PTC Inc. scores 89 for management and 96 for moat. The management score rests on a return on invested capital of 14.4% and a gross margin of 83.8% — figures that describe a business turning capital into profit efficiently. Debt sits at 0.36x equity.
The price anchors are built on deliberately conservative assumptions. Growth is modelled at 13.4% a year, the rate measured from the filings. The exit multiple assumed is 26.9x. That produces an intrinsic value of $242.52, a 10-CAP price of $81.88 and a payback time price of $120.39, with the value zone set at the highest of the three, $121.26. Today's price of $146.47 sits 21% above it.
A wonderful business at the wrong price is still the wrong price. PTC Inc. scores well on the business and poorly on the entry point, which is the most common shape in a long bull market.
| Price | $146.47 |
| Market cap | $16.9B |
| P/E ratio | 14.2x |
| Return on invested capital | 14.4% |
| Gross margin | 83.8% |
| Debt to equity | 0.36x |
| Free cash flow yield | 3.5% |
| Growth rate used | 13.4% |
| Growth rate measured | 13.0% |
| Exit multiple assumed | 26.9x |
| Company | Moat | Buy price |
| Dynatrace Inc (DT) | 78 | $30.98 |
| Ss&C Technologies Holdings (SSNC) | 82 | $76.76 |
| Fair Isaac (FICO) | 80 | $528.01 |
| Tyler Technologies (TYL) | 91 | $271.27 |
Every number above is built on assumptions that can be changed. In Moatly you can move the growth rate, the exit multiple and the margin of safety and watch every figure recalculate, so you are testing your own view of PTC Inc. rather than accepting ours.