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 0.00 is considered Fairly compared with the five-year average of 351.77. The fair price of Pegasystems Inc (PEGA) is between NaN to NaN according to relative valuation methord.
Relative Value
Fair Zone
NaN-NaN
Current Price：54.72
Fair
27.17
PE
1Y
3Y
5Y
Trailing
Forward
19.45
EV/EBITDA
Pegasystems Inc. (PEGA) has a current EV/EBITDA of 19.45. The 5-year average EV/EBITDA is 67.10. The thresholds are as follows: Strongly Undervalued below -150.00, Undervalued between -150.00 and -41.45, Fairly Valued between 175.65 and -41.45, Overvalued between 175.65 and 284.20, and Strongly Overvalued above 284.20. The current Forward EV/EBITDA of 19.45 falls within the Historic Trend Line -Fairly Valued range.
19.40
EV/EBIT
Pegasystems Inc. (PEGA) has a current EV/EBIT of 19.40. The 5-year average EV/EBIT is 147.11. The thresholds are as follows: Strongly Undervalued below -1409.98, Undervalued between -1409.98 and -631.43, Fairly Valued between 925.66 and -631.43, Overvalued between 925.66 and 1704.21, and Strongly Overvalued above 1704.21. The current Forward EV/EBIT of 19.40 falls within the Historic Trend Line -Fairly Valued range.
5.15
PS
Pegasystems Inc. (PEGA) has a current PS of 5.15. The 5-year average PS is 4.61. The thresholds are as follows: Strongly Undervalued below 0.44, Undervalued between 0.44 and 2.53, Fairly Valued between 6.69 and 2.53, Overvalued between 6.69 and 8.77, and Strongly Overvalued above 8.77. The current Forward PS of 5.15 falls within the Historic Trend Line -Fairly Valued range.
17.01
P/OCF
Pegasystems Inc. (PEGA) has a current P/OCF of 17.01. The 5-year average P/OCF is 95.45. The thresholds are as follows: Strongly Undervalued below -317.78, Undervalued between -317.78 and -111.16, Fairly Valued between 302.06 and -111.16, Overvalued between 302.06 and 508.68, and Strongly Overvalued above 508.68. The current Forward P/OCF of 17.01 falls within the Historic Trend Line -Fairly Valued range.
17.52
P/FCF
Pegasystems Inc. (PEGA) has a current P/FCF of 17.52. The 5-year average P/FCF is 38.99. The thresholds are as follows: Strongly Undervalued below -190.53, Undervalued between -190.53 and -75.77, Fairly Valued between 153.76 and -75.77, Overvalued between 153.76 and 268.52, and Strongly Overvalued above 268.52. The current Forward P/FCF of 17.52 falls within the Historic Trend Line -Fairly Valued range.
Pegasystems Inc (PEGA) has a current Price-to-Book (P/B) ratio of 15.64. Compared to its 3-year average P/B ratio of 18.80 , the current P/B ratio is approximately -16.81% higher. Relative to its 5-year average P/B ratio of 20.02, the current P/B ratio is about -21.89% higher. Pegasystems Inc (PEGA) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.71%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.26% , the current FCF yield is about -100.00% lower.
16.29
P/B
Median3y
18.80
Median5y
20.02
4.64
FCF Yield
Median3y
3.71
Median5y
2.26
Competitors Valuation Multiple
The average P/S ratio for PEGA's competitors is 5.15, providing a benchmark for relative valuation. Pegasystems Inc Corp (PEGA) exhibits a P/S ratio of 5.15, which is 0.00% above the industry average. Given its robust revenue growth of 17.32%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of PEGA increased by 22.32% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 8.44 to 38.97.
The secondary factor is the Revenue Growth, contributed 17.32%to the performance.
Overall, the performance of PEGA in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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