PTC
PTC Inc.
Recurring SaaS
★ Quality 61/100Price today
$118.07
what the market pays
Worth
$162.91
calculated cycle value
Price is 28% below its value
charlieapp.co
Price vs Intrinsic Value
The line is the price month by month; the green band marks when it's undervalued (−20% off value). When the price drops in there, the discount is real, not opinion.
Where does the value come from?
Software and subscriptions
$171.09
per share
How it's calculated
PTC Inc. — assistant flagged (2026-06-07). Review note.
Net cash in the bank
cash minus financial debt, per share
Total calculated value
business + cash
How many times the cash flow
Recurring SaaS · vs 26 peers
You pay 17.8x times this business's cash flow; its sector median is 21.9x.
35% below what Charlie thinks it's worth (24.1x) — that gap is your safety margin.
Why Undervalued?
Its free cash flow is $7.09/share × 24.1x multiplier minus $8.18 in negative net cash = $162.91 in intrinsic value. Today's price of $118.07 is 38% below that value — there's a real safety margin to enter.
The price is 28% below the calculated value. There's a real safety margin.
The model asks for a discount to absorb estimate errors. That cushion is here.
If the business disappoints a little, the price should hold near $130.33.
At what price would buying make sense?
Entry zones
🟢 Undervalued
≤$130.33
-20% off Value
🟡 Discounted
≤$154.76
-5% off Value
🟢 Today
$118.07
+38% Valor
Undervalued
Today's price offers a real discount to the calculated value. For the long run, this is the kind of entry that builds wealth.
“Price is what you pay. Value is what you get.”
— Warren Buffett
Model updated · July 2026
The business
PTC is the product's nervous system: once you're in, you don't leave.
PTC sells industrial software to design and manage products: CAD (Creo), PLM (Windchill), and cloud-native SaaS (Onshape, Arena). It charges via recurring subscription — ARR near $2.4B on revenue of $2.7B in FY2025, with 84% gross margin.
PLM software embeds into the customer's engineering workflow: once Windchill manages your product data, switching costs years and expensive errors. That creates real switching costs and high renewals. It's no monopoly — Dassault and Siemens fight for the same ground with serious products.
Revenue history
From $1.8B to $2.7B in 4 years. The business grows steadily.
Where each $100 of sales goes
Revenue $2.7B · FY2025
Of every $100 in sales, $73 goes to costs and operations; $27 is left as net profit (27% margin).
Catalysts and risks
Migration of the installed base to SaaS (Onshape/Arena), lifting ARR and margins toward 2026-2027.
ARR growth ~11% annually with FCF expansion from $0.9B toward more than $1B.
Net debt reduction: $1.2B of debt against $0.2B of cash, with FCF that pays it down fast.
No dominant moat: competes against Siemens and Dassault, both with more muscle in certain verticals.
Revenue tied to industrial capex — a manufacturing recession slows renewals.
The SaaS transition can compress reported growth before the model matures.
Charlie's note
“Sticky software with 84% gross margin and high renewals, but 24x for 11% growth pays for the full moat upfront. Excellent business, an entry that demands patience.”
Analysis · June 2026
So when would be a good price for PTC Inc.?
Today it trades below what we calculate. If you want us to tell you when that changes —or when the value itself moves because the company reported— we will email you.
🔔 Email meFree · no card
Charlie informs, it doesn't advise. No information should be taken as a recommendation to buy or sell.