Complete TDC Stock Valuation Analysis
Comprehensive intrinsic value analysis using 6 different methodologies
TDC DCF Analysis
TDC (Teradata Corporation) discounted cash flow analysis with multiple scenarios, growth assumptions, and terminal value calculations
Financial Projections
| Metrics | 2022 (Historical) | 2023 (Historical) | 2024 (Historical) | 2025 (Projected) | 2026 (Projected) | 2027 (Projected) | 2028 (Projected) | 2029 (Projected) |
|---|---|---|---|---|---|---|---|---|
| Revenue | $1.8B | $1.8B | $1.8B | $1.7B | $1.7B | $1.7B | $1.6B | $1.6B |
| Revenue Growth % | - | 2.1% | -4.5% | -2.0% | -1.8% | -1.6% | -1.5% | -1.3% |
| EBIT | $118.0M | $186.0M | $209.0M | $163.8M | $162.6M | $161.6M | $160.9M | $160.3M |
| EBIT Margin % | 6.6% | 10.1% | 11.9% | 9.6% | 9.7% | 9.8% | 9.9% | 10.0% |
| Tax Rate % | 50.0% | 47.0% | 30.5% | 35.2% | 34.2% | 33.1% | 32.1% | 31.1% |
| NOPAT | $59.0M | $98.6M | $145.3M | $106.2M | $107.0M | $108.0M | $109.2M | $110.5M |
| NOPAT Margin % | 3.3% | 5.4% | 8.3% | 6.2% | 6.4% | 6.5% | 6.7% | 6.9% |
| Capex | $16.0M | $20.0M | $26.0M | $27.0M | $25.2M | $23.5M | $22.0M | $20.6M |
| Capex / Revenue % | 0.9% | 1.1% | 1.5% | 1.6% | 1.5% | 1.4% | 1.3% | 1.3% |
| Depreciation | $134.0M | $116.0M | $100.0M | $111.5M | $109.5M | $107.7M | $106.1M | $104.7M |
| D&A / Revenue % | 7.5% | 6.3% | 5.7% | 6.5% | 6.5% | 6.5% | 6.5% | 6.5% |
| Change in NWC | $-52.0M | $-148.0M | $-54.0M | $-51.6M | $-40.5M | $-31.9M | $-25.2M | $-19.9M |
| NWC Change / Revenue % | -2.9% | -8.1% | -3.1% | -3.0% | -2.4% | -1.9% | -1.5% | -1.2% |
| Unlevered FCF | $229.0M | $342.6M | $273.3M | $242.3M | $231.9M | $224.1M | $218.5M | $214.4M |
| UFCF % Chg. | - | 49.6% | -20.2% | -11.3% | -4.3% | -3.4% | -2.5% | -1.8% |
| FCF / Revenue % | 12.8% | 18.7% | 15.6% | 14.1% | 13.8% | 13.5% | 13.4% | 13.3% |
| Discount Factor | - | - | - | 0.933 | 0.871 | 0.812 | 0.758 | 0.707 |
| Present Value of FCF | - | - | - | $226.1M | $201.9M | $182.1M | $165.6M | $151.7M |
| Sum of PV of UFCF | - | - | - | $226.1M | $428.0M | $610.1M | $775.7M | $927.3M |
WACC Calculation
Weighted Average Cost of Capital used for discounting cash flows.
| WACC Calculation | Value |
|---|---|
| Cost of Debt | 6.0% |
| Tax Rate | 35.2% |
| After Tax Cost of Debt | 3.9% |
| Risk Free Rate | 4.46% |
| Market Risk Premium | 4.3% |
| Beta | 0.83 |
| Cost of Equity | 8.1% |
| Total Debt | $576.0M |
| Market Cap | $2.1B |
| Total Capital | $2.7B |
| Debt Weighting | 21.3% |
| Equity Weighting | 78.7% |
| WACC | 7.2% |
Terminal Value
Choose between perpetuity growth or exit multiple methods.
| Terminal Value Calculation | Value |
|---|---|
| Terminal Growth Rate | 2.5% |
| Final Year FCF | $214.4M |
| Terminal Value | $4.7B |
| PV of Terminal Value | $3.3B |
| Cumulative PV of UFCF | $927.3M |
| Net Debt | $156.0M |
| Equity Value | $4.1B |
| Shares Outstanding | 98.2M |
| Implied Share Price | $42 |
| Current Share Price | $22 |
| Implied Upside/(Downside) | +87.9% |
Valuation Summary
$41.73
Implied Price
$22.20
Current Price
+87.9%
Upside/Downside
7.2%
WACC
TDC Peer Valuation Analysis
Relative valuation based on comparable company trading multiples
Peer Valuation Analysis
Fair Value Range Analysis
Based on median multiples from 9 peer companies in Technology
P/E Ratio
$70.70
+218.4%
Peer Median: 49.9x
EV/EBITDA
$60.94
+174.4%
Peer Median: 18.4x
P/S Ratio
$66.30
+198.6%
Peer Median: 3.7x
Interpretation: Each multiple provides a different perspective on fair value. Consider which multiple is most relevant for TDC's business model and current situation.
Multiple Comparison
| Multiple | TDC Current | Peer Median | Peer Average | Premium/Discount | Assessment |
|---|---|---|---|---|---|
| P/E Ratio | 15.7x | 49.9x | 45.5x | -68.6% | Undervalued |
| EV/EBITDA | 7.2x | 18.4x | 17.7x | -60.9% | Undervalued |
| P/S Ratio | 1.2x | 3.7x | 5.0x | -66.5% | Undervalued |
Peer Companies
Click any company to view their valuation
| Company | Market Cap | P/E Ratio | EV/EBITDA | P/S Ratio |
|---|---|---|---|---|
| $4.92B | 0.0x | 0.0x | 10.9x | |
| $4.01B | 0.0x | 164.5x | 4.3x | |
| $2.71B | 49.9x | 17.3x | 3.4x | |
| $2.37B | 0.0x | 0.0x | 3.7x | |
| $2.12B | 15.7x | 7.2x | 1.2x | |
| $1.51B | 92.2x | 18.4x | 3.2x | |
| $1.52B | 60.1x | 31.0x | 1.8x | |
| $1.42B | 19.5x | 9.1x | 3.7x | |
| $3444.39B | 35.8x | 23.3x | 12.8x |
TDC Graham Number
Benjamin Graham's conservative valuation formula for defensive investors
Input Data
| EPS (TTM) | $1.42 | Latest 10-K |
| Book Value per Share | $1.35 | Latest 10-K Balance Sheet |
| Graham Constant | 22.5 | Benjamin Graham's formula |
Graham Number Result
$6.57
Intrinsic Value
$22.20
Current Price
-70.4%
Upside/Downside
Confidence: High
Conservative value investing approach
Calculation Breakdown
Formula:
√(22.5 × EPS × BVPS)
Step 1: Multiply constant by EPS
22.5 × 1.42 = 31.88
Step 2: Multiply by Book Value per Share
31.88 × 1.35 = 43.18
Step 3: Take square root
√43.18 = 6.57
Graham Number Result:
$6.57
TDC Graham Intrinsic Value
Growth-adjusted intrinsic value with two formula variants
Formula Selection
V = EPS × (8.5 + 2g)
Graham's original P/E shortcut for growth, no interest-rate adjustment
V = [EPS × (8.5 + 2g) × 4.4] / Y
Graham's 1974 refinement: adds rate-environment sensitivity
Active Formula: Base-Growth
1.42 × (8.5 + 2 × 8.0%)
Input Data & Growth Assumptions
Current EPS (TTM)$1.42
Latest 10-K • 2024-12-31T00:00:00
No positive historical growth rates available.
Graham's formula is designed for growing companies. Use the custom input below with a conservative positive growth estimate (5-10%).
Custom
%
Enter a positive growth rate estimate (0-50%)
Graham Intrinsic Value Result
$34.71
Intrinsic Value
$22.20
Current Price
+56.3%
Upside/Downside
Base Formula
Growth: 8.0%
TDC Peter Lynch Fair Value
Growth-based valuation using PEG ratio analysis for growth stocks
Fair Value Calculation
EPS (TTM)$1.42
Latest 10-K • 2024-12-31T00:00:00
No positive historical growth rates available. Using custom growth rate slider.
10.0%
1%50%
Fair Value Formula: EPS × Growth Rate
$1.42 × 10.0% = $14.17
$14.17
Fair Value
$22.20
Current Price
-36.2%
Upside/Downside
PEG Analysis
15.7x
Current P/E
10.0%
Growth Rate
1.57
PEG Ratio (P/E ÷ Growth Rate)
Overvalued
PEG Ratio Interpretation:
• PEG < 1.0: Undervalued (growth exceeds P/E)
• PEG = 1.0: Fairly valued (ideal Lynch ratio)
• PEG > 1.5: Overvalued (paying premium for growth)
Peter Lynch's Rule:
"The P/E ratio of any company that's fairly priced will equal its growth rate." A stock with 15% growth should trade at a P/E of 15 (PEG = 1.0).
TDC Earnings Power Value (EPV)
Normalized earnings-based valuation for sustainable earning power assessment
Earnings Normalization
| Earnings Component | Amount ($B) | Description |
|---|---|---|
| Reported Earnings | 0.1 | Base earnings from financial statements |
| Normalized Earnings | 0.1 | Final normalized earning power |
One-time Items: Remove non-recurring gains/losses
Cyclical Adjustment: Normalize for economic cycle position
EPV Result
$14.47
EPV per Share
$22.20
Current Price
-34.9%
Upside/Downside
8.0%
WACC: 8.0% (calculated from market data)
Confidence: High
Normalized earnings approach
EPV Calculation Breakdown
Enterprise Value Calculation
| Normalized Earnings | $0.1B |
| Cost of Capital | 8.0% |
| Enterprise Value | $1.4B |
Per Share Value
| Enterprise Value | $1.4B |
| Shares Outstanding | 0.1B |
| EPV per Share | $14.47 |
WACC Components
| Cost of Equity | 9.2% |
| After-Tax Cost of Debt | 3.5% |
| Equity Weight | 79.1% |
| Debt Weight | 20.9% |
| WACC | 8.0% |