Pegasystems Inc.

Valuation Analysis

About the Company

Pegasystems Inc. en bref

Pegasystems Inc. (PEGA) is currently trading at 26,26 € with a market capitalization of 4,4 Md €. The trailing P/E ratio stands at 16.26x, with a forward P/E of 9.89x. The 52-week range spans from 25,65 € to 59,43 €; the current price is 55.8% below the yearly high. Year-over-year revenue growth stands at -9.6%. The net profit margin stands at 20.04%.

💰 Dividende

Pegasystems Inc. pays an annual dividend of 0,10 € per share, representing a yield of 0.4%. The payout ratio stands at 8.11%.

📊 Avis des analystes

11 analystes évaluent Pegasystems Inc. (PEGA) au consensus : Achat Fort. L'objectif de cours moyen est de 50,77 €, soit un potentiel de +93.36% par rapport au cours actuel. La fourchette des objectifs de cours des analystes va de 41,89 € à 61,96 €.

Pegasystems Inc. : la thèse d'investissement en détail

Pegasystems Inc. (PEGA) operates in the Technology — specifically Software - Application — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

Le scénario haussier

With a gross margin near 74.96%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Return on equity of 51.74% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard. Free cash flow is positive and net margins stand at 20.04%, meaning reported earnings translate into real cash that can fund buybacks, dividends or strategic acquisitions.

Le scénario baissier

Revenue is contracting at -9.6% year-over-year — until that trend reverses, valuation is exposed to further downgrades. Short interest sits at 14.21% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

Valorisation en contexte

At a PEG of 3.71, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here.

À surveiller

• The forward P/E of 9.89x is meaningfully below the trailing 16.26x — analysts expect earnings to step up; the next earnings release is the test.
• The price sits in the lower quartile of the 52-week range — value hunters often start scaling in around this zone if fundamentals hold.
• The analyst consensus price target implies 93.36% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Thèse d'investissement : forces et faiblesses

Aperçu technique

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Profil de risque

The data points to relatively defensive market behavior, elevated short interest (14.21%).

Trading Data

💵 Dividend Info

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