Teradyne Is Down 5%. What History Says Now

Teradyne Is Down 5% From All-Time Highs. What History Says.

As of June 16, 2026, Teradyne, Inc. (TER) has entered a minor drawdown of -5.3% from its all-time high, registering a Drawdown Severity Score™ of 0.8. This severity score places the stock firmly within its green zone, indicating a typical and historically common level of price fluctuation rather than a severe correction. The stock has been in this drawdown state for exactly 1 day, maintaining its position within the green zone from the previous period.

Analyzing Teradyne's Current Drawdown Metrics

The current price of TER stands at $409.35, which represents a -5.3% decline from its all-time high of $432.41. This movement represents a very fresh pullback, with the stock having spent only 1 day in this drawdown cycle as of June 16, 2026. Our data shows that the current Drawdown Severity Score™ of 0.8 is categorized as Typical, meaning that pullbacks of this magnitude are standard occurrences in the stock's trading history.

Understanding the current position requires looking at how quickly the asset has moved from its peak. A 1-day duration for a -5.3% drop indicates a sharp initial move, but it is too early to determine if this will develop into a prolonged correction. In historical terms, a Drawdown Severity Score™ below 1.0 suggests that the market has not yet priced in any anomalous structural risk, keeping the stock in its normal operating range.

When an asset remains in the green zone, it signifies that the current price contraction is well within the bounds of standard market noise. Our historical database tracking TER shows that minor pullbacks are a constant feature of its long-term price chart. This current 1-day dip is the beginning of a new drawdown cycle, and tracking how long it remains at this level is key to assessing its risk profile.

Historical Drawdown Behavior of TER

To put the current -5.3% pullback into perspective, we must examine the complete historical record of the asset. Since its listing, the stock has experienced a total of 91 historical drawdown events. Across all 91 of these historical cycles, the average maximum drawdown reached was -10.7%.

The duration of these historical drawdowns also varies significantly depending on the depth of the decline. On average, a typical drawdown for the stock has lasted 159 days from the initial peak to a full recovery of the previous high. The current 1-day duration is exceptionally short compared to this historical average, reflecting the infancy of the current price contraction.

We can compare these historical benchmarks to the current drawdown metrics in the table below:

This table highlights that the current drawdown depth of -5.3% is roughly half the size of the historical average drawdown of -10.7%. However, the duration of 1 day is a mere fraction of the 159 days typically required for TER to complete a full drawdown and recovery cycle. This suggests that while the depth is relatively moderate, the timeline for a full recovery could stretch significantly if historical averages hold true.

Contextualizing Comparable 5% Drops

While the average drawdown across all 91 events is -10.7%, many of those events were minor intraday or short-term fluctuations that resolved quickly. To establish a more relevant comparison, we isolate historical events where the stock dropped by 5% or more from its peak. Our data shows that the stock has dropped 5% or more from its peak exactly 40 times in its history.

When the stock crosses this 5% threshold, the historical recovery path tends to lengthen significantly. The average duration of these 40 comparable drops is 355 days. This is more than double the 159-day average for all 91 drawdown events, demonstrating that once a pullback exceeds the 5% threshold, the timeline to reclaim all-time highs historically extends to nearly a full year.

This substantial difference in duration highlights the non-linear nature of stock market recoveries. A minor 2% or 3% dip often resolves in a matter of days or weeks, dragging down the overall historical average. Once a drop reaches the -5.3% level seen as of June 16, 2026, it enters a class of pullbacks that historically require sustained consolidation before a new high can be established.

Valuation Context and Historical Multiples

To understand how the current price pullback aligns with the stock's historical valuation framework, we look at key multiples as of the snapshot date of 2026-06-15. The Price-to-Sales (P/S) ratio for TER stands at 16.8, which sits in the 100th percentile of its own daily P/S record since 2006-06-12. This indicates that despite the -5.3% price drawdown from its peak, the P/S multiple remains at a historically high level compared to its own historical median of 3.0.

Similarly, the Enterprise Value-to-EBITDA (EV/EBITDA) ratio is recorded at 57.4 as of 2026-06-15. This ratio places the stock in the 93rd percentile of its own daily EV/EBITDA record since 2006-06-12. This multiple is also historically high compared to the asset's own historical median EV/EBITDA of 14.0, showing that the current price contraction has not brought valuation multiples back down to historical norms.

This valuation context shows a divergence between the price drawdown and the historical valuation percentiles. While the stock has fallen -5.3% from its peak, both the P/S and EV/EBITDA ratios remain near the top of their 20-year historical ranges. This suggests that the current price dip has occurred at a time when the stock's multiples are highly elevated relative to its own long-term historical trading history.

Data Limits and Methodology

This analysis relies exclusively on verified price, drawdown, severity, duration, and historical valuation percentile data. We do not incorporate external market narratives, analyst forecasts, or macroeconomic developments into this assessment. The historical comparisons and metrics presented are derived mathematically from the price history of the stock.

Drawdown analysis is a backward-looking tool that measures the depth and duration of price declines relative to previous peaks. While historical patterns provide valuable context regarding how the asset has behaved during past 5% declines, they do not guarantee future performance or specific recovery timelines. If the severity score increases, it would signal that the current drawdown is deviating from typical historical patterns.

By focusing solely on price and valuation data, we avoid the subjective interpretations that often accompany market movements. This data-only approach ensures that investors have a clear, unvarnished view of where TER stands relative to its own historical standards.

Key Severity Thresholds to Watch

For investors monitoring the risk profile of TER, several key technical and historical thresholds serve as useful guideposts. The current Drawdown Severity Score™ of 0.8 is well within the typical green zone, but a further decline would alter this classification.

First, the -5.3% drawdown is just past the 5% threshold, a level the stock has breached 40 times historically. Second, the historical average drawdown of -10.7% represents the next major statistical level. If the stock declines to this average depth, it would require a price of approximately $386.14, representing a deeper test of the historical average drawdown profile.

Monitoring these levels allows investors to track whether the current pullback remains a typical green-zone event or begins to transition into a more severe correction. A move past the historical average drawdown of -10.7% would represent a significant shift in the stock's risk profile, potentially indicating a longer path to recovery.