Progress Software Valuation

PRGS Stock  USD 40.05  0.94  2.29%   
At this time, the company appears to be undervalued. Progress Software holds a recent Real Value of $46.64 per share. The prevailing price of the company is $40.05. Our model determines the value of Progress Software from analyzing the company fundamentals such as Shares Outstanding of 42.11 M, operating margin of 0.17 %, and Return On Equity of 0.16 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Progress Software's valuation include:
Price Book
3.6026
Enterprise Value
B
Enterprise Value Ebitda
10.0538
Price Sales
1.7987
Forward PE
7.0323
Undervalued
Today
40.05
Please note that Progress Software's price fluctuation is very steady at this time. Calculation of the real value of Progress Software is based on 3 months time horizon. Increasing Progress Software's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Progress stock is determined by what a typical buyer is willing to pay for full or partial control of Progress Software. Since Progress Software is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Progress Stock. However, Progress Software's 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  40.05 Real  46.64 Target  65.5 Hype  40.08 Naive  39.36
The intrinsic value of Progress Software's 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, news, and other external factors that may influence Progress Software's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
46.64
Real Value
48.97
Upside
Estimating the potential upside or downside of Progress Software helps investors to forecast how Progress 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 Progress Software more accurately as focusing exclusively on Progress Software's fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
1.371.401.46
Details
Hype
Prediction
LowEstimatedHigh
37.7540.0842.41
Details
Potential
Annual Dividend
LowForecastedHigh
0.170.170.18
Details
7 Analysts
Consensus
LowTarget PriceHigh
59.6165.5072.71
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 Progress Software's intrinsic value based on its ongoing forecasts of Progress Software's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Progress Software's closest peers.

Progress Software Cash

127.24 Million

Progress Revenue by Product

Progress Software Total Value Analysis

Progress Software is at this time forecasted to have valuation of 3.01 B with market capitalization of 1.76 B, debt of 850.99 M, and cash on hands of 224.86 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 Progress Software fundamentals before making equity appraisal based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
3.01 B
1.76 B
850.99 M
224.86 M

Progress Software Investor Information

About 98.0% of the company shares are owned by institutional investors. The book value of Progress Software was at this time reported as 11.3. The company has Price/Earnings To Growth (PEG) ratio of 1.41. Progress Software last dividend was issued on the 30th of August 2024. The entity had 3:2 split on the 31st of January 2011. Based on the measurements of operating efficiency obtained from Progress Software's historical financial statements, Progress Software may be sliding down financialy. It has an above-average chance of going through some form of financial crunch next quarter.
Current ValueLast YearChange From Last Year 10 Year Trend
Total Cash From Operating Activities284 M270.5 M
Sufficiently Up
Slightly volatile

Progress Software Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Progress Software has an asset utilization ratio of 39.79 percent. This implies that the Company is making $0.4 for each dollar of assets. An increasing asset utilization means that Progress Software is more efficient with each dollar of assets it utilizes for everyday operations.
 
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Covid
 
Interest Hikes

Progress Software Profitability Analysis

Based on the measurements of profitability obtained from Progress Software's financial statements, Progress Software's profitability may be sliding down. It has an above-average chance of reporting lower numbers next quarter. Profitability indicators assess Progress Software's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1989-02-28
Previous Quarter
19.4 M
Current Value
25.7 M
Quarterly Volatility
10.6 M
 
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Yuan Drop
 
Covid
 
Interest Hikes
At this time, Progress Software's Gross Profit is comparatively stable compared to the past year. Pretax Profit Margin is likely to gain to 0.14 in 2026, whereas Operating Profit Margin is likely to drop 0.11 in 2026.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.610.73
Fairly Down
Pretty Stable
For Progress Software profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Progress Software to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Progress Software utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Progress Software's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Progress Software over time as well as its relative position and ranking within its peers.

Progress Software Earnings per Share Projection vs Actual

The next projected EPS of Progress Software is estimated to be 1.4049 with future projections ranging from a low of 1.37 to a high of 1.46. Progress Software's most recent 12-month trailing earnings per share (EPS TTM) is at 1.66. Please be aware that the consensus of earnings estimates for Progress Software 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
Progress Software is projected to generate 1.4049 in earnings per share on the 31st of May 2026. Progress Software earnings estimates show analyst consensus about projected Progress Software EPS (Earning Per Share). It derives the highest and the lowest estimates based on Progress Software's historical volatility. Many public companies, such as Progress Software, 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.

Progress Software Earnings Estimation Breakdown

The calculation of Progress Software's 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 Progress Software is estimated to be 1.4049 with the future projection ranging from a low of 1.37 to a high of 1.46. Please be aware that this consensus of annual earnings estimates for Progress Software is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
0.0
1.37
Lowest
Expected EPS
1.4049
1.46
Highest

Progress Software Earnings Projection Consensus

Suppose the current estimates of Progress Software's value are higher than the current market price of the Progress Software stock. In this case, investors may conclude that Progress Software 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 Progress Software's stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 31st of May 2026Current EPS (TTM)
675.97%
0.0
1.4049
1.66

Progress Software Ownership Allocation

The majority of Progress Software outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Progress Software to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Progress Software. Please pay attention to any change in the institutional holdings of Progress Software as this could imply that something significant has changed or is about to change at the company.

Progress Software Profitability Analysis

The company reported the previous year's revenue of 977.83 M. Net Income was 73.13 M with profit before overhead, payroll, taxes, and interest of 831.48 M.

Progress Software Past Distributions to stockholders

About Progress Software Valuation

The stock valuation mechanism determines Progress Software's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Progress Software based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Progress Software. We calculate exposure to Progress Software's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Progress Software's related companies.
Last ReportedProjected for Next Year
Gross Profit908.8 M954.2 M
Pretax Profit Margin 0.10  0.14 
Operating Profit Margin 0.14  0.11 
Net Profit Margin 0.07  0.07 
Gross Profit Margin 0.73  0.61 

Progress Software Quarterly Retained Earnings

127.37 Million

Progress Software's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Progress Software's value is low or high relative to the company's performance and growth projections. Determining the market value of Progress Software can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Progress Software represents a small ownership stake in the entity. As a stockholder of Progress, 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.

Progress Software Dividends Analysis For Valuation

Please note that Progress Software has scaled down on payment of dividends at this time. At this time, Progress Software's Retained Earnings are comparatively stable compared to the past year. Price Earnings To Growth Ratio is likely to gain to 3.07 in 2026, whereas Retained Earnings Total Equity is likely to drop slightly above 89.7 M in 2026.
There are various types of dividends Progress Software 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 Progress 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 Progress Software directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Progress pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Progress Software by the value of the dividends paid out.

Progress Software Growth Indicators

Investing in growth stocks can be very risky. If the company such as Progress Software does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding44 M
Quarterly Earnings Growth Y O Y21.357
Forward Price Earnings7.0323

Progress Software Current Valuation Indicators

Progress Software's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Progress Software's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Progress Software, 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 Progress Software's 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 Progress Software's worth.

Additional Tools for Progress Stock Analysis

When running Progress Software's price analysis, check to measure Progress Software's 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 Progress Software is operating at the current time. Most of Progress Software's value examination focuses on studying past and present price action to predict the probability of Progress Software's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Progress Software's price. Additionally, you may evaluate how the addition of Progress Software to your portfolios can decrease your overall portfolio volatility.