A Look at PTC (PTC) Valuation Following Expanded Collaboration With Garrett Motion

PTC (PTC) has just announced an expanded collaboration with Garrett Motion, one of its important clients. Garrett is deepening its commitment with PTC by adding new SaaS platforms, including Codebeamer+ and Windchill+, to its toolkit.

See our latest analysis for PTC.

PTC’s expansion with Garrett Motion comes amid a year of shifting share price momentum. While its recent deal highlights strategic execution, the 1-year total shareholder return stands at -12.7%. This reflects shaky sentiment compared to its strong 3- and 5-year total returns of 44% and 57% respectively.

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With this renewed momentum, the central question emerges: Is PTC trading at a discount that reflects recent headwinds, or has the market efficiently priced in the company's future growth and client wins, leaving little room for upside?

Most Popular Narrative: 19.5% Undervalued

PTC’s last close of $174.88 stands notably below the most popular narrative’s fair value estimate of $217.17. This difference sets the stage for fresh debate over value and growth expectations.

PTC is seeing accelerating adoption of AI-driven capabilities across its product suite (e.g., Creo 12, Arena Supply Chain Intelligence), positioning it to capitalize on manufacturers' need for advanced product data and lifecycle management. This leverages the growing demand for automation and smart connected products and should support expansion in ARR and future top-line growth.

Read the complete narrative.

Curious about the numbers behind this bullish outlook? The narrative hinges on ambitious projections for growth, margins, and future earnings power. One key financial leap underpins the calculated fair value. Want to know which forecasted metric could make or break this case? Read on to see what drives the expert optimism.

Result: Fair Value of $217.17 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent global policy uncertainty and challenges related to SaaS revenue recognition could create near-term headwinds. These factors may potentially challenge the positive narrative around PTC’s growth.

Find out about the key risks to this PTC narrative.

Build Your Own PTC Narrative

If you see the numbers differently or want to dig into the data yourself, it’s easy to craft your unique take in just minutes. Do it your way

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding PTC.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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