PTC Inc. (PTC) is a publicly traded company in the Technology — Software - Application industry listed on NASDAQ. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
PTC Inc. operates as a global provider of software and services, with its market presence extending across the Americas, Europe, and the Asia Pacific regions. The company's business is organized into two primary divisions: Software Products and Professional Services. Among its key offerings is the ThingWorx platform, which furnishes enterprises with a suite of functionalities to drive digital innovation across their operations.
Is PTC Inc. stock overvalued or undervalued in 2026?
PTC Inc. (PTC) trades at 18.9× earnings (P/E), against a median of 32.0× across the 314 technology companies above $2bn in Kaplio's universe. Without the result from outside the business (27 % of its pre-tax income over 12 months), it trades at 25.9 times its earnings; above the 25 we take as the limit. It is expensive.
Kaplio overview: PTC Inc.
Market cap $21B · 52 weeks $112 – $199 (2 % below the high) · P/E 18.9× · 2027 est. P/E 21.9× · Dividend none · Next earnings November 4, 2026 · expected EPS $1.97 · Closing price, Oct 30 · accounts published Jul 29.
- Valuation: 25.9× ex one-offs (expensive).
- Business: ROIC 17 % (fair).
- Balance sheet: Net debt/EBITDA 1.0× (solid).
- Earnings: 8 of 8 (uneven).
It trades at 18.9 times its last-12-month earnings, but 27 % of its pre-tax income came from outside the business. Without it, at 25.9 times; above the 25 we take as the limit. It is expensive.
These are its accounting earnings for the last 12 months without the result from outside the business, not what analysts expect: that is why it does not match the forward P/E you will see elsewhere.
Why is PTC Inc.'s P/E so low?
PTC Inc. trades at a P/E of 18.9× on reported earnings, but over the last 12 months 27 % of its pre-tax income ($413M) came from outside the business, such as revaluations or sales of stakes in other companies. It is real money, but it doesn't repeat every year. Without that part, its P/E would be about 25.9×. On analysts' expected earnings for 2027, its P/E is 21.9×. Kaplio's calculation from the official quarterly accounts filed up to the quarter ended June 30, 2026.
| Quarter ended | From the business | Outside the business | Net income |
|---|---|---|---|
| September 30, 2025 | $434M | −$5.5M | $348M |
| December 31, 2025 | $221M | −$18.2M | $167M |
| March 31, 2026 | $296M | $451M | $591M |
| June 30, 2026 | $167M | −$14.1M | $119M |
What matters in technology: 6 of 7 pass
- 3y revenue growth 11.4 %, fails.
- Rule of 40 (SaaS only) 43, passes.
- Gross margin 83.8 %, passes.
- FCF / Revenue 31.3 %, passes.
- ROIC 17.1 %, passes.
- SBC / Revenue 7.9 %, passes.
- Net debt / EBITDA 1.0×, passes.
- EV/EBITDA vs own 5y 13.4×, info.
Against its peers (reference peers) — PTC Inc.: P/E 18.9×; EV/EBITDA 18.0×; ROIC 17.1 %; $21.2B. Bentley Systems, Incorporated (P/E 45.4×; EV/EBITDA 27.1×; ROIC 11.2 %; $11.9B), Autodesk, Inc. (P/E 32.3×; EV/EBITDA 22.4×; ROIC 21.2 %; $52.2B), Trimble Inc. (P/E —; EV/EBITDA 58.9×; ROIC 9.2 %; $15.1B).
Kaplio's reading: PTC Inc.
Updated on November 1, 2026 · accounts published on July 29, 2026
A highly profitable software business with record margins and a solid balance sheet
PTC trades at a P/E of 18.9 over the last 12 months, about 25.9 without one-off gains, against a sector median of 32.0.
- Is PTC expensive or cheap? P/E of 18.9 over the last 12 months versus a sector median of 32.0; without one-off gains it would be about 25.9.
- How is the business doing? Operating margin of 38 % over the last 12 months, against an average of 15 % across fiscal 2014-2025.
- Is PTC growing with real cash or by diluting shareholders? Free cash flow was 31 % of revenue in fiscal 2025, and stock compensation was 7.9 %, under the 10 % healthy limit.
- How strong is the balance sheet? Net debt of $10.52 per share in fiscal 2025, just 5.4 % of the share price and 1.0× EBITDA.
- What to expect from the next earnings? Results due November 4, 2026; analysts expect EPS of $1.97, and PTC has beaten estimates in 8 of the last 8 quarters.
Is PTC expensive or cheap?
Over the last 12 months PTC trades at a P/E of 18.9, well below the 32.0 median of its 314-company sector. Part of that discount comes from one-off gains. 27 % of pre-tax profit ($413 million) came from outside the business, such as revaluations or sales of stakes in other companies. Without that money the P/E would be about 25.9, and on the EPS analysts expect for 2027 it is 21.9. EV/EBITDA excluding those gains is 18.0. The free cash flow yield is a modest 3.2 %. The stock sits 2 % below its 52-week high of $198.54 after falling 1 % over 12 months.
How is the business doing?
Revenue grew 19 % over the last 12 months and EPS 95 %. Part of that EPS jump rests on the one-off gains described above, which also lift the net margin to 41 %. The operating margin is the cleaner signal: 38 % over the last 12 months against an average of 15 % across fiscal 2014-2025, and fiscal 2025 was the highest of those 12 years. ROIC of 17.1 % over the last 12 months is 8.9 points above the sector median of 8.2 %. The caveat is history: ROIC topped 10 % in only 2 of the last 10 fiscal years, with a low of −10.8 % in 2017.
Is PTC growing with real cash or by diluting shareholders?
In technology, generic ratios fall short. Growth, pricing power and dilution from stock-based pay decide whether profits reach shareholders. PTC turned 31 % of revenue into free cash flow in fiscal 2025, above the 20 % healthy mark, and its 84 % gross margin clears the 70 % bar for software. Stock compensation equals 7.9 % of revenue, under the 10 % healthy ceiling. Its Rule of 40 score is 43, above the elite line of 40. The weak spot is growth per share: revenue per share rose 11.4 % a year over fiscal 2022-2025, short of the 15 % healthy pace.
How strong is the balance sheet?
Debt is modest for a software company. Net debt was $10.52 per share in fiscal 2025 ($12.06 of debt minus $1.54 of cash). That equals 5.4 % of the current price and 1.0× EBITDA, inside the 1.5× tolerable limit for software. Debt to equity is 0.46 over the last 12 months. An Altman Z of 6.6 puts it in the safe zone, and a Piotroski score of 8 out of 9 also points to financial health. Liquidity is the one tight number: a current ratio of 1.03 means short-term assets barely cover short-term obligations.
What to expect from the next earnings?
PTC reports on November 4, 2026, and analysts expect EPS of $1.97 for the quarter. Its track record is consistent: it beat EPS estimates in each of the last 8 quarters. The latest beat was thin, though: $1.58 against $1.57 expected on July 29, 2026 (+0.6 %). Expectations for 2027 are stable. Consensus EPS barely moved in the last 30 days, from $8.93 to $8.92 among 11 analysts, and revenue estimates hardly changed either. Of the 33 analysts covering the stock, 15 rate it a buy, 15 a hold and 3 a sell.
How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.
Investor methods verdict
Would Buffett approve PTC today?
The Buffett Method would not approve PTC today: it fails its quality rules. Business quality: 72 out of 100 (price not included). Kaplio assessment with data from the week of 2026-10-26; not investment advice.
Would Peter Lynch approve PTC today?
The Lynch Method approves PTC today: P/E 18.9 with 40% growth; it asks that the P/E not exceed growth. Business quality: 63 out of 100 (price not included). Lynch classifies it as a stalwart. Kaplio assessment with data from the week of 2026-10-26; not investment advice.
Profitability
| Return on Equity | 32.64% |
| Return on Invested Capital | 17.10% |
| Return on Assets | 18.79% |
| Gross Margin | 84.09% |
| Operating Margin | 37.81% |
| Net Margin | 41.43% |
Financial Health
| Debt / Equity | 0.46 |
| Current Ratio | 1.03 |
| Piotroski F-Score | 8 |
| Altman Z-Score | 6.61 |
Price Performance
| 1 month | +35.76% |
| 3 months | +39.82% |
| Year-to-date | +12.24% |
| 1 year | -1.51% |
| 3 years | +33.64% |
| 5 years | +54.69% |
| 10 years | +352.12% |
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Explore sector: Technology · Software - Application
More sections of PTC: Financials · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
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