| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 30.70 | 7 |
| Intrinsic value (DCF) | 9.56 | -67 |
| Graham-Dodd Method | 2.40 | -92 |
| Graham Formula | 3.40 | -88 |
Teradata Corporation (LSE: 0LEE.L) is a leading provider of a connected multi-cloud data platform for enterprise analytics, headquartered in San Diego, California. The company’s flagship product, Teradata Vantage, enables businesses to unify and analyze data across hybrid and multi-cloud environments, driving actionable insights for industries such as financial services, healthcare, retail, and telecommunications. With a strong focus on cloud migration and ecosystem simplification, Teradata helps enterprises optimize their data infrastructure while ensuring scalability and security. Operating globally, the company serves clients across the Americas, Europe, the Middle East, Africa, and the Asia-Pacific region through a direct sales force. Founded in 1979, Teradata has established itself as a trusted partner for data-driven decision-making, offering business consulting, support, and maintenance services alongside its core platform. As enterprises increasingly adopt cloud-based analytics, Teradata’s multi-cloud expertise positions it well in the competitive data management and analytics sector.
Teradata presents a mixed investment profile with strengths in cloud-based analytics but faces stiff competition. The company’s $1.75B revenue and $114M net income reflect steady profitability, supported by strong operating cash flow ($303M). Its debt-to-equity ratio is manageable, and it holds $420M in cash, providing financial flexibility. However, the lack of dividends may deter income-focused investors. Teradata’s beta of 0.799 suggests lower volatility than the broader market, appealing to risk-averse investors. The company’s growth hinges on its ability to expand its multi-cloud offerings against larger competitors like Snowflake and Oracle. While Teradata’s established client base and consulting services provide stability, investors should monitor its cloud transition execution and competitive positioning.
Teradata operates in the highly competitive enterprise data analytics and cloud services sector, where differentiation is critical. Its primary competitive advantage lies in its hybrid and multi-cloud capabilities, allowing seamless integration across on-premises and cloud environments—a key selling point for enterprises undergoing digital transformation. However, Teradata faces intense competition from cloud-native players like Snowflake, which dominates the pure-cloud data warehousing space with superior scalability and ease of use. Legacy competitors such as Oracle and IBM offer integrated database and analytics solutions with strong enterprise footholds, while Microsoft (Azure Synapse) and Amazon (Redshift) leverage their cloud infrastructure dominance. Teradata’s consulting services provide an edge in complex deployments, but its slower cloud adoption compared to newer rivals remains a challenge. The company’s focus on regulated industries (e.g., finance, healthcare) helps retain clients with stringent compliance needs, but it must accelerate innovation to keep pace with AI-driven analytics trends.