Pegasystems Valuation

PEGA Stock  USD 43.85  3.26  8.03%   
At this time, the company appears to be undervalued. Pegasystems holds a recent Real Value of $50.87 per share. The prevailing price of the company is $43.85. Our model determines the value of Pegasystems from analyzing the company fundamentals such as Return On Equity of 0.57, shares outstanding of 169.04 M, and Operating Margin of 0.25 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Pegasystems' valuation include:
Price Book
8.7143
Enterprise Value
6.5 B
Enterprise Value Ebitda
21.1538
Price Sales
4.263
Forward PE
18.4502
Undervalued
Today
43.85
Please note that Pegasystems' price fluctuation is very steady at this time. Calculation of the real value of Pegasystems is based on 3 months time horizon. Increasing Pegasystems' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Pegasystems is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Pegasystems Stock. However, Pegasystems' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  43.85 Real  50.87 Target  59.91 Hype  43.61
The real value of Pegasystems Stock, also known as its intrinsic value, is the underlying worth of Pegasystems Company, which is reflected in its stock price. It is based on Pegasystems' financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Pegasystems' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
50.87
Real Value
54.49
Upside
Estimating the potential upside or downside of Pegasystems helps investors to forecast how Pegasystems stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Pegasystems more accurately as focusing exclusively on Pegasystems' fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
0.430.710.94
Details
Hype
Prediction
LowEstimatedHigh
39.9943.6147.23
Details
14 Analysts
Consensus
LowTarget PriceHigh
54.5259.9166.50
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Pegasystems' intrinsic value based on its ongoing forecasts of Pegasystems' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Pegasystems' closest peers. If more than one evaluation category is relevant for Pegasystems we suggest using both methods to arrive at a better estimate.

Pegasystems Cash

223.07 Million

Pegasystems Revenue by Product

Pegasystems Total Value Analysis

Pegasystems is at this time forecasted to have valuation of 6.51 B with market capitalization of 7.44 B, debt of 60.83 M, and cash on hands of 275.71 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Pegasystems fundamentals before making equity appraisal based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
6.51 B
7.44 B
60.83 M
275.71 M

Pegasystems Investor Information

About 46.0% of the company outstanding shares are owned by corporate insiders. The company has Price/Earnings To Growth (PEG) ratio of 0.63. Pegasystems last dividend was issued on the 2nd of January 2026. The entity had 2:1 split on the 23rd of June 2025. Based on the key indicators related to Pegasystems' liquidity, profitability, solvency, and operating efficiency, Pegasystems is performing exceptionally good at the present time. It has a great chance to report excellent financial results in March.

Pegasystems Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Pegasystems has an asset utilization ratio of 106.98 percent. This suggests that the Company is making $1.07 for each dollar of assets. An increasing asset utilization means that Pegasystems is more efficient with each dollar of assets it utilizes for everyday operations.
 
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Interest Hikes

Pegasystems Profitability Analysis

Based on Pegasystems' profitability indicators, Pegasystems is performing exceptionally good at the present time. It has a great chance to showcase excellent profitability results in March. Profitability indicators assess Pegasystems' ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1995-03-31
Previous Quarter
43.4 M
Current Value
234.6 M
Quarterly Volatility
41.2 M
 
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Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
At present, Pegasystems' Gross Profit is projected to increase significantly based on the last few years of reporting. The current year's Pretax Profit Margin is expected to grow to 0.17, whereas Gross Profit Margin is forecasted to decline to 0.54.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.540.7586
Way Down
Very volatile
For Pegasystems profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Pegasystems to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Pegasystems utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Pegasystems's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Pegasystems over time as well as its relative position and ranking within its peers.

Pegasystems Earnings per Share Projection vs Actual

The next projected EPS of Pegasystems is estimated to be 0.7066 with future projections ranging from a low of 0.427 to a high of 0.94. Pegasystems' most recent 12-month trailing earnings per share (EPS TTM) is at 2.13. Please be aware that the consensus of earnings estimates for Pegasystems is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
Pegasystems is projected to generate 0.7066 in earnings per share on the 31st of March 2026. Pegasystems earnings estimates show analyst consensus about projected Pegasystems EPS (Earning Per Share). It derives the highest and the lowest estimates based on Pegasystems' historical volatility. Many public companies, such as Pegasystems, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

Pegasystems Earnings Estimation Breakdown

The calculation of Pegasystems' earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Pegasystems is estimated to be 0.7066 with the future projection ranging from a low of 0.427 to a high of 0.94. Please be aware that this consensus of annual earnings estimates for Pegasystems is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
0.76
0.43
Lowest
Expected EPS
0.7066
0.94
Highest

Pegasystems Earnings Projection Consensus

Suppose the current estimates of Pegasystems' value are higher than the current market price of the Pegasystems stock. In this case, investors may conclude that Pegasystems is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Pegasystems' stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 31st of March 2026Current EPS (TTM)
1145.25%
0.76
0.7066
2.13

Pegasystems Ownership Allocation

Pegasystems owns a total of 169.04 Million outstanding shares. Over half of Pegasystems' outstanding shares are owned by third-party entities. These third-party entities are typically referred to as corporate investors that secure positions in a given instrument to benefit from reduced trade commissions. Also note that almost ten million five hundred fourteen thousand five hundred nineteen invesors are currently shorting Pegasystems expressing very little confidence in its future performance.

Pegasystems Profitability Analysis

The company reported the previous year's revenue of 1.75 B. Net Income was 393.44 M with profit before overhead, payroll, taxes, and interest of 1.32 B.

Pegasystems Past Distributions to stockholders

Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Pegasystems' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Pegasystems and how it compares across the competition.

About Pegasystems Valuation

The stock valuation mechanism determines Pegasystems' current worth on a weekly basis. Our valuation model uses a comparative analysis of Pegasystems. We calculate exposure to Pegasystems's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Pegasystems's related companies.
Last ReportedProjected for Next Year
Gross Profit1.3 B1.4 B
Pretax Profit Margin 0.16  0.17 
Operating Profit Margin 0.15  0.16 
Net Profit Margin 0.23  0.24 
Gross Profit Margin 0.76  0.54 
Pegasystems' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Pegasystems' value is low or high relative to the company's performance and growth projections. Determining the market value of Pegasystems can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Pegasystems represents a small ownership stake in the entity. As a stockholder of Pegasystems, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Pegasystems Dividends Analysis For Valuation

The current year's Dividend Paid And Capex Coverage Ratio is expected to grow to 34.40, whereas Dividends Paid is projected to grow to (14.7 M). . At present, Pegasystems' Retained Earnings are projected to increase significantly based on the last few years of reporting. The current year's Earnings Yield is expected to grow to 0.04, whereas Retained Earnings Total Equity is projected to grow to (83.6 M).
Last ReportedProjected for Next Year
Dividends Paid-15.4 M-14.7 M
Dividend Payout Ratio 0.04  0.04 
Dividend Paid And Capex Coverage Ratio 32.76  34.40 
There are various types of dividends Pegasystems can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Pegasystems shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Pegasystems directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Pegasystems pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Pegasystems by the value of the dividends paid out.

Pegasystems Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
Common Stock Shares Outstanding184.8 M
Quarterly Earnings Growth Y O Y1.043
Forward Price Earnings18.4502

Pegasystems Current Valuation Indicators

Valuation refers to the process of determining the present value of Pegasystems and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Pegasystems we look at many different elements of the entity such as Pegasystems's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Pegasystems, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Pegasystems' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Pegasystems' worth.

Complementary Tools for Pegasystems Stock analysis

When running Pegasystems' price analysis, check to measure Pegasystems' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Pegasystems is operating at the current time. Most of Pegasystems' value examination focuses on studying past and present price action to predict the probability of Pegasystems' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Pegasystems' price. Additionally, you may evaluate how the addition of Pegasystems to your portfolios can decrease your overall portfolio volatility.
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