Is PTC, Inc. overvalued or undervalued?

As of 30 April 2025, the valuation grade for PTC, Inc. has moved from fair to expensive, indicating a shift in its market perception. The company is currently overvalued, with a P/E ratio of 46, significantly higher than its peer Zoom Video Communications, which has a P/E of 22.48. Additionally, PTC's EV to EBITDA stands at 27.94, while its peer's is much lower at 14.97, further highlighting the disparity in valuation between PTC and its competitors.
PTC, Inc. also exhibits a price to book value of 6.03 and a PEG ratio of 0.88, which suggests that despite some growth potential, the stock is priced excessively compared to its earnings growth. The company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -9.47% compared to the index's 2.44%. Overall, these metrics and comparisons suggest that PTC, Inc. is overvalued in the current market environment.