# Pegasystems Inc. (PEGA) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Software. Price $37.36, market value $6.1 billion.

## Valuation
- **P/E (trailing): 21.2×** (5-yr avg 59.3×, 3-yr avg 59.3×). Pegasystems Inc. trades at 21.2× trailing earnings, well below its own five-year average of 59.3×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 14.1×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.05**. A PEG of 0.05 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 3.5×**. Each dollar of revenue is priced at 3.5×.
- **Price / book: 11.0×**. The shares trade at 11.0× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **Free-cash-flow yield: 8.0%** (5-yr avg 2.6%). Free cash flow equals 8.0% of the market value, above its five-year average of 2.6%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 4.7%**. The inverse of the P/E: 4.7% of the price is earned each year.

## Profitability
- **Gross margin: 75.6%**. Pegasystems Inc. keeps 75.6% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 9.9%**. 9.9% of revenue is left after running the business.
- **Net margin: 22.5%**. 22.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 50.0%**. 50.0% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on assets: 19.9%**. Each dollar of assets produces 19.9% of profit.

## Growth
- **Revenue growth (1 yr): 16.6%** (3-yr 9.8%/yr, 5-yr 11.4%/yr). Revenue grew 16.6% over the last year, against 11.4% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 287.3%**. Earnings per share rose 287.3%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Current ratio: 1.33** (quick 1.33). Current assets cover the next year's liabilities 1.33 times.
- **Altman Z-score: 6.82**. A Z-score of 6.82 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 0.32%** ($0.12 per share, trailing). Pegasystems Inc. yields 0.32%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 4%** (4% of free cash flow). 4% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 1**. 1 straight year of increases.
- **Dividend growth (5 yr): 8.4%/yr** (1-yr 100.0%). The dividend has grown 8.4% a year over five years.

## Analyst view
- **Analyst consensus: buy** (8 analysts). 8 analysts cover Pegasystems Inc.; the consensus is buy, with an average price target of $43.36 (+16% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -30.4%** (YTD -37.3%, 3-mo 7.7%). The shares are down 30.4% over twelve months including dividends.
- **From 52-week high: -45.1%** (48.8% above the low). Trading 45% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 68**. An RSI of 68 is neutral.
- **Beta (1 yr): 0.85** (volatility 52%). Beta of 0.85 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=PEGA · Page: https://foliofundamentals.com/stocks/pega

Not investment advice.