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PTC, INC (PTC) — WACC Analysis

WACC Breakdown

PTC, INC (PTC) has a weighted average cost of capital (WACC) of 8.7%. The cost of equity is 9.2%, derived from a beta of 1.00 and a risk-free rate of 5.0%. The after-tax cost of debt is 3.6%. The capital structure is 91.2% equity and 8.8% debt.

Interpretation

A WACC of 8.7% is moderate, reflecting the market's balanced risk assessment of PTC, INC.

Investors can compare PTC's WACC of 8.7% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

PTC WACC: 8.70% for PTC, INC

Current inputs imply a 9.19% cost of equity and a 4.59% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

PTC, INC Common Stock (PTC) WACC Results
Weighted Average Cost of Capital
8.70%
Cost of Equity
9.19%
Risk-Free Rate4.96%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
3.63%
Pre-Tax Cost of Debt4.59%
Tax Rate21.00%
Tax Shield0.96%
Capital Structure
Equity: 91.24%($14.83B)
Debt: 8.76%($1423.32M)
Equity Component
8.39%
91.24% × 9.19%
Debt Component
0.32%
8.76% × 3.63%

PTC, INC (PTC) WACC in context

PTC, INC (PTC) currently screens with an estimated WACC of 8.70%. That blends a 9.19% cost of equity, a 4.59% pre-tax cost of debt, and a 91.24% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What PTC WACC implies

A 8.70% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates PTC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 91.24% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.