PEGA Valuation

Pegasystems Inc

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54.210

+0.6(1.119%)1D

Overview
Forecast
Valuation
Earnings

PEGA Relative Valuation

PEGA's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, PEGA is overvalued; if below, it's undervalued.

Historical Valuation

Pegasystems Inc (PEGA) is now in the Fair zone, suggesting that its current forward PS ratio of 5.28 is considered Fairly compared with the five-year average of 797.84. The fair price of Pegasystems Inc (PEGA) is between 30.13 to 67.45 according to relative valuation methord.

Relative Value

Fair Zone

30.13-67.45

Current Price：54.21

Fair

28.84

Trailing

Forward

20.68

EV/EBITDA

Pegasystems Inc. (PEGA) has a current EV/EBITDA of 20.68. The 5-year average EV/EBITDA is 76.17. The thresholds are as follows: Strongly Undervalued below -146.38, Undervalued between -146.38 and -35.10, Fairly Valued between 187.45 and -35.10, Overvalued between 187.45 and 298.73, and Strongly Overvalued above 298.73. The current Forward EV/EBITDA of 20.68 falls within the Historic Trend Line -Fairly Valued range.

21.12

EV/EBIT

Pegasystems Inc. (PEGA) has a current EV/EBIT of 21.12. The 5-year average EV/EBIT is 396.86. The thresholds are as follows: Strongly Undervalued below -2467.29, Undervalued between -2467.29 and -1035.22, Fairly Valued between 1828.94 and -1035.22, Overvalued between 1828.94 and 3261.01, and Strongly Overvalued above 3261.01. The current Forward EV/EBIT of 21.12 falls within the Historic Trend Line -Fairly Valued range.

5.28

Pegasystems Inc. (PEGA) has a current PS of 5.28. The 5-year average PS is 4.78. The thresholds are as follows: Strongly Undervalued below 0.24, Undervalued between 0.24 and 2.51, Fairly Valued between 7.05 and 2.51, Overvalued between 7.05 and 9.32, and Strongly Overvalued above 9.32. The current Forward PS of 5.28 falls within the Historic Trend Line -Fairly Valued range.

17.91

P/OCF

Pegasystems Inc. (PEGA) has a current P/OCF of 17.91. The 5-year average P/OCF is 115.98. The thresholds are as follows: Strongly Undervalued below -355.98, Undervalued between -355.98 and -120.00, Fairly Valued between 351.95 and -120.00, Overvalued between 351.95 and 587.93, and Strongly Overvalued above 587.93. The current Forward P/OCF of 17.91 falls within the Historic Trend Line -Fairly Valued range.

19.00

P/FCF

Pegasystems Inc. (PEGA) has a current P/FCF of 19.00. The 5-year average P/FCF is 46.58. The thresholds are as follows: Strongly Undervalued below -188.97, Undervalued between -188.97 and -71.19, Fairly Valued between 164.36 and -71.19, Overvalued between 164.36 and 282.14, and Strongly Overvalued above 282.14. The current Forward P/FCF of 19.00 falls within the Historic Trend Line -Fairly Valued range.

Pegasystems Inc (PEGA) has a current Price-to-Book (P/B) ratio of 14.85. Compared to its 3-year average P/B ratio of 20.60 , the current P/B ratio is approximately -27.92% higher. Relative to its 5-year average P/B ratio of 20.15, the current P/B ratio is about -26.30% higher. Pegasystems Inc (PEGA) has a Forward Free Cash Flow (FCF) yield of approximately 4.43%. Compared to its 3-year average FCF yield of 3.33%, the current FCF yield is approximately 33.02% lower. Relative to its 5-year average FCF yield of 1.98% , the current FCF yield is about 123.31% lower.

14.85

P/B

Median3y

20.60

Median5y

20.15

4.43

FCF Yield

Median3y

3.33

Median5y

1.98

Competitors Valuation Multiple

The average P/S ratio for PEGA's competitors is 4.03, providing a benchmark for relative valuation. Pegasystems Inc Corp (PEGA) exhibits a P/S ratio of 5.28, which is 31.10% above the industry average. Given its robust revenue growth of 9.50%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of PEGA increased by 51.38% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 1.88 to 7.82.

The secondary factor is the Revenue Growth, contributed 9.50%to the performance.

Overall, the performance of PEGA in the past 1 year is driven by Margin Expansion. Which is more sustainable.

9.50%

351.15M → 384.51M

Revenue Growth

315.96%

1.88 → 7.82

Margin Expansion

-274.08%

-26.46 → 46.06

P/E Change

51.38%