Stock AnalizPegasystems Inc. PEGA
EDP Services · IPO 1996 · data as of November 13, 2026
Pegasystems Inc. (PEGA) is a technology company listed in the US with a market value of about $5.3B. In the twelve months to September 30, 2026 it had revenue of $1.7B and net income of $295M, a net margin of 16.9%.
Its overall Stock Analiz score is 3.0 out of 5 (average). The strongest part is financial health (5/5); the weakest is track record (2/5).
Key numbers: a P/E of 20.1, a price to free cash flow of 12.0, 5-year revenue growth of 11% a year, a 5-year average ROIC of -2%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 36% below the current price.
Score: 3.0 / 5
Checks passed
- P/E below 25
- P/E below the industry median
- P/FCF below 20
- Revenue growth above 10% last year
- Profit margin improving
- Strong R&D investment or growth above 20%
- 5-year revenue growth above 8% a year
- ROE above 15%
Checks not passed
- Price below intrinsic value (DCF, moderate assumptions)
- PEG below 1.5
- 3-year revenue growth above 10% a year
- 3-year free cash flow growth above 10% a year
- 5-year EPS growth above 10% a year
- 5-year average ROIC above 12%
- Profitable 5 years in a row
- Share count down over 3 years (buybacks)
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $1.7B | $1.7B | $1.5B | $1.4B | $1.3B | $1.2B | $1.0B | $911M | $892M | $888M | $762M |
| Net income | $295M | $393M | $99M | $68M | -$346M | -$63M | -$61M | -$90M | $11M | $99M | $45M |
| Free cash flow | $442M | $491M | $338M | $201M | -$13M | $29M | -$26M | -$53M | $92M | $144M | $21M |
| EPS (diluted) | $1.61 | $2.13 | $0.55 | $0.37 | $-2.11 | $-0.39 | $-0.38 | $-0.57 | $0.07 | $0.59 | $0.28 |
| Net margin | 16.9% | 22.5% | 6.6% | 4.7% | -26.2% | -5.2% | -6.0% | -9.9% | 1.2% | 11.1% | 5.9% |
| ROIC | — | 24.1% | 7.6% | 13.2% | -38.4% | -14.6% | -18.3% | -14.9% | -2.0% | 11.2% | 7.5% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 7 analysts is $41.00, 26% above the current price; targets range from $35.00 to $50.00; the consensus rating is “none”; expected EPS is $2.11 for the fiscal year ending December 31, 2026.
Frequently asked questions
What is Pegasystems’s P/E ratio?
About 20.1, based on the last twelve months of diluted earnings per share (forward P/E about 12.2).
Is Pegasystems stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 36% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Pegasystems pay a dividend?
Yes. The dividend yield is about 0.38%, and it has paid dividends for 10 years in our data.
Is Pegasystems a good stock to buy?
We do not give buy or sell advice. Pegasystems scores 3.0 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.