Schneider Pays 21 Times PTC's Estimated 2027 EBITA, and 13 Times Only If Every Savings Target Is Met

Schneider Electric agreed on October 5 to buy PTC for $205 a share in cash, a $22.6 billion equity value, and the headline price is the least useful number in the announcement. The figure that travels is the multiple: about 21 times PTC's estimated 2027 adjusted EBITA, falling to about 13 times only after the full annualized cost and revenue gains are counted, according to figures relayed by Idéal Investisseur.

The deal is announced, not closed. Both boards approved it, but completion depends on a PTC shareholder vote and regulatory clearances, and Schneider expects it by the third quarter of 2027.

What Schneider is paying, in one table

The equity value is $22.6 billion, or €20.1 billion. Including debt, the enterprise value is $23.7 billion, or €21.1 billion, per AFP coverage on Connaissance des énergies. The price is a 42.3 percent premium to PTC's Friday close of $144.03, according to The Next Web, and a 46.1 percent premium to the 30-day volume-weighted average.

Item	Figure	Basis
Price per share	$205 cash	Schneider announcement, Oct. 5
Equity / enterprise value	$22.6B / $23.7B	Includes PTC debt in the second
PTC 2025 revenue	about €2.4B	Excludes ThingWorx and Kepware
Adjusted EBITA margin	about 40%	2025
Multiple of 2027E EBITA	about 21x, 13x with full gains	Schneider's own figures

Reading the multiple against the revenue

Divide the €21.1 billion enterprise value by €2.4 billion of 2025 revenue and the answer is about 8.8 times sales. That is slightly overstated, because the revenue figure leaves out ThingWorx and Kepware while the enterprise value includes them. A 40 percent margin on €2.4 billion is roughly €960 million of EBITA, so the 21x forward figure on a €21.1 billion enterprise value implies about €1 billion of EBITA in 2027, only slightly above the 2025 level.

The revenue multiple is not high for software at that margin. Jefferies analysts, as relayed by Euronews and AFP, said the price values PTC at a ten-year low on revenue, and that A.I. concerns continue to weigh on software valuations. Euronews, citing MarketWatch and FactSet, put PTC's forward earnings multiple at times at 13.1x in 2026, which is why a 42.3 percent premium can still look inexpensive against PTC's own history.

1. Before cost and revenue gains21 x
2. With full annualized gains13 x

Source: Schneider Electric figures as relayed by Idéal Investisseur, accessed 2026-10-09

How the cash is raised

The cost is about €22 billion in cash, bridged by Morgan Stanley and Société Générale. Schneider plans to refinance with a capital increase of roughly €5 billion to €6 billion and new debt of roughly €16 billion to €17 billion, so debt carries the larger share. Euronews reports bonds of up to €17 billion and new shares of up to €6 billion.

Schneider expects to keep its A-category credit ratings, pending formal agency confirmation. It will also pause share buybacks in 2027 and 2028, while the €600 million planned for 2026 proceeds and the €2.5 billion to €3.5 billion envelope through 2030 is unchanged.

The savings case is €250 million in annual cost savings by the third year and about €800 million in additional revenue. Schneider says earnings per share rise at a low single-digit rate in the first full year and at a medium-to-high single-digit rate once the gains are in place.

The market's verdict on October 5

Schneider's own shares fell about 9 percent to €275.80, per AFP. Euronews reported a drop of more than 9 percent in morning trading in Paris. That is the closest thing to an independent price on the savings claims, and it says investors are discounting them.

PTC shareholders got a 42.3 percent premium and the acquirer's holders got the bill. The Register places the deal after Schneider's $3.1 billion purchase of the industrial data vendor Cognite in June, and quotes Chief Executive Olivier Blum saying that owning both lets Schneider put software-defined automation into power systems early in their design. "This is where we see CAD engineering as a very critical part of the portfolio," he said.

That is the strategic claim to test. PTC sells computer-aided design and product lifecycle tools, and the argument is that design-stage data from PTC and plant data from Cognite can feed datacentre power and cooling products, which have driven the growth of Schneider's market value, the Register reports. The Register adds that Schneider paid roughly $850 million for a 75 percent stake in the liquid-cooling maker Motivair in late 2024, so PTC is a different order of purchase.

What would confirm or contradict it

The next dated event is October 16, when Schneider will publish its third-quarter revenue, earlier than planned because of the deal. After that, the proxy statement PTC files for its shareholder vote will describe how the board arrived at $205 and who else was approached, which is the document that answers whether $205 was the best offer or the first adequate one. No coverage fetched for this story cites that filing yet.

The closing date is the slower test. Until the regulatory clearances arrive, expected by the third quarter of 2027, the 13x figure remains Schneider's forecast and not a result. For another deal where the headline figure and the structure diverge, see the Manus round. See also how Jabil describes the pace of humanoid production, another industrial supplier whose figures arrive without unit counts.