Pegasystems Inc. (PEGA)
Fair ValueFundamental
78
Price
$36.42
Market Cap
$5.78B
Part 1 · What the company is worth
Overview
Pegasystems Inc. develops, markets, licenses, hosts, and supports enterprise software in the United States, rest of the Americas, the United Kingdom, rest of Europe, the Middle East, Africa, and the Asia-Pacific. It provides Pega Infinity, a software portfolio comprising of Pega Customer Decision Hub, a real-time AI-powered decision engine, which can predict a customer's behavior and recommend the next best action to take across channels in real-time; Pega Customer Service to anticipate customer needs, connect customers to people and systems, and automate customer interactions to evolve the customer service experience, as well as to allow enterprises to deliver interactions across channels and enhance employee productivity; and Pega Platform, a software for AI-powered workflow automation for increasing the efficiency of clients' processes and operational workflows. The company also offers Situational Layer Cake that organizes logic into layers that map to the unique dimensions of a client's business, such as customer types, lines of business, geographies, etc.; Pega GenAI Blueprint to rapidly prototype and accelerate the development and deployment of applications; Pega Cloud that allows clients to develop, test, and deploy applications; Pega Catalyst, which helps clients to transform and prototype their customer journeys; Pega Academy, which offers enablement content for Pega product implementations, such as instructor-led and online training to its employees, clients, and partners; and global service assurance and client support services. It primarily markets its software and services to financial services, healthcare, communications and media, government, insurance, manufacturing and high tech, and consumer industries through a direct sales force, as well as partnerships with technology providers and application developers. Pegasystems Inc. was incorporated in 1983 and is headquartered in Waltham, Massachusetts.
No editorial profile for this company yet
Direct competitors
Who this company fights with for the same customers
Generated with artificial intelligence on September 19, 2026, shared with all users
Appian sells a low-code process automation and case management platform to the same large, highly regulated enterprises Pegasystems targets, and the two vendors bid head-to-head on the same deals.
Named by Pegasystems in its 10-K, ServiceNow competes for the same enterprise workflow-automation and low-code application budgets across customer service and back-office operations.
Named in Pegasystems' 10-K, Salesforce competes for the same CRM spend in marketing, sales and customer service at large enterprises.
Named in Pegasystems' 10-K, IBM sells business process management, case management and decisioning automation to the same banks, insurers and telcos.
Named in Pegasystems' 10-K, Microsoft competes with its Power Platform and Dynamics 365 for the same low-code application and customer-service workloads inside enterprise IT.
Named in Pegasystems' 10-K, Oracle offers process automation and customer experience suites to the same large regulated organisations.
Balance Sheet & Liquidity
Revenue
$1.75B
Trailing 12 months (through 9/30/2026)
Net Income
$295M
Trailing 12 months (through 9/30/2026)
Free Cash Flow
$491M
Total Equity
$787M
Total Liabilities
$844M
Current Ratio
1.04
Interest Coverage
650.41
Debt/EBITDA
0.20
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$36.29
Current Price
$36.42
Margin of Safety
-0.4%
Fair Value Range
$23.59 - $48.99
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
22.76
ROE
50.0%
P/B Ratio
10.86
P/FCF
13.48
Gross Margin
75.9%
ROIC
21.0%
Profitability Radar
Value Creation (Economic Moat)
ROIC
21.0%
WACC
9.6%
ROIC − WACC
+11.4 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (21)
- EPS shows upward trend
- EPS CAGR 5.91%
- Price CAGR 6.93%
- ROIC 21.0%
- Gross margin 75.9%
- P/FCF 13.48
- Debt/equity ratio
- Operating margin 9.9%
- Positive free cash flow
- CapEx intensity
- Current ratio
- Interest coverage
- Debt/EBITDA
- Return on tangible assets
- Low reliance on intangibles
- ROE 48.9%
- Revenue growth 5Y 11.4%
- Earnings quality (operating cash flow / net income) 1.57
- Share dilution 2.4%
- Net margin trend 16.9% vs 16.0%
- Piotroski F-Score 8/9
Failed (4)
- P/B ratio 10.86
- Price below Graham Number
- DCF valuation (Overvalued)
- Earnings surprise, average -20.4%
Unavailable (2)
- Dividend payout –
- PEG ratio (needs P/E > 0 and growth > 0)
Piotroski F-Score
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Issuing new shares, diluting ownership
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Alan Trefler | Founder, CEO & Chairman of the Board | 69 |
| Mr. Kenneth R. Stillwell Jr. | COO & CFO | 54 |
| Mr. Leon Trefler | Chief of Clients & Markets | 64 |
| Mr. Kerim Akgonul | Chief Product Officer | 53 |
| Mr. John Higgins | Chief of Client & Partner Success | 50 |
| Mr. Efstathios A. Kouninis | Chief Accounting Officer, VP of Finance & Treasurer | 63 |
| Mr. Don Schuerman | CTO and VP of Marketing & Technology Strategy | - |
| Mr. David Vidoni | Chief Information Officer | - |
| Mr. Peter Welburn | Vice President of Investor Relations | - |
| Mr. Benjamin Ostapuk | Chief Legal Officer | - |
Audit Risk
3
Board Risk
7
Compensation Risk
5
Shareholder Rights Risk
4
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-10
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-10-20
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-10-20
via SEC EDGAR
Income History
via SEC EDGAR
Part 2 · The price and its context
This part shows how the price has behaved, not whether the company is worth owning. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Market Reaction Profile
How much PEGA moves, measured on its daily prices.
More volatile than 80% of the tracked stocks (90-day volatility).
- Volatility 30d
- 43.1%
- Volatility 90d
- 54.3%
- Beta vs S&P 500 (1y)
- 0.66Correlation 0.16
- Max drawdown (12m)
- -61.0%
- ATR (14d, % of price)
- 4.55%
Earnings reactions
How PEGA moved around its past quarterly results.
Next earnings release
No upcoming release on the calendar.
What usually happens
- Over the last 12 releases the stock moved a median of 14.3% the next day, up or down.
- Next-day moves: up 7, down 5 (out of 12).
Release history
| Date | When | EPS est. | EPS actual | Surprise | Gap | 1 day | 5 days |
|---|---|---|---|---|---|---|---|
| Oct 20, 2026 | After the close | 0.46 | 0.35 | -24.6% | -2.2% | -2.9% | n/a |
| Jul 21, 2026 | After the close | 0.45 | 0.35 | -21.8% | -18.2% | -16.0% | -4.6% |
| Apr 21, 2026 | After the close | 0.68 | 0.46 | -32.0% | +4.3% | -4.6% | -8.5% |
| Feb 10, 2026 | After the close | 0.75 | 0.76 | +1.4% | -9.2% | -11.9% | +3.8% |
| Oct 21, 2025 | After the close | 0.20 | 0.30 | +47.3% | +9.8% | +15.0% | +14.8% |
| Jul 22, 2025 | After the close | n/a | n/a | n/a | +0.6% | +13.9% | +18.6% |
| Apr 22, 2025 | After the close | n/a | n/a | n/a | +28.7% | +28.8% | +32.6% |
| Feb 12, 2025 | After the close | n/a | n/a | n/a | -5.9% | -19.6% | -23.2% |
| Oct 23, 2024 | After the close | n/a | n/a | n/a | +11.9% | +14.7% | +17.2% |
| Jul 24, 2024 | After the close | n/a | n/a | n/a | +7.2% | +12.8% | +14.1% |
| Apr 24, 2024 | After the close | n/a | n/a | n/a | -4.9% | +0.3% | +2.9% |
| Feb 14, 2024 | After the close | n/a | n/a | n/a | +20.5% | +35.7% | +27.6% |
Release dates from SEC 8-K filings.
Updated 10/24/2026
Historical statistics for educational purposes only. They are not forecasts and not investment advice.
Price reaction to the news
Latest news on PEGA and what the price did next.
Return of the stock minus return of SPY over the same days. A news item close to a price move did not necessarily cause it. Historical data for educational purposes only, not investment advice.
Latest News
Recent headlines for PEGA.