Pegasystems Inc. (PEGA)
Fair ValueFundamental
78
Price
$33.28
Market Cap
$5.47B
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.
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Direct competitors
Who this company fights with for the same customers
Generated on September 19, 2026 with claude-haiku-4-5 — 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
$1.74B
Trailing 12 months (through 6/30/2026)
Net Income
$324M
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$491M
Total Equity
$787M
Total Liabilities
$844M
Current Ratio
1.06
Interest Coverage
498.89
Debt/EBITDA
0.26
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
$36.75
Current Price
$33.28
Margin of Safety
+9.4%
Fair Value Range
$23.89 - $49.62
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
18.91
ROE
50.0%
P/B Ratio
9.76
P/FCF
11.11
Gross Margin
75.6%
ROIC
20.5%
Profitability Radar
Value Creation (Economic Moat)
ROIC
20.5%
WACC
9.6%
ROIC − WACC
+10.9 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (22)
- EPS shows upward trend
- EPS CAGR 5.91%
- Price CAGR 6.93%
- ROIC 20.5%
- Gross Margin 75.6%
- P/FCF 11.11
- 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%
- Analyst Consensus 68% Buy
- Earnings Quality (OCF/NI) 1.58
- Share Dilution 2.4%
- Net Margin Trend 18.7% vs 13.1%
- Piotroski F-Score 8/9
Failed (4)
- P/B Ratio 9.76
- Price below Graham Number
- DCF valuation (Overvalued)
- Earnings Surprise avg -1.3%
Unavailable (2)
- Dividend Payout NaN%
- PEG Ratio (need PE > 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
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
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 2026-07-21
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-07-21
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for PEGA, sourced from Markets Gazette.