White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
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.
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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.
Pegasystems Inc (0KGS) currently trades at $33.97, while our model-based Fair Value estimate is $103.60, implying the stock looks roughly 67.2% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $115.88 per share, and 23 of the 24 models we run sit above the $33.97 price.
Bear case: the Economic Profit group reads lowest at $40.92, and 1 of the 24 models stay below the price. Evidence for this calculation is high.
Scenario range: $65.67 (bear) to $160.37 (bull), the price of $33.97 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 76/100 (high quality), in the Technology sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Pegasystems Inc reported revenue of $1.7B in FY2025 versus $1.2B in FY2021, a compound +9.6%/yr. Reported net income was $393M in FY2025.
Key figures
Market cap $6.3B · EPS (TTM) $−0.6960 · Dividend yield 0.3% · Net margin 22.5% · Return on equity 54.7% · Return on assets (EBIT) 3.8% · Operating margin 4.6% · Revenue (TTM) $1.7B.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
The share trades about 49% below its 52-week high and 32% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at −8% fair-value upside, at 205%, 0KGS screens cheaper than that median.
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model.
Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.
Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Highest evidence
FCF DCF
$80.65
$143.65
$251.12
76
Growth DCF
$79.59
$135.87
$227.69
73
Owner Earnings
$67.05
$119.04
$207.75
71
All 24 models by family
DCF Models
FCF DCF
$80.65
$143.65
$251.12
76
Owner Earnings
$67.05
$119.04
$207.75
71
5Y Revenue Exit
$50.24
$79.11
$117.27
69
5Y EBITDA Exit
$61.39
$102.44
$153.58
71
5Y P/E Exit
$93.48
$169.52
$257.71
67
10Y Revenue Exit
$58.97
$89.85
$135.55
64
10Y EBITDA Exit
$67.34
$106.69
$165.67
65
10Y P/E Exit
$88.26
$155.13
$252.06
60
Earnings-Based
Graham-Dodd
$33.99
$165.61
$228.18
64
Lynch FV
$44.41
$63.44
$82.47
61
PEG = 1.0
$44.41
$63.44
$82.47
57
EPV
$32.28
$36.95
$40.98
70
Multiples
P/E Multiple
$104.98
$139.98
$174.97
63
P/S Multiple
$63.74
$84.99
$106.23
58
P/B Multiple
$45.02
$60.03
$75.04
55
EV/EBIT
$67.76
$89.44
$111.13
63
EV/EBITDA
$55.95
$73.69
$91.43
64
EV/Revenue
$35.60
$49.70
$63.79
51
Asset-Based
NCAV (Graham)
$5.00
$6.70
$10.00
51
Growth DCF
Growth DCF
$79.59
$135.87
$227.69
73
Rev-Margin DCF
$50.24
$79.06
$116.98
69
Economic Profit
Residual Income
$27.96
$40.92
$91.17
70
ROIC Compounder
$35.33
$44.23
$54.59
70
Growth Earnings
Growth-Adj P/E
$81.11
$115.88
$150.64
67
Open the full fair value analysis →
Overall quality
76/100
Of which business quality 77
· Market factors (momentum, volatility) 25
Profitability
94
Margins and returns on capital today
Quality Growth
88
Are margins and returns improving?
Cashflow
87
Earnings quality: real cash, not paper profit
Fin. Strength
77
Balance sheet, leverage, solvency risk
Investment
55
Disciplined investing over empire-building
Low Volatility
41
Calm price path (market factor)
Momentum
23
Price trend over the last 3–12 months (market factor)
52W Momentum
10
Distance to the 52-week high (market factor)
Net Issuance
45
Share count: buybacks or dilution?
Open the full quality analysis →
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
10 more Software - Application stocks, each showing price versus our Fair Value estimate.
Pick a strategy and jump into the live analysis with that exact screen applied.
Is Pegasystems Inc (0KGS) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of $103.60 versus a price of $33.97, about +205% upside (undervalued).
What is the fair value of 0KGS?
Our model-based fair value for Pegasystems Inc is $103.60 (as of Sep 24, 2026), built from audited fundamentals. The current price: $33.97.
What is the quality score of 0KGS?
Pegasystems Inc has a Quality Score of 76/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Pegasystems Inc (0KGS)?
Our model-based price target is the fair value of $103.60 (as of Sep 24, 2026) from 24 valuation models. Cautious scenario $65.67, optimistic scenario $160.37. It is a calculation from audited fundamentals, not an analyst target.
What is the Pegasystems Inc stock forecast for 2026?
Our models put fair value at $103.60, about +205% upside versus a price of $33.97 (undervalued). Cautious scenario $65.67, optimistic scenario $160.37. The calculation is refreshed regularly with new filings.
What is the revenue of Pegasystems Inc (0KGS)?
Pegasystems Inc reported trailing-twelve-month revenue of about $1.7B (latest available figure, as of Sep 24, 2026).
Does Pegasystems Inc pay a dividend?
Pegasystems Inc currently shows a dividend yield of about 0.26% relative to its recent price (as of Sep 24, 2026).
What growth is priced into Pegasystems Inc (0KGS)?
For today's price to be fair in a discounted-cash-flow model, Pegasystems Inc would have to grow free cash flow by +0.7 % per year for five years (discount rate 9.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +11.4 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of 0KGS use?
Our models discount Pegasystems Inc at 9.9 %: a base by market capitalisation (unknown), damped by beta 0.87, country premium for United Kingdom. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Pegasystems Inc that is +0.7 % per year a year over ten years, using the same discount rate (9.9 %) and the same formula as our fair value.
How much growth has Pegasystems Inc (0KGS) delivered so far?
Over the past 5 years revenue at Pegasystems Inc grew +11.4 % a year. The price currently implies +0.7 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Pegasystems Inc (0KGS) growing?
The median revenue growth in the sector is +9.6 % a year. That is the yardstick for the growth priced into Pegasystems Inc (+0.7 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Pegasystems Inc (0KGS)?
The free-cash-flow yield on the price is 7.82 %: that much free cash flow Pegasystems Inc produces per unit of market value. When it exceeds the discount rate of our models (9.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Pegasystems Inc (0KGS)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Pegasystems Inc it is $103.60 per share (as of Sep 24, 2026), against a price of $33.97. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Pegasystems Inc stock overvalued or undervalued in 2026?
As of Sep 24, 2026, 0KGS trades below its calculated fair value: price $33.97, fair value $103.60, a gap of about +205% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 0KGS?
No. The price is what the market pays today ($33.97); the fair value is what the company's own numbers justify ($103.60). For Pegasystems Inc the two are $69.63 per share apart. That gap is exactly why we show both numbers side by side.
How much is Pegasystems Inc worth?
The market values Pegasystems Inc at about $6.3B (market capitalisation, as of Sep 24, 2026). Per share that is $33.97; our models calculate a fair value of $103.60 per share.
What do the bullish and bearish scenarios say about 0KGS?
Our models span a range for Pegasystems Inc: cautious scenario $65.67, base $103.60, optimistic $160.37 per share (as of Sep 24, 2026, price $33.97). The range comes from different growth and margin assumptions, not from analyst opinions.
How far is 0KGS from its 52-week high?
Pegasystems Inc trades at $33.97, about 49% below its 52-week high of $66.73 and 32% above the low of $25.70 (as of Oct 2, 2026). Distance from the high says nothing about value: that is what the fair value of $103.60 is for.
Which stocks are comparable to Pegasystems Inc?
From the same area (Technology) we also value SAP SE, Salesforce, Inc, Shopify Inc, ServiceNow, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Pegasystems Inc stock attractive at the current price?
The data as of Sep 24, 2026: price $33.97, calculated fair value $103.60 (+205%), Quality Score 76/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 0KGS calculated?
We run Pegasystems Inc through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $103.60, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. Pegasystems Inc currently trades 67 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on
is it worth investing now.
What is the share price of Pegasystems Inc (0KGS)?
The closing price on Oct 2, 2026 was $33.97. Our model-based fair value is $103.60, about +205% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Pegasystems Inc right now?
The rarer combination: high quality (76/100) AND below fair value. That earns a closer look rather than a quick verdict. The price is below even our cautious bear case ($65.67). The market is more pessimistic than our downside scenario. A fairly wide model range ($65.67 to $160.37) leaves room in how you read the outcome.
Key figures of Pegasystems Inc
How large is the market capitalisation of Pegasystems Inc (0KGS)?
The market capitalisation of Pegasystems Inc is $6.3B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What are the earnings per share of Pegasystems Inc (0KGS)?
Earnings per share at Pegasystems Inc are $−0.6960. Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Pegasystems Inc (0KGS)?
The dividend yield of Pegasystems Inc is 0.3%. Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Pegasystems Inc (0KGS)?
The net margin of Pegasystems Inc is 22.5% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Pegasystems Inc (0KGS)?
The return on equity (ROE) of Pegasystems Inc is 54.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Pegasystems Inc (0KGS)?
On an EBIT basis the return on assets of Pegasystems Inc is 3.8% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Pegasystems Inc (0KGS)?
The operating margin of Pegasystems Inc is 4.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Pegasystems Inc (0KGS)?
Revenue at Pegasystems Inc is growing +9.4% versus a year earlier (3y avg +9.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Pegasystems Inc (0KGS)?
Earnings per share at Pegasystems Inc are growing −52.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Pegasystems Inc (0KGS) hold?
Pegasystems Inc holds more cash than debt, $77.2M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
