Pegasystems Inc. (PEGA) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-101.5%

-$0.50

vs $34.58 price

Levered DCF

$26.47

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

6.66

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	25.97×	80.34×	59.59×	-8.11×	-143.36×	-175.34×	-69.88×	353.85×
P/B	12.95×	13.57×	11.48×	21.44×	21.87×	19.75×	11.68×	6.05×
P/S	5.84×	5.31×	2.84×	2.13×	7.51×	10.52×	6.91×	4.22×
EV / EBITDA	32.69×	44.13×	32.23×	-28.07×	-100.86×	-132.2×	-55.47×	264.79×
Gross margin	75.9%	73.9%	73.6%	72.0%	72.2%	69.4%	66.0%	66.2%
Operating margin	15.1%	8.3%	5.7%	-8.3%	-7.8%	-14.1%	-14.8%	-1.9%
Net margin	22.5%	6.6%	4.7%	-26.2%	-5.2%	-6.0%	-9.9%	1.2%
Current ratio	1.33×	1.23×	1.78×	1.57×	1.73×	2.12×	1.34×	1.84×
Debt / equity	0.1×	0.94×	1.64×	5.26×	1.65×	1.1×	0.1×	0×
Interest coverage	204.75×	18.12×	11.77×	-14.04×	-11.91×	-7.42×	0×	0×
Dividend yield	0.2%	0.1%	0.2%	0.4%	0.1%	0.1%	0.2%	0.3%
Payout ratio	3.9%	10.3%	14.7%	-2.8%	-15.5%	-15.7%	-10.5%	88.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	50.0%	16.9%	19.2%	-264.1%	-15.2%	-11.3%	-16.8%	1.7%
Return on invested capital	28.9%	7.4%	6.1%	-13.1%	-4.1%	-6.1%	-14.9%	2.4%
Return on assets	24.1%	5.6%	4.5%	-25.5%	-4.0%	-3.8%	-9.2%	1.1%
Free cash flow yield	4.8%	4.3%	4.9%	-0.5%	0.3%	-0.2%	-0.8%	2.5%
Earnings yield	3.9%	1.2%	1.7%	-12.3%	-0.7%	-0.6%	-1.4%	0.3%
Enterprise value	$10.1B	$8.2B	$4.4B	$3.3B	$9.6B	$11.1B	$6.3B	$3.6B
Net debt / EBITDA	-0.44×	1.15×	2.57×	-4.55×	-5.51×	-5.04×	0.14×	-8.31×
Cash conversion cycle (days)	90	129	132	124	118	129	132	125