Teledyne Stock Is Down 10%. What History Says Now

Teledyne's 10% Drawdown Just Improved. What History Suggests

As of June 18, 2026, Teledyne Technologies Incorporated (TDY) has recovered from its yellow risk zone back to the green zone, with its drawdown moderating to -10.0% at a share price of $619.58. While the stock has climbed from its recent lows, its valuation multiples remain elevated compared to its own historical standards. Specifically, its Price-to-Sales (P/S) ratio sits in the 91st percentile of its historical record since 2006-06-19, while its EV-to-EBITDA ratio resides in the 82nd percentile.

The Transition Back to the Green Zone

Our data shows that Teledyne's Drawdown Severity Score™ has improved to 2.0, which places the asset in the green zone. This zone indicates a "Slightly Elevated" risk profile, representing a measured improvement from the yellow zone where the stock sat previously. The current drawdown of -10.0% has persisted for 76 days, measuring from the all-time high of $688.59.

Historically, Teledyne has experienced 170 total drawdown events. Across all of these historical events, the average maximum drawdown depth is -5.3%, and the average drawdown duration is 54 days. The current drawdown of -10.0% is deeper than the average historical pullback, and its 76-day duration has surpassed the historical average by 22 days.

The Drawdown Severity Score™ is a proprietary metric that evaluates the speed, depth, and duration of a stock's decline relative to its own history. A score of 2.0 indicates that the current pullback has stabilized and is showing signs of recovery, moving out of the yellow zone (which signifies elevated risk) and into the green zone (which signifies normal or slightly elevated risk). The historical frequency of these movements provides a robust statistical baseline for analyzing the stock's volatility patterns.

With an average max drawdown of -5.3%, Teledyne is historically a relatively stable, low-volatility stock. A -10.0% drawdown represents a deviation from its typical behavior, explaining why it triggered a yellow zone warning before recovering to the green zone.

Valuation Multiples Versus Historical Norms

To understand the current recovery, we must examine where Teledyne's valuation multiples sit relative to its own long-term historical records. As of the valuation snapshot on 2026-06-18, the Price-to-Sales (P/S) ratio for Teledyne is 4.6. This ratio sits in the 91st percentile of its daily P/S record since 2006-06-19, meaning it has been lower 91% of the time over the past two decades. The historical median P/S ratio for the stock is 1.7.

Similarly, the EV-to-EBITDA ratio is 20.0 as of the same 2026-06-18 snapshot. This multiple ranks in the 82nd percentile of its daily historical record since 2006-06-19, compared to a historical median of 12.2. These metrics demonstrate that despite the 10.0% price drawdown, the company's valuation multiples remain high relative to its own historical baseline. This information is presented strictly as historical context, and it is not an investment recommendation.

The historical significance of the 2006-06-19 anchor date is substantial. Over this 20-year span, Teledyne has grown from a mid-cap industrial player to a diversified technology conglomerate. During this time, its historical median P/S ratio was 1.7. The current P/S ratio of 4.6 is more than double its historical median.

This indicates that the market is valuing Teledyne's cash flows and sales at a significant premium relative to its historical norm. This premium persists despite the 10.0% price discount from its all-time high.

How Past 10% Drawdowns Have Played Out

Our database tracks every drawdown event for Teledyne since its listing. The stock has experienced a drawdown of 10% or more exactly 23 times out of its 170 total historical drawdown events. Historically, when the stock breaches this 10% threshold, the pullbacks tend to be much more prolonged than the average minor fluctuation.

The average duration of these comparable 10% or deeper drops is 313 days. Comparing the current 76-day duration to this historical benchmark shows that the current pullback is still relatively young. If this event follows the historical average for comparable drops, the recovery process could extend significantly further.

In high-quality industrial technology stocks, deep pullbacks often require months of consolidation or earnings growth to resolve. A 10% drop is not just a quick flash crash: historically, it represents a structural pause in the stock's upward trajectory.

We have compiled the current drawdown data against historical averages to provide a clearer picture of where the stock stands.

If the stock recovers fully to its all-time high of $688.59 within the next few weeks, it will have completed a recovery far faster than the historical 313-day average. However, if history is a guide, the recovery could be a grinding, multi-month process.

Recent News and Market Catalysts

Several fundamental developments have coincided with Teledyne's recent price movements and valuation shifts. According to GuruFocus, market commentators have raised questions about whether Teledyne is overvalued following a recent 3.7% rally. This concern aligns with our data showing both the P/S and EV/EBITDA ratios sitting in high historical percentiles.

In terms of product and operational news, Stock Titan reported that Teledyne launched a new air monitor capable of spotting toxic chemicals in 20 seconds. This technological advancement highlights the company's continuous product innovation in its environmental sensing division.

Additionally, simplywall.st analyzed the stock following the launch of the Boson SX8 and a new contract deal with the U.S. Army. The publication questioned how much valuation upside remains left for the stock given these developments, which supports the elevated multiples observed in our data.

According to Yahoo Finance, analysts have also been debating whether Teledyne is outpacing its aerospace peers this year. This peer comparison is crucial because aerospace and defense multiples have generally expanded, which may explain why Teledyne's multiples are in the 91st and 82nd percentiles despite the price pullback.

Furthermore, Yahoo Finance reported on recent share price swings, urging investors to reassess the company's long-term growth trajectory. These price swings directly contributed to the transition into the yellow zone and the subsequent recovery back to the green zone.

Risk Modeling and What to Watch Next

Investors tracking Teledyne's risk profile should monitor several key thresholds in the coming weeks. First, watch the Drawdown Severity Score™ to see if it remains stable at 2.0 or if it begins to climb back toward the yellow zone. A slide back below the -10.0% drawdown level could trigger a zone change, signaling increased risk.

Second, monitor whether the valuation percentiles begin to shift in future data updates. With the P/S ratio in the 91st percentile and the EV/EBITDA ratio in the 82nd percentile, tracking whether these multiples compress toward their historical medians of 1.7 and 12.2 will be essential. If the price continues to recover while earnings and sales remain flat, these percentiles could climb even higher into historic extremes.

Finally, keep an eye on the duration of the current drawdown. At 76 days, the current event is already longer than the average drawdown of 54 days, but still far short of the 313-day historical average for comparable 10% drops. Tracking how this duration gap closes will provide critical context on whether this recovery is ahead of schedule or following a typical historical path.

If the stock faces new selling pressure and drops below $619.58, the severity score could quickly rise back above 2.0. This would push the asset back into the yellow zone, signaling that the recovery was temporary and that the drawdown is deepening.

Conversely, if the company's financial performance improves while the stock price remains flat, the P/S and EV/EBITDA ratios will compress toward their historical medians. This would lower the percentiles from their current positions, representing a fundamental digestion of the stock's premium multiples.