Is Teledyne Technologies Incorporated (TDY) overvalued?
On Equity Rank's model estimate, TDY trades close to its fair value (0% above it). Teledyne Technologies Incorporated (TDY) last closed at $618.60; the multi-method model fair value is $617.18.
| Price | Model fair value | Price vs model |
|---|---|---|
| $618.60 | $617.18 | 0% above |
What the answer rests on
- 5 of 11 valuation methods put TDY's value above its price and 6 put it below, so the methods disagree.
- To justify today's price, TDY's free cash flow would need to grow about 9.6% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 39.7% a year.
- TDY trades at 28.9 times its last year's earnings, against a median of 38.3 for 26 profitable Life Sciences Tools companies.
- Over the past year the price sat below the model fair value on 22% of trading days. The gap ranged from 4% below to 17% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind TDY's fair value · What prices assume · Other companies