MeritValue

TERADATA CORP /DE/

TDCdata completeness 100%18 fiscal years on file
The thesis, from the filings

TERADATA CORP /DE/ earns about 53% on invested capital, far above its ~9% cost of capital, and has bought back 14% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $12.23 and $42.68 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$1.92B1$1.8B2$1.83B3$1.75B3$1.66B3
Net income$147M4$33M5$62M6$114M6$130M6
Operating cash flow$463M7$419M8$375M9$303M9$305M9
Capital expenditure$28M10$14M11$19M12$24M12$19M12
Free cash flow (derived)$435M7$405M8$356M9$279M9$286M9
Total debt$412M13$498M14$499M15$480M16$456M16
Cash & equivalents$592M17$569M18$486M19$420M19$493M19
Diluted shares112.9M105.8M102.4M98.2M96.6M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$23.81
your share of equity
Profit it earned you last year
$13.46
Free cash flow it threw off
$29.61
Debt you’d be carrying
$47.2

10 shares is a claim on $23.81 of net worth that earned you $13.46 and generated $29.61 of cash last year, against $47.2 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
53% avg · 5y
FY21 60%FY22 24%FY23 53%FY24 59%FY25 67%

It earned about 53% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
−14% shares · 5y

Share count is down 14% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has risen 11% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $12.23 and $42.68 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$39.5
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$286M
DCF · Growth Exit 5Y
$42.68
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$286M
Earnings Power Value
$12.23
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$114M
  • growthAssumed0.0%
Graham Number
$8.5
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $42.68
The three cases
Bear0.0%$42.68
Base0.0%$42.68
Bull5.0%$52.92

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000816761-24-000023 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0000816761-25-000027 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001628280-26-012671 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0000816761-24-000023 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0000816761-25-000027 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001628280-26-012671 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0000816761-24-000023 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0000816761-25-000027 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001628280-26-012671 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0000816761-24-000023 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0000816761-25-000027 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001628280-26-012671 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0000816761-23-000008 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-12-31 · accession 0000816761-24-000023 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-12-31 · accession 0000816761-25-000027 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-12-31 · accession 0001628280-26-012671 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-12-31 · accession 0000816761-24-000023 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0000816761-25-000027 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001628280-26-012671 (CashAndCashEquivalentsAtCarryingValue)