Teradata stock just endured a brutal reset, sliding almost 24% to about US$26 even though the latest quarter showed solid earnings power. Non GAAP operating margin reached 21.5% and non GAAP earnings per share came in at US$0.69, comfortably ahead of guidance. That clash between price and profit is the real story.
Over the past month the stock was already under pressure, with the 30 day return down 28%. Now investors are weighing a much cheaper P/E of 5.4x against a business that just delivered 27.1% trailing net margin and stronger free cash flow.
Is Teradata at 5.4x P/E a genuine bargain or just a low multiple attached to weakening expectations? Compare the sell off with the earnings power in our valuation analysis for Teradata
