PRGS Valuation

Progress Software Corp

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42.250

+0.29(0.691%)1D

Overview
Forecast
Valuation
Earnings

PRGS Relative Valuation

PRGS'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, PRGS is overvalued; if below, it's undervalued.

Historical Valuation

Progress Software Corp (PRGS) is now in the Undervalued zone, suggesting that its current forward PE ratio of 7.81 is considered Undervalued compared with the five-year average of 11.97. The fair price of Progress Software Corp (PRGS) is between 61.47 to 72.96 according to relative valuation methord. Compared to the current price of 42.25 USD , Progress Software Corp is Undervalued By 31.27%.

Relative Value

Fair Zone

61.47-72.96

Current Price：42.25

31.27%

Undervalued

7.81

Trailing

Forward

6.14

EV/EBITDA

Progress Software Corp. (PRGS) has a current EV/EBITDA of 6.14. The 5-year average EV/EBITDA is 9.53. The thresholds are as follows: Strongly Undervalued below 2.25, Undervalued between 2.25 and 5.89, Fairly Valued between 13.17 and 5.89, Overvalued between 13.17 and 16.81, and Strongly Overvalued above 16.81. The current Forward EV/EBITDA of 6.14 falls within the Historic Trend Line -Fairly Valued range.

8.67

EV/EBIT

Progress Software Corp. (PRGS) has a current EV/EBIT of 8.67. The 5-year average EV/EBIT is 10.45. The thresholds are as follows: Strongly Undervalued below 8.84, Undervalued between 8.84 and 9.64, Fairly Valued between 11.25 and 9.64, Overvalued between 11.25 and 12.05, and Strongly Overvalued above 12.05. The current Forward EV/EBIT of 8.67 falls within the Strongly Undervalued range.

1.85

Progress Software Corp. (PRGS) has a current PS of 1.85. The 5-year average PS is 3.26. The thresholds are as follows: Strongly Undervalued below 2.42, Undervalued between 2.42 and 2.84, Fairly Valued between 3.68 and 2.84, Overvalued between 3.68 and 4.10, and Strongly Overvalued above 4.10. The current Forward PS of 1.85 falls within the Strongly Undervalued range.

6.88

P/OCF

Progress Software Corp. (PRGS) has a current P/OCF of 6.88. The 5-year average P/OCF is 12.21. The thresholds are as follows: Strongly Undervalued below 3.58, Undervalued between 3.58 and 7.89, Fairly Valued between 16.52 and 7.89, Overvalued between 16.52 and 20.83, and Strongly Overvalued above 20.83. The current Forward P/OCF of 6.88 falls within the Undervalued range.

6.28

P/FCF

Progress Software Corp. (PRGS) has a current P/FCF of 6.28. The 5-year average P/FCF is 10.83. The thresholds are as follows: Strongly Undervalued below 7.15, Undervalued between 7.15 and 8.99, Fairly Valued between 12.67 and 8.99, Overvalued between 12.67 and 14.50, and Strongly Overvalued above 14.50. The current Forward P/FCF of 6.28 falls within the Strongly Undervalued range.

Progress Software Corp (PRGS) has a current Price-to-Book (P/B) ratio of 3.99. Compared to its 3-year average P/B ratio of 5.65 , the current P/B ratio is approximately -29.23% higher. Relative to its 5-year average P/B ratio of 5.53, the current P/B ratio is about -27.78% higher. Progress Software Corp (PRGS) has a Forward Free Cash Flow (FCF) yield of approximately 9.43%. Compared to its 3-year average FCF yield of 7.99%, the current FCF yield is approximately 17.99% lower. Relative to its 5-year average FCF yield of 8.06% , the current FCF yield is about 16.92% lower.

3.99

P/B

Median3y

5.65

Median5y

5.53

9.43

FCF Yield

Median3y

7.99

Median5y

8.06

Competitors Valuation Multiple

The average P/S ratio for PRGS's competitors is 1.86, providing a benchmark for relative valuation. Progress Software Corp Corp (PRGS) exhibits a P/S ratio of 1.85, which is -0.65% above the industry average. Given its robust revenue growth of 35.57%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

PRGS.O

Progress Software Corp

Liveramp Holdings Inc

Slide Insurance Holdings Inc

1.54

25.09%

1.86B

Performance Decomposition

Market capitalization of PRGS decreased by 37.72% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 175.08M to 237.36M.

The secondary factor is the Margin Expansion, contributed -22.49%to the performance.

Overall, the performance of PRGS in the past 1 year is driven by Revenue Growth. Which is more sustainable.

35.57%

175.08M → 237.36M

Revenue Growth

-22.49%

9.25 → 7.17

Margin Expansion

-50.80%

65.60 → 32.27

P/E Change

-37.72%