Advantest Corp.
Advantest Corporation is a leading provider of advanced test and measurement solutions for the semiconductor industry. Known for its state-of-the-art technology, the company specializes in the development of semiconductor testing equipment, which plays a crucial role in ensuring the quality and performance of integrated circuits and system-on-chip (SoC) devices. These testing solutions are integral to the development of various electronic devices, including smartphones, computers, and automotive electronics, affecting a wide range of industries and sectors. Advantest's innovative systems support the evolving demands of complex semiconductor fabrication, addressing challenges related to speed, precision, and miniaturization in chip manufacturing. With a commitment to research and development, Advantest maintains its leadership position by regularly introducing cutting-edge products that enhance testing efficiency and accuracy. In the global market, Advantest contributes significantly to the semiconductor supply chain, enabling manufacturers to produce high-quality products that meet rigorous standards, thus safeguarding the functionality and reliability of modern electronic applications.
$205.00
-$23.25 (-10.19%)
EOD Oct 22, 2026
Margins and capital returns are both well above average: 44.22% operating margin, ROIC at 51.21%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue up 44.7% YoY with margins expanding 15.0pp.
At 62x earnings, the current multiple leaves limited room for execution misses or growth deceleration.
62.5x earnings, 78.4x FCF. The market is pricing in years of above-average growth. If that thesis breaks, downside from multiple compression alone could be 30%+. This is a stock where you're paying for the future, not the present.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
¥1.13T
▲ +44.7% YoY
Net Income (TTM)
¥375.35B
▲ +132.9% YoY
Op. Margin
44.22%
▲ +15.0pp YoY
ROIC
51.21%
▲ +22.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
¥299.15B
▲ +12.2% YoY
Op. Cash Flow (TTM)
¥335.18B
▲ +17.2% YoY
Net Debt
-¥319.77B
Net Cash Position
Cash & Equiv.
¥339.97B
3Y CAGR: +26.3%
3Y CAGR: +85.8%
Continue Research
Is Advantest (ADTTF) overvalued?
At a P/E of 62.5 and a price-to-free-cash-flow of 78.4, Advantest (ADTTF) trades below a two-stage DCF intrinsic value of about JPY 21,163.65 per share, so at JPY 205.00 the stock looks undervalued (10,223.7% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Advantest scores 85/100 on Intrinsiqq's quality scorecard (a high-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Advantest's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about JPY 21,163.65 per share for ADTTF, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around JPY 15,872.74. At today's JPY 205.00, that puts the stock about 10,223.7% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Advantest a high-quality business?+
Advantest scores 85 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a high-quality business on these measures. Recent fundamentals include a 44.2% operating margin and a 51.2% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Is Advantest a good stock to buy right now?+
That depends on valuation and quality together, not either alone. ADTTF currently trades below its estimated intrinsic value and scores 85/100 on quality (high-quality). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.
Related stocks: Semiconductor Equipment & Materials
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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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