PTC Inc. (PTC) DCF Valuation
Transparent DCF models put PTC Inc. (PTC)'s fair value in a range of $82.92 – $157.03 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $136.97 sits within that range — roughly fairly valued on these assumptions.
Reverse DCF: at today's $136.97, the market is pricing in roughly +11.3%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +21.9%. The price assumes a slowdown from its track record — a potential value signal if growth holds.
Current Price
$136.97
Fair-Value Range
$82.92 – $157.03
Market-Implied Growth
+11.3%/yr
vs +21.9% 5Y actual
PTC DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $646.0M · 0.12B shares · net debt $1.0B
Estimated Fair Value
$82.92
-39.5% vs $136.97
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $136.97; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $105 | $111 | $118 | $126 | $136 |
| 9.0% | $89.10 | $93.10 | $97.71 | $103 | $109 |
| 10.0% | $76.86 | $79.70 | $82.92 | $86.60 | $90.84 |
| 11.0% | $67.23 | $69.32 | $71.64 | $74.26 | $77.23 |
| 12.0% | $59.48 | $61.04 | $62.77 | $64.69 | $66.84 |
About PTC Inc.
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. These solutions are characterized by ease of creation and deployment, scalability for future demands, and their ability to accelerate value realization for customers. Another significant product, Vuforia, enables the visualization of digital information within real-world contexts and facilitates the development of augmented reality applications. PTC also delivers Onshape, a cloud-based product development platform that seamlessly integrates computer-aided design with robust data management, collaborative tools, and real-time analytical capabilities. For product lifecycle management (PLM), the company provides Arena, a solution designed to empower product teams to collaborate virtually from any location, and Windchill, another comprehensive PLM software. Furthermore, Creo stands as a leading 3D CAD technology, supporting the digital design, validation, and refinement of product models. Additional specialized software includes Integrity, an application lifecycle management solution, and Servigistics, focused on optimizing service parts management. Beyond its software portfolio, PTC offers an extensive array of professional services, encompassing consulting, implementation support, training programs, cloud solutions, and ongoing licensing and technical assistance. Established in 1985 and headquartered in Boston, Massachusetts, the company was originally named Parametric Technology Corporation before officially rebranding as PTC Inc. in January 2013.
- Sector
- Technology
- Industry
- Software - Application
- CEO
- Neil Barua