PEGAPegasystems Inc.

$35.67-40% 1Y

Is the price fair?

Excellent

Undemanding: modest expectations priced in, cheap against its own history, and cheap vs its sector.

3 good
What the price assumes~−4% a yearderived · Jun 30, 2026

Priced for a decline (~−4% a year). The price demands less than its three-year revenue growth of 10% a year, expectations look modest.

Vs its own P/E rangecheapest in 21 quartersderived

Cheap vs its own history: P/E 20.1 vs a 51.3 median over 21 quarters (−61% vs median).

Vs sector (EV/EBIT)16.6×derived · Dec 31, 2025

Sector median 30.5× across 203 covered peers. EV/EBIT counts debt as part of the price, so a cash-rich and a borrowed company can be compared on the same footing.

Against the whole market›

Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.

P/E (valuation)middle of the market
FCF yieldbetter than 85% of the market

Where this answer is blind. The growth-implied estimate assumes a fixed discount rate; capital-heavy sectors look structurally rich on it.

What PEGA's price assumes

Pegasystems Inc. trades at 20.1× earnings against 33.9× for the median Software - Application name, cheaper than its own group.

20.1

Trailing P/E · Software - Application median 33.9 · cheaper than the typical name in its group

Price / sales
2.75

Price / sales · today's price, fiscal year to Dec 31, 2025

Free cash flow yield
10%

Free cash flow yield · Software - Application median 6.9%

Growth the price implies
−4.0%

Growth the price implies · The price pays for −4.0% free cash flow growth a year for a decade; the business has delivered +68% a year over the last three.

Details›
Price / booktoday's price, fiscal year to Dec 31, 2025
6.10
EV / EBITtoday's price, fiscal year to Dec 31, 2025
16.6
EV / salestoday's price, fiscal year to Dec 31, 2025
2.51
Technology median P/E459 names
37.7
Software - Application median P/E126 names
33.9
Free cash flow, trailing twelve months
$493M
Market capitalisation
$4.80B
3-year revenue growth
+10%
3-year free cash flow growth
+68%
PEGA has re-rated away from its own history, so multiplying the old multiple by today's earnings prices a full reversal, not the business
MethodPer share
What its own history would implynot meaningful, 20.1× today against a 51.3× median
52-week range$25.99 – $66.56
Today$35.67

Multiples from SEC filings and end-of-day closes; implied growth from a reverse discounted cash flow. Group medians across the names Ryufin tracks.