PTC Inc.

Methodology

PTC's industrial software for CAD, PLM, and IoT generates increasingly predictable subscription revenue as the business transitions from perpetual licensing. Recurring revenue and customer retention create earnings visibility. The calculation works well for this industrial software provider after SaaS transition maturity with clear contract value trajectories.

Methodology

PTC typically trades at premium PEG ratios reflecting subscription model economics, market leadership in industrial digital transformation, and IoT platform potential. While expensive versus traditional industrial software, recurring revenue characteristics justify valuations. Compare to industrial software peers and PTC's historical range considering SaaS transition progress.

Methodology

PTC pays no dividend, making PEGY equal to PEG as management prioritizes R&D investments and strategic positioning in industrial digital transformation. Capital allocation focuses on product development and market leadership. For this industrial software company, ARR growth and net retention rates matter far more than current shareholder income.