Teradata Corp. /DE/ (TDC) intrinsic value & 10-year financials

Teradata Corp. /DE/ (TDC) has a Graham intrinsic value of $19.17 per share. At $30.36 on Oct 17, 2026, the stock trades 58% above that value. Over the last 10 fiscal years revenue shrank 3.6% a year to $1.7B, with an average return on invested capital of 29.4%.

Graham intrinsic value
$19.17
Share price (Oct 17, 2026)
$30.36
Price vs Graham value
58% above
Market cap
$2.9B
Revenue (FY2025)
$1.7B
Revenue growth (10-yr CAGR)
-3.6%
ROIC (10-yr avg)
29.4%
Free cash flow (FY2025)
$286.0M

TDC 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $1.7B $130.0M $1.35 $286.0M 12.3% 63.7%
FY2024 $1.8B $114.0M $1.16 $279.0M 11.9% 65.3%
FY2023 $1.8B $62.0M $0.61 $356.0M 10.1% 42.1%
FY2022 $1.8B $33.0M $0.31 $405.0M 6.6% 19.6%
FY2021 $1.9B $147.0M $1.30 $435.0M 12.1% 45.6%
FY2020 $1.8B $129.0M $1.16 $223.0M 0.9% 2.0%
FY2019 $1.9B -$20.0M -$0.18 $94.0M 0.5% 3.0%
FY2018 $2.2B $30.0M $0.25 $211.0M 2.0% 20.3%
FY2017 $2.2B -$67.0M -$0.53 $246.0M 3.0% 9.4%
FY2016 $2.3B $125.0M $0.95 $393.0M 10.0% 23.2%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

TERADATA CORP /DE/ is facing top-line stagnation, with revenue contracting over the decade.

TERADATA CORP /DE/ has earned high returns on invested capital, averaging 29.4% ROIC over the available history. High ROIC is consistent with a durable franchise, but it is not by itself proof of an economic moat.

Over the decade, TERADATA CORP /DE/ shows that management has aggressively returned capital to shareholders by retiring 26.5% of outstanding shares, and that the company has leveraged its balance sheet to sustain operations.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, TERADATA CORP /DE/ is modeled at 4.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $19.17 per share.

TDC stock: frequently asked questions

What is the intrinsic value of Teradata Corp. /DE/ (TDC) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 4.0% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, TDC's intrinsic value is about $19.17 per share.

Is TDC stock undervalued?

At $30.36 (close on Oct 17, 2026), TDC trades 58% above its Graham value of $19.17. On Graham's terms the shares look fully priced. A formula is a starting point for research, not a recommendation.

How fast has Teradata Corp. /DE/ grown?

Revenue went from $2.3B in fiscal 2016 to $1.7B in fiscal 2025, a compound annual growth rate of -3.6%. Net income was $130.0M in fiscal 2025.

Does Teradata Corp. /DE/ generate free cash flow?

Teradata Corp. /DE/ generated $286.0M of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 10 of the last 10 reported years.

What is TDC's return on invested capital?

Average ROIC over the last 10 fiscal years was 29.4%, and average return on equity was 27.5%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this TDC data come from?

From Teradata Corp. /DE/'s annual 10-K filings on SEC EDGAR. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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