PTC

PTC Inc.Technology / Software - ApplicationINTACT

PTC Inc. operates as software company in the Americas, Europe, and the Asia Pacific. The company provides Windchill, a suite that manages all aspects of the product development lifecycle(PLM) that provides real-time information sharing, dynamic data visualization, collaborate across geographically distributed teams, and enabling manufacturers to elevate product development, manufacturing, field service, and end-of-life processes; ThingWorx, an Industrial Internet of Things software; ServiceMax, a service lifecycle management solutions enable companies to asset uptime with optimized in-person and remote service and technician productivity with mobile tools, and deliver metrics; and Arena, a SaaS PLM solution enables product teams to collaborate virtually to share product and quality information with internal teams and supply chain partners and deliver products to customers. It offers Codebeamer, an application lifecycle management for products and software development; Servigistics, a service parts management solution; and FlexPLM, a platform for merchandising and line planning, materials management, sampling, and others. In addition, it offers Kepware, an enterprise industrial connectivity solution; Kepware Edge, a Linux-based industrial communications platform; KEPServerEX, an industrial connectivity solution for small projects; Creo, a 3D CAD technology enables the digital design, testing, and modification of product models; and Onshape, a SaaS product development platform that delivers computer-aided design with data management, collaboration tools, and real-time analytics. Further, it offers Vuforia, an augmented reality (AR) software; and Arbortext, a dynamic publishing solution streamlines how organizations create, manage, and publish technical documentation. Additionally, the company provides PTC Products; PTC Mathcad; and augmented reality product. PTC Inc. was incorporated in 1985 and is headquartered in Boston, Massachusetts.

Share Price
$130.78
52W: $108.5 - $208.56
DCF Fair Value
$248.63
+47.4% MoS
P/E (TTM)
12.7x
ROIC
21.2%
Operating Margin
28.2%
FCF Yield
7.3%
Debt / Equity
0.46x
Piotroski Score
7/9
Altman Z-Score
3.34
Market Cap
$14.2B

Price vs. Intrinsic Value Corridor

Margin of Safety Buy Zone (<25% Discount)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$248.63
MOS Buy Target (-25%)
$186.47
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$130.78
DCF Fair Value
$247.67
+47.2% MoS
$1,031M
$100M$1,031M (Reported)$50,000M
14.1%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
$1,200M
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$11.6B
PV of Terminal Value
$16.6B
Implied Enterprise Value
$28.2B
Implied Equity Value
$27.0B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$1,176$1,342$1,532$1,747$1,994$2,084$2,177$2,275$2,378$2,485
Present Value (PV)$1,079$1,130$1,183$1,238$1,296$1,242$1,191$1,142$1,095$1,050

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-53.4% Premium
$85.26

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $10.31BVPS: $31.34
Revised Graham Formula+53.4% MoS
$280.69

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings6.9% Yield
$8.99 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $1.0BYield: 6.9%

Reverse DCF: Market Growth Expectation

EXTREMELY LOW BARRIER
0.7% CAGR (Next 10 Yrs)

At the current price of $130.78, the market is assuming the business will compound Free Cash Flow at 0.7% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
✓ Low market hurdle: Easy for a wide-moat compounder to beat.
Autonomous Thesis Underwriting

Surveil PTC with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for PTC Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 28.2% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: PTC Inc. (PTC) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for PTC Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, PTC Inc. has an estimated DCF intrinsic fair value of $248.63 per share compared to its current market price of $130.78. This represents an estimated 47.4% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $85.26.

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