Pegasystems Inc (PEGA) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Pegasystems Inc $45.92, price $35.18, upside +30.5%, quality 75 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
- Fair value above price? Yes
- Good quality? Yes
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Pegasystems Inc
PEGA · USUndervalued, solidFair Value upside is positive and quality is strong.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range $15.08 – $70.40 · fair‑value band $29.16 – $72.41 · the $35.18 price screens below the $45.92 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 24, 2026.
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Company profile
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.
Stock analysis
Pegasystems Inc (PEGA) currently trades at $35.18, while our model-based Fair Value estimate is $45.92, implying the stock looks roughly 23.4% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $54.57 per share, and 14 of the 26 models we run sit above the $35.18 price.
Bear case: the Economic Profit group reads lowest at $17.84, and 12 of the 26 models stay below the price. Evidence for this calculation is high.
Scenario range: $29.16 (bear) to $72.41 (bull), the price of $35.18 sits inside 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 75/100 (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 $6.5B · P/E ratio 19.8 · P/S ratio 4.45 · EPS (TTM) $1.78 · Dividend yield 0.3% · Net margin 22.5% · Return on equity 51.7% · Return on assets (EBIT) 2.9%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (low confidence).
What moves the price
The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat.
The share trades about 47% below its 52-week high and 35% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at −13% fair-value upside, at 31%, PEGA screens cheaper than that median.
Fair Value models
All 26 models by family
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Set up alert →Quality Score breakdown
Of which business quality 76 · Market factors (momentum, volatility) 29
Revenue & earnings trend
Growth Forecast
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Compare Pegasystems Inc with another stock
Price, fair value, quality and upside side by side.
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Software - Application · 710 stocks
Valuation Multiplesvs Software - Application median · lower = cheaper
Strength profile in five axes (Snowflake)
Context: sector, industry, market
- Is the Information Technology sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- Undervalued stocks: US Stocks
- Valuation of the USA market
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Software - Application stocks, each showing price versus our Fair Value estimate.
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| Salesforce, Inc CRM | $233.28 | $344.41 | +48% |
| ServiceNow, Inc NOW | $137.00 | $150.70 | +10% |
| Cadence Design Systems, Inc CDNS | $302.95 | $225.14 | −26% |
| Snowflake Inc SNOW | $336.59 | $75.08 | −78% |
| Datadog, Inc DDOG | $247.48 | $32.92 | −87% |
| Adobe Inc ADBE | $238.25 | $454.04 | +91% |
| Automatic Data Processing, Inc ADP | $269.64 | $177.51 | −34% |
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Key figures of Pegasystems Inc
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