The applicability of the new iterative numerical algorithm of the pulse-spectrum technique (PST) to remote sensing of the electric permittivity of a stratified medium is demonstrated. Numerical simulations are carried out to test the feasibility and to study the general characteristics of this numerical algorithm without the real measurement data. These numerical results are compared with those obtained by the spectral domain method (SDM) favorably. The effects of the initial guess and the contaminating instrument noise on the accuracy and the efficiency of numerical computation are investigated. Furthermore, it is shown by numerical simulations that this particular numerical algorithm can be applied to SDM as well as to PST.