Using the PEG framework with analyst consensus forward EPS growth of 16.2%, PTC Inc. has a fair value of $125.06 based on NTM EPS (FY2026) of $7.73. The current PEG ratio is 1.16.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 16.2% |
| Adjusted Growth (clamped 8–25%) | 16.2% |
| Fair P/E | 16.2x |
| NTM EPS (FY2026) | $7.73 |
| Fair Value | $125.06 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $6.08 | — | — |
| FY2026E | $7.73 | +27.2% | 11 |
| FY2027E | $8.41 | +8.8% | 12 |
| FY2028E | $9.53 | +13.4% | 5 |
3Y Forward EPS CAGR: 16.2%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $476.9M | $4.03 | — |
| FY2022 | $313.1M | $2.65 | -34.2% |
| FY2023 | $245.5M | $2.06 | -22.3% |
| FY2024 | $376.3M | $3.12 | +51.5% |
| FY2025 | $734.0M | $6.08 | +94.9% |
4Y Historical EPS CAGR: 10.8%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.