On July 21, 2026, PTC Inc PTC shares fell 3.2% to $120.77, continuing a challenging year that has seen the stock decline by 30.7% year-to-date and 39.3% over the past year. The stock has traded within a 52-week range of $108.50 to $219.69.
- GF Valueâ„¢ verdict: Current price of $120.77 is 44.0% below GF Valueâ„¢ of $215.59.
- GF Scoreâ„¢ of 81/100 indicates a strong overall rating.
- Notable signal: Insider activity shows that insiders sold $0.1M worth of stock in the last three months, with no buying reported.
Is PTC Overvalued or Undervalued?
PTC Inc's current price of $120.77 is significantly below the GF Valueâ„¢ estimate of $215.59, suggesting that the stock is undervalued by approximately 44.0%. This presents a potential opportunity for investors, as the GF Valuation label indicates that PTC is significantly undervalued. The margin of safety inherent in this valuation could allow for substantial upside if the company's fundamentals align with market expectations in the future. GF Valueâ„¢ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
However, investors should exercise caution. Despite the undervaluation according to GF Valueâ„¢, the stock's recent performance and the momentum rank of 2/10 suggest that the market may be reacting to underlying concerns about PTC's financial health and growth prospects. Therefore, while the valuation appears attractive, potential risks should be considered before making any investment decisions.
How Does PTC's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 11.5x | 46.8x |
| Forward P/E | 14.3x | N/A |
PTC's current P/E ratio of 11.5x is significantly below its 5-year median P/E of 46.8x, indicating that the stock is trading at a much lower valuation than its historical norms. This P/E analysis agrees with the GF Valueâ„¢ verdict, further supporting the view that PTC is undervalued in the current market environment.
What Does PTC's GF Scoreâ„¢ Tell Us?
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 81 |
| Financial Strength | 7/10 |
| Profitability | 9/10 |
| Growth | 9/10 |
| Valuation | 4/10 |
| Momentum | 2/10 |
The GF Scoreâ„¢ of 81/100 indicates that PTC is well-positioned for potential long-term success, particularly in terms of profitability and growth, both rated at 9/10. However, the valuation rank of 4/10 and momentum rank of 2/10 highlight weaknesses that could be concerning for investors. The strong financial strength rating (7/10) offers some reassurance, but the low momentum score suggests a lack of positive price movement in the near term, which may impact investor sentiment.
What Are Insiders Doing with PTC Stock?
In the past three months, insiders at PTC have sold $0.1M worth of shares, with no reported buying activity. This pattern of insider selling could indicate a lack of confidence in the company's near-term prospects or a strategy to capitalize on the current valuation. While insider selling does not always predict future performance, it is a noteworthy signal for potential investors to monitor closely.
What This Means for Investors
Based on the GF Valueâ„¢ assessment, PTC Inc PTC is currently undervalued, presenting a potentially attractive opportunity for long-term investors. However, the recent stock performance, insider selling activity, and low momentum rank suggest that caution is warranted. Investors should weigh these factors carefully when considering their investment strategy.
For the complete analysis, visit the PTC Inc PTC stock page. You can also explore the GF Valueâ„¢ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions
What is PTC's GF Scoreâ„¢?
PTC's GF Scoreâ„¢ is 81/100, indicating a strong overall ranking based on key financial metrics and potential for future performance.
Is PTC overvalued or undervalued?
PTC is currently undervalued, with a GF Valueâ„¢ estimate of $215.59 compared to its current price of $120.77, suggesting a significant upside potential.
What is PTC's P/E ratio?
PTC's P/E ratio is 11.5x, which is substantially below its 5-year median P/E of 46.8x, indicating the stock is trading at a significantly lower valuation compared to its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
