Progress Software Corporation (PRGS) 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

+296.7%

$178.03

vs $44.88 price

Levered DCF

$199.41

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

1.34

Distress zone

Rating

B+

Overall 3 / 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	24.68×	43.3×	33.25×	24.35×	27.07×	22.53×	71.2×	25.29×
P/B	3.77×	6.75×	5.09×	5.82×	5.16×	5.2×	5.7×	5.17×
P/S	1.84×	3.93×	3.37×	3.85×	4×	4.07×	4.55×	4.03×
EV / EBITDA	8.42×	19.2×	13.86×	13.01×	14.33×	14.96×	21.27×	14.6×
Gross margin	80.8%	82.7%	81.8%	84.3%	85.2%	86.0%	81.8%	78.6%
Operating margin	15.7%	16.5%	15.9%	21.9%	21.9%	24.4%	9.7%	17.1%
Net margin	7.5%	9.1%	10.1%	15.8%	14.8%	18.0%	6.4%	16.0%
Current ratio	0.49×	0.81×	0.94×	1.34×	1.05×	0.91×	1.18×	1.17×
Debt / equity	1.78×	3.56×	1.63×	1.61×	1.43×	1.2×	0.89×	0.37×
Interest coverage	2.16×	3.87×	3.59×	8.37×	5.79×	10.59×	4.04×	13.17×
Dividend yield	0.0%	1.1%	1.3%	1.3%	1.5%	1.7%	1.5%	1.6%
Payout ratio	1.1%	46.0%	45.0%	32.7%	40.2%	37.5%	105.2%	40.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	15.3%	15.6%	15.3%	23.9%	19.0%	23.0%	8.0%	20.5%
Return on invested capital	8.3%	4.3%	7.6%	9.7%	8.9%	11.0%	5.7%	11.2%
Return on assets	3.0%	2.7%	4.4%	6.7%	5.8%	7.7%	3.0%	9.9%
Free cash flow yield	12.7%	7.0%	7.2%	8.0%	8.2%	7.7%	6.6%	7.1%
Earnings yield	4.1%	2.3%	3.0%	4.1%	3.7%	4.4%	1.4%	4.0%
Enterprise value	$2.6B	$4.4B	$3B	$2.7B	$2.6B	$2.1B	$2B	$1.6B
Net debt / EBITDA	2.49×	6.3×	2.9×	1.85×	2.44×	2.25×	1.48×	0.1×
Cash conversion cycle (days)	59	57	46	41	41	31	22	30