PTC Inc (PTC) stock analysis
PTC Inc (PTC) clears 2 of this site's 8 mechanical value filters, 7 of 8 Buffett-style checks and 3 of 5 Lynch-style checks. At $194.00 it trades 32.2% above this site's neutral DCF value (a margin of safety of -32.2%). Its earnings quality rates Strong and it returns +0.4% to shareholders net of dilution. Figures are as of October 23, 2026, from SEC filings and market data refreshed weekly; this is educational analysis, not investment advice.
Data as of October 23, 2026. Refreshed weekly from SEC filings and market data.
What does PTC do?
PTC sells software for designing, building and servicing physical products, such as CAD and product-lifecycle tools used by manufacturers, mostly on subscription.
Brands and businesses it owns
- Creo
- Windchill
- Onshape
- ThingWorx
- Kepware
- Arena
What stands out about PTC?
- The share price implies 15.0% yearly growth. At $194.00, PTC's free cash flow of $8.60 per share would have to grow 15.0% a year, fading to 2.5% by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8%, so the price asks for more growth than the baseline. Change the assumptions.
- Misses 4 of the 8 value filters. It fails Market Cap > $25B ($21.1B), PEG Ratio < 1.5 (1.51) and Price/Sales < 7 (7.15) and 1 more; the other 2 pass and 2 were not evaluated. See every filter.
- Strongest against peers: net margin. At 41.4% (peer median 16.9%) it ranks 6th of 44 among technology stocks this site tracks. See the ranking.
- P/E at the bottom of its own range. PTC trades at 17.3× trailing earnings; at the end of each of its last 5 fiscal years the multiple was between 29.7× and 68.7×.
- Short interest is elevated. 5.1% of the float is sold short, 3.2 days to cover, above this site's 5% flag. See the figures.
How has PTC's share price moved?
The interactive price chart needs JavaScript.
Is PTC undervalued? The value diligence check
Every value-investing signal this site computes for this stock, gathered in one place: the same real numbers from the tools below, not a new score.
- Margin of safety (DCF) -32.2%
- P/E vs. its own history 17.3x · at/below its cheapest point Real range: 29.7x–68.7x over 5 years (net income per diluted share from each fiscal year's 10-K, paired with the real closing price at that fiscal year-end).
- Wall St. analyst rating Buy · 3.92/5 24 analysts this month: 6 strong buy, 11 buy, 6 hold, 1 sell, 0 strong sell (Finnhub). Up from 3.85 last month.
- Altman Z″-Score (bankruptcy risk) 3.61 · Safe zone
- Earnings quality (is the profit real?) Strong · 1 watch Beneish M-score −2.38 · accruals −2.1% of assets · 164% of profit arrived as cash · stock comp 7.9% of revenue · share count +0.6% a year. From the latest 10-K (year to Sep 2025) - see the Earnings Quality Screener for how each check is scored.
- Shareholder yield (cash back to owners) +0.4% net Latest fiscal year (2025): dividends 0.0% + buybacks 1.4% − stock comp 1.0%, as a share of today's market cap. Over 14 years its split-adjusted share count fell 0%. See Shareholder Yield Leaders.
- Capital needed to grow (See's test) $4.60 per $1 of new profit · Capital-hungry · but only 16% return on capital Operating profit $26M → $676M, capital needed $1.2B → $4.2B, 2016–2025 (3-year averages); return on capital now 16% before tax. Buffett's See's Candies needed $0.42 per $1 of new profit, FlightSafety $3.20, a typical grower about $5. See Capital-Light Compounders.
- PEG (growth at a reasonable price) 1.51 · Above fair P/E 17.3× ÷ 11.5% a year of growth behind it. 167th lowest of 447 stocks with a usable PEG. Lynch's fair value is a PEG of 1; a very high PEG usually means almost no growth, a very low one a profit spike. See PEG Ratio Ranking.
- Compounder lenses (4) 1 of 4 · misses capital-light, cash back, price Capital-light growth: not cleared (only 16% return on capital); Profit is real: cleared; Cash to owners: not cleared (−0.5% a year net); Fair price (PEG): not cleared (PEG 1.51, over 1.5). See Compounders at a Fair Price, which also lets you move the PEG bar.
- Value trap check Clear
- Munger's Inversion Check 3 flags
- Standing vs. sector peers 6 of 6 measures above the median Compared with the 43 other technology stocks this site tracks: 2 in the top third, 0 in the bottom third.
How does PTC compare with its peers?
6 of 6 measures sit above the median of the 43 other technology stocks tracked here, 2 in the top third.
- P/E ratiolower is cheaper · peer median 26.0× 17.3× ✓9th of 39
- Free-cash-flow yieldhigher is cheaper · peer median 3.8% 4.4% –20th of 44
- Return on equityhigher is better · peer median 24% 33% –20th of 44
- Net marginhigher is better · peer median 16.9% 41.4% ✓6th of 44
- Revenue growthhigher is better, year on year · peer median 19.1% 19.5% –22nd of 44
- Debt / equitylower is safer · peer median 0.60 0.41 –18th of 44
Peers are the stocks this site tracks in the same sector group, not every listed competitor. The bar runs from the weakest peer (left) to the strongest (right); the tick is the middle. Measures that don't apply to a sector (cash-flow yield for banks, debt for financials) are left out.
What would Buffett & Lynch say?
Buffett's checklist is built around durable, profitable businesses bought at sensible prices, and PTC clears it. In its favor: PTC is currently earning a strong return on shareholders' equity, and has kept that profitability up over five years, not just this year, carries a conservative amount of debt relative to equity, converts sales into profit at healthy margins, has grown earnings per share at a solid clip over five years, earns many times its interest expense, so debt service isn't a worry, and trades at a reasonable multiple of owner earnings, his own term for the real cash a business could pay out. Where it comes up short: PTC is trading above what a conservative discounted-cash-flow estimate says it's worth right now.
- ROE (TTM) > 11% ✓
- ROE (5yr avg) > 11% ✓
- Debt/Equity < 0.5 ✓
- Pretax margin > 15% ✓
- EPS growth (5yr) > 7% ✓
- Interest coverage > 5x ✓
- Trading below intrinsic value (DCF) ✕
- Price vs. owner earnings < 25x ✓
- Bonus: returning capital via buybacks FY2025
Lynch looked for growth stories that weren't overpriced for that growth, and PTC falls short of his bar. In its favor: PTC isn't leaning on debt to fund that growth, isn't asking too much even by a fast grower's usual richer multiple, and is generating real cash to back up a fast grower's higher price tag. Where it comes up short: PTC doesn't clear the tighter PEG bar a fast grower needs to justify its pace, and is growing earnings outside the 20-50% band he considered sustainable for a fast grower - either not fast enough to earn the label, or a pace he'd flag as unlikely to hold up.
- PEG < 1 (stricter for fast growers) ✕
- EPS growth 20%-50% ✕
- Debt/Equity < 0.5 ✓
- P/E < 40 ✓
- Price/FCF < 40 ✓
Quantitative approximations of each investor's documented approach, not endorsed by either investor or their estates - commentary, not this site's actual ranking criteria. Buffett never published a numeric checklist: only 2 of his 8 checks here trace to his own documented concepts ("owner earnings," from his 1986 shareholder letter, and "price is what you pay, value is what you get," his case against fixed P/E/P/B ceilings) - the other 6 (ROE, debt, margins, growth, interest coverage) use commonly-cited thresholds that are not numbers he himself published. The 8 hard filters below (plus the Munger check and Graham margin of safety) are this site's real, mechanical screen and are computed completely independently of the checklists above.
Berkshire Hathaway's own filing
Which of the 8 value filters does PTC pass?
- Market Cap > $25B $21.1B
- Trailing P/E < 25 17.25
- PEG Ratio < 1.5 1.51
- Price/Book < 8 6.08
- Price/Sales < 7 7.15
- EPS Growth YoY > -5% -11.9%
- vs 50-day MA (±12%) Not evaluated †
- vs 200-day MA (±12%) Not evaluated †
What is PTC's margin of safety?
-31% on 2026-10-07 → -32% on 2026-10-23 (5 weekly readings).
Where is PTC in its 52-week range?
What is the short interest in PTC?
5,482,418 shares short as of 2026-09-30 (FINRA settlement date). Reported twice a month, so this only changes roughly every two weeks, not daily.
What could go wrong with PTC? Munger's inversion check
"Invert, always invert." Instead of reasons to buy, these are reasons to hesitate, not a verdict, and not everything worth knowing about a business.
- Margin of safety, even in the bull case +22%
- Short interest under 5% of float 5.1%
- Passes most of the 6 fundamental filters 2/6 passed
- Price run-up backed by value, not just momentum +73% off 52wk low
- Debt/equity stable since 2018 0.74 → 0.31
Doesn't cover circle of competence, management quality, or accounting concerns: those need judgment, not data.
How much have PTC shareholders gained per year?
Earnings growth per share plus dividend.
An earnings-based proxy, not a stock-price total return - it doesn't capture multiple expansion/contraction or reinvested dividends. EPS from PTC's own 10-K filings; dividend yield is the current trailing yield on today's price, from the same weekly fetch as the rest of this site.
What do PTC's 10-year financials show?
From PTC's own 10-K filings (SEC EDGAR): up to the last 10 fiscal years. Press any year's bars for the exact figures.
Frequently asked questions about PTC
What kind of company is PTC?
PTC sells software for designing, building and servicing physical products, such as CAD and product-lifecycle tools used by manufacturers, mostly on subscription. Brands and businesses it owns include Creo, Windchill, Onshape, ThingWorx, Kepware and Arena. This site groups it with Technology stocks.
Is PTC trading above or below its DCF value?
At $194.00, PTC trades 32.2% above this site's neutral DCF value of $146.79 per share, a margin of safety of −32.2%. That DCF projects free cash flow for 10 years, with growth starting at 8% and fading to 2.5%, discounted at 10%; it is one set of assumptions, not a forecast. Test your own in the Intrinsic Value Calculator.
How many of this site's 8 value filters does PTC pass?
PTC passes 2 of 8. It passes Trailing P/E < 25 (17.25) and Price/Book < 8 (6.08). It misses Market Cap > $25B ($21.1B), PEG Ratio < 1.5 (1.51), Price/Sales < 7 (7.15) and EPS Growth YoY > -5% (-11.9%). vs 50-day MA (±12%) and vs 200-day MA (±12%) were not evaluated, because the moving-average checks only run on stocks that clear the fundamentals first. The 8-filter list shows every stock that passes all of them.
Are PTC's reported earnings reliable?
This site's earnings-quality check rates PTC Strong · 1 watch. Beneish M-score −2.38 · accruals −2.1% of assets · 164% of profit arrived as cash · stock comp 7.9% of revenue · share count +0.6% a year. From the latest 10-K (year to Sep 2025). Concerns: stock-based compensation (on watch). The five checks are the Beneish M-score (manipulation risk), accruals, cash conversion, stock-based compensation and share dilution; the Earnings Quality Screener shows how each is graded.
When does PTC report earnings next?
PTC's next earnings report is expected on November 4, 2026 after the market closes, with analysts expecting earnings of $1.98 per share. Dates come from the Finnhub earnings calendar and can move. In its last 4 quarters it beat the estimate 3 times, by an average of +26.0%.
How heavily is PTC stock sold short?
As of September 30, 2026, 5.1% of PTC's float was sold short (5,482,418 shares, 3.2 days to cover), down 7.8% from the prior reporting period. FINRA publishes short interest twice a month, so it changes about every two weeks; this site flags anything above 5% of the float.
Where do these numbers come from?
- Financial statements: PTC's 10-K annual report for the year ended Sep 30, 2025, filed Nov 21, 2025 (filing index). Every earlier year in the 10-year financials comes from the company's older 10-K filings, all listed on SEC EDGAR.
- Prices and market data: quotes, P/E and analyst ratings from Finnhub; daily price history and the 52-week range from Twelve Data, both refreshed weekly. Short interest comes from FINRA, reported twice a month.
- How to check a figure: click any number in the card above to see its exact source, and read the Editorial Standards for every rule behind the checks.
About this PTC Inc analysis
This page shows every value-investing check the site runs on PTC Inc (PTC) in one place: the 8 mechanical filters, the Buffett and Lynch checklists, a margin of safety from a disclosed DCF, earnings quality, shareholder yield and how it ranks against its sector peers. The numbers come from SEC filings and public market data, refreshed weekly, and the same rules apply to every stock on the stock list. See Editorial Standards for the sources and the rules, or run your own filters in the stock screener.