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PTC (PTC) Free Cash Flow per Share

: $5.00 (TTM As of Dec. 2023)
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PTC's Free Cash Flow per Share for the three months ended in Dec. 2023 was $1.52. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $5.00.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of PTC was 32.10% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 41.30% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 23.80% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 10.30% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the FCF Growth Rate using Free Cash Flow per Share data.

The historical rank and industry rank for PTC's Free Cash Flow per Share or its related term are showing as below:

PTC' s 3-Year FCF Growth Rate Range Over the Past 10 Years
Min: -59.7   Med: 14.2   Max: 102
Current: 41.3

During the past 13 years, PTC's highest 3-Year average Free Cash Flow per Share Growth Rate was 102.00% per year. The lowest was -59.70% per year. And the median was 14.20% per year.

PTC's 3-Year FCF Growth Rate is ranked better than
85.28% of 1793 companies
in the Software industry
Industry Median: 4.4 vs PTC: 41.30

PTC Free Cash Flow per Share Historical Data

The historical data trend for PTC's Free Cash Flow per Share can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

PTC Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Free Cash Flow per Share
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.88 1.74 2.90 3.46 4.91

PTC Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Free Cash Flow per Share Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.45 1.74 1.38 0.36 1.52

Competitive Comparison

For the Software - Application subindustry, PTC's Price-to-Free-Cash-Flow, along with its competitors' market caps and Price-to-Free-Cash-Flow data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


PTC Price-to-Free-Cash-Flow Distribution

For the Software industry and Technology sector, PTC's Price-to-Free-Cash-Flow distribution charts can be found below:

* The bar in red indicates where PTC's Price-to-Free-Cash-Flow falls into.



PTC Free Cash Flow per Share Calculation

Free Cashflow per Share is the amount of Free Cashflow per outstanding share of the company's stock.

Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company.

Note: GuruFocus does not calculate Free Cash Flow Per Share when Capital Expenditure is 0.

PTC's Free Cash Flow Per Share for the fiscal year that ended in Sep. 2023 is calculated as

Free Cash Flow Per Share(A: Sep. 2023 )
=(Cash Flow from Operations+Capital Expenditure)/Shares Outstanding (Diluted Average)
=(610.861+-24.614)/119.334
=586.247/119.334
=4.91

PTC's Free Cash Flow Per Share for the quarter that ended in Dec. 2023 is calculated as

Free Cash Flow Per Share(Q: Dec. 2023 )
=(Cash Flow from Operations+Capital Expenditure)/Shares Outstanding (Diluted Average)
=(187.341+-4.563)/120.250
=182.778/120.250
=1.52

Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $5.00

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


PTC  (NAS:PTC) Free Cash Flow per Share Explanation

Free Cash Flow is very close to Warren Buffett's definition of Owner's Earnings, except that in Warren Buffett's Owner's Earnings, the spending for Property, Plant, and Equipment is only for maintenance (replacement), while in the Free Cash Flow calculation, the cost of new Property, Plant, and Equipment due to business expansion is also deducted. There, Free Cash Flow is more conservative than Owner's Earnings.

In Don Yacktman's calculation of forward rate of return, he uses Free Cash Flow for the calculation. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation.

This is what Yacktman said in his March 2012 interview - when the S&P 500 was at 1400:

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over seven years. The reason we use seven years is because research shows that seven years is the length of the typical business cycle.

Therefore, as of Sep23, PTC's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Sep23)=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=3.12914286/174.96+0.2
=21.79 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Free Cash Flow within a report period can be affected by management's decisions of capital spending. Therefore, it is important to look at long term when it comes to Free Cash Flow.


PTC Free Cash Flow per Share Related Terms

Thank you for viewing the detailed overview of PTC's Free Cash Flow per Share provided by GuruFocus.com. Please click on the following links to see related term pages.


PTC (PTC) Business Description

Industry
Traded in Other Exchanges
Address
121 Seaport Boulevard, Boston, MA, USA, 02210
PTC offers high-end computer-assisted design (Creo) and product lifecycle management (Windchill) software as well as Internet of Things and AR industrial solutions. Founded in 1985, PTC has 28,000 customers, with revenue stemming mostly from North America (45%) and Europe (40%).
Executives
Robert Schechter director C/O NMS COMMUNICATIONS, 100 CROSSING BLVD, FRAMINGHAM MA 01702
Kristian Talvitie officer: Chief Financial Officer 121 SEAPORT BOULEVARD, BOSTON MA 02210
Michael Ditullio officer: EVP 121 SEAPORT BLVD, BOSTON MA 02210
Von Staats Aaron C officer: SVP, General Counsel and Clerk C/O PARAMETRIC TECHNOLOGY CORP, 140 KENDRICK ST, NEEDHAM MA 02494
Catherine Kniker officer: Chief Strategy Officer C/O 121 SEAPORT BOULEVARD, BOSTON MA 02210
Paul A Lacy director KRONOS INCORP, 297 BILLERICA RD, CHELMSFORD MA 01824
Lathan Corinna director 140 KENDRICK STREET, NEEDHAM MA 02494
Blake D. Moret director C/O ROCKWELL AUTOMATION, INC., 1201 SOUTH SECOND STREET, MILWAUKEE WI 53204
Neil Barua director, officer: CEO-Elect C/O SERVICEMAX, INC., 4450 ROSEWOOD DRIVE #200, PLEASANTON CA 94588
Janesh Moorjani director C/O ELASTIC N.V., 800 WEST EL CAMINO REAL, SUITE 350, MOUNTAIN VIEW CA 94040
Michal Katz director 42 ROCK SHELTER ROAD, WACCABUC NY 10597
James E Heppelmann officer: EVP, Chief Product Officer C/O PARAMETRIC TECHNOLOGY CORP, 140 KENDRICK ST., NEEDHAM MA 02494
Amarpreet Hanspal director AUTODESK, INC., 111 MCINNIS PARKWAY, SAN RAFAEL CA 94903
Phillip M Fernandez director C/O MARKETO, INC., 901 MARINER'S ISLAND BLVD., SUITE 500, SAN MATEO CA 94404
Mark D Benjamin director NUANCE COMMUNICATIONS, INC., 1 WAYSIDE ROAD, BURLINGTON MA 01803

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