Pegasystems PEGA
United StatesTechnology · Software - ApplicationUSD
41.43 USD (+20.6%)
7 analysts
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Pegasystems is an enterprise software company offering a business process automation and customer relationship management (CRM) platform, powered by artificial intelligence, for large organizations in sectors such as banking, insurance, and healthcare.
Key points
from its scores- ✓High-quality business8.3
- ✕Poor share-price trend2.0
- ✕Little or no dividend2.7
- ✕Weak growth3.3
AI analysis
bottom line, main risk, context and newsThe quality of the business and reasonable valuation do not offset the current negative momentum.
Pegasystems presents a mixed profile: high quality with ROE of 54.69% and gross margin of 75.57%, but negative earnings growth (-52.90%) and weak momentum (22nd percentile in 52 weeks). Valuation is reasonable (P/E 19.41, FCF yield 8.98%) and net cash (ND/EBITDA -1.38) provides solidity, although the earnings decline and weak momentum suggest caution.
The main risk is the 52.90% decline in earnings growth, which could indicate operational or demand issues that have not yet reversed, reflected in very weak momentum (22nd percentile in 52 weeks).
Context and risks
Pegasystems has no material exposure to current macro factors: its enterprise software business does not depend on commodities, interest rates, or shipping routes. The rise in long-term US rates could slightly pressure valuation multiples across the tech sector, but the company has net cash, insulating it from financing costs. No specific regulatory, geopolitical, or business model risks are identified beyond those already reflected in the quantitative metrics.
Is Pegasystems stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Technology median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 19.4 | 31.3 | −38% |
| EV / EBITDA | 25.5 | 20.4 | +25% |
| Price / book | 10.1 | 6.3 | +60% |
| Price / sales | 3.3 | 5.3 | −38% |
Sector: median of the 283 Technology companies analysed. In bold, the multiples used for the comparison.
Valuation score: 6.0 out of 10 (median for Technology: 5.3).
Average analyst target: 41.43 USD, +20.6% versus the price.
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Technology medianValuation
- P/E
- 19.4
- Forward P/E
- 13.2
- EV / EBITDA
- 25.5
- Price / book
- 10.1
- Price / sales
- 3.3
- PEG
- 2.99
- Market cap
- 5.6B USD
- Enterprise value
- 5.4B USD
Profitability
- ROE
- 54.7%
- ROA
- 9.1%
- ROIC (approx.)
- 12.6%
- Gross margin
- 75.6%
- Operating margin
- 4.6%
- Net margin
- 18.7%
- Free cash flow
- 507.4M USD
- FCF yield
- 9.0%
- Cash conversion
- 242%
Solvency
- Total debt
- 72.0M USD
- Net debt
- −289.9M USD
- Cash
- 361.9M USD
- EBITDA
- 209.7M USD
- Net debt / EBITDA
- −1.38
- Debt / equity
- 12.85
- Current ratio
- 1.06
- Quick ratio
- 0.98
Growth
- Revenue growth
- +9.4%
- Earnings growth
- −52.9%
- EPS (TTM)
- 1.77 USD
- EPS (forward)
- 2.60 USD
Dividend
- Dividend yield
- 0.3%
- Payout
- 6.8%
Risk and market
- Beta
- 0.89
- Analyst consensus
- Buy (7)
- Target price
- 41.43 USD
- 52-week range
- 25.10 – 68.10
Recent news
All PEGA news →Compare it with its sector
All 283 in Technology →Frequently asked questions about Pegasystems
Is Pegasystems stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Technology median (within 15%). Valuation score: 6.0 out of 10 (median for Technology: 5.3). Average analyst target: 41.43 USD, +20.6% versus the price. This is not investment advice.
What score does Pegasystems get on MeridIAn Screener?
It scores 5.8 out of 10, rank 1,187 of 2,130 (better than 43% of the companies analysed). Its strongest category is Quality / Moat (8.3) and its weakest, Momentum (2.0). Analysis of 08/10/2026.
What is Pegasystems's P/E ratio?
Its P/E is 19.4: the share price equals 19.4 times earnings per share over the last 12 months. The Technology median is 31.3. Based on the earnings analysts expect, the forward P/E is 13.2.
How much is Pegasystems worth on the stock market?
Its market capitalisation is 5.6B USD and its enterprise value, debt included, is 5.4B USD.
How much debt does Pegasystems have?
It has more cash than debt: net cash of 289.9M USD.
Does Pegasystems pay a dividend?
Yes: its dividend yield is 0.35% and it pays out 7% of its earnings.
How has Pegasystems stock performed over the last year?
It has fallen 35.7% over the last year, excluding dividends. Over the last 52 weeks it has traded between 25.10 and 68.10 USD. Past performance does not guarantee future results.
What do analysts think of Pegasystems?
7 analysts cover it; their average recommendation is “Buy” and their average target is 41.43 USD (+20.6% versus the price). It is an estimate, not market data.