of  $3.68 (USD)
By multiplying these we get an adjusted valuation of  $20.94 (USD)

Analyst Data

In the Stockcalc database there are 3 analysts that provide a valuation for TDC:NYS. The 3 analysts have a concensus valuation for TDC:NYS for 2021 of $28.33 (USD).

TDC:NYS Teradata

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
0 2 1 2.3333 Underperform 2021-4-8

Current Price: 39.91 USD

Analyst Consensus
USD Millions 2021 2022 2023
Mean EPS 1.48 1.74 2.37
# EPS Analysts 3 3 1
Mean Revenue 1,881.80 1,984.00 2,129.10
# Revenue Analysts 2 2 1
Mean Target Price 28.33
Mean Cash Flow 2.96 3.47 3.53
Mean EBITDA 418.40 441.80 470.10
Mean Net Income 174.70 204.20 267.50
Mean Debt Outstanding -280.30 -537.30 -652.30
Mean Tax Rate 23.00 20.00
Mean Growth Rate
Mean Capital Expenditure 53.10 58.60 62.60

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

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