Overview Dividends

(PEGA) Pegasystems - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US7055731035

Customer, Service, Platform, Cloud, Automation

Application Software
Market Cap in USD: 10,273m

IPO / Inception: 1996-07-18
Return 12m vs S&P 500: 1.43%

EPS (Earnings per Share)

EPS CAGR: 71.14%
EPS Trend: 45.3%

Last SUE: 0.23
Qual. Beats: 0

Revenue

Rev. CAGR: 5.12%
Rev. Trend: 54.0%

Last SUE: 0.77
Qual. Beats: 0

Dividends

Dividend Yield	0.21%
Yield on Cost 5y	0.18%
Yield CAGR 5y	0.00%
Payout Consistency	62.8%
Payout Ratio	2.8%

Risk via 5d forecast
Volatility	43.8%
Value at Risk 5%th	64.5%
Relative Tail Risk	-10.55%

Reward TTM
Sharpe Ratio	0.54
Alpha	-1.90
CAGR/Max DD	1.11

Character TTM
Hurst Exponent	0.512
Beta	1.407
Beta Downside	1.434

Drawdowns 3y
Max DD	44.38%
Mean DD	11.08%
Median DD	9.37%

Description: PEGA Pegasystems January 07, 2026

Pegasystems Inc. (NASDAQ:PEGA) is a U.S.-based enterprise-software vendor that designs, licenses, hosts, and supports a suite of applications for customers across the Americas, EMEA, and APAC. The company is incorporated in 1983 and operates from Waltham, Massachusetts, classifying under the GICS sub-industry “Application Software.”

The core offering is the Pega Infinity portfolio, which includes the AI-driven Pega Customer Decision Hub for real-time next-best-action recommendations, Pega Customer Service for omnichannel support automation, and the Pega Platform for workflow and process automation. Complementary components such as the Situational Layer Cake, GenAI Blueprint, Pega Cloud, Catalyst, and the Pega Academy expand the platform’s flexibility, speed of development, and ecosystem enablement.

Pega sells primarily to financial services, healthcare, communications & media, government, insurance, manufacturing, high-tech, and consumer-services firms through a direct sales force and strategic technology partnerships. This focus aligns the company with sectors that are investing heavily in digital transformation and AI-enabled customer engagement.

Recent metrics indicate solid momentum: FY2023 total revenue reached approximately $1.5 billion, with subscription-based ARR growing ~20% YoY and cloud-hosting revenue up about 30% YoY (non-GAAP operating margin ~15%). The broader enterprise-software market is projected to expand 8-10% annually, driven by rising demand for low-code automation and AI-enhanced decisioning-key tailwinds for Pega’s platform strategy.

For a deeper, data-rich comparison of Pegasystems against its peers, the ValueRay analysis provides a useful next step.

Piotroski VR‑10 (Strict, 0-10) 7.5

Net Income (278.0m TTM) > 0 and > 6% of Revenue (6% = 103.9m TTM)

FCFTA 0.34 (>2.0%) and ΔFCFTA 13.51pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 12.37% (prev 6.39%; Δ 5.99pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.34 (>3.0%) and CFO 442.0m > Net Income 278.0m (YES >=105%, WARN >=100%)

Net Debt (-71.9m) to EBITDA (373.3m) ratio: -0.19 <= 3.0 (WARN <= 3.5)

Current Ratio 1.36 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (184.1m) change vs 12m ago 7.50% (target <= -2.0% for YES)

Gross Margin 75.74% (prev 74.40%; Δ 1.33pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 120.6% (prev 93.75%; Δ 26.88pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 112.4 (EBITDA TTM 373.3m / Interest Expense TTM 2.96m) >= 6 (WARN >= 3)

Altman Z'' 3.58

(A) 0.17 = (Total Current Assets 811.8m - Total Current Liabilities 597.5m) / Total Assets 1.29b

(B) 0.18 = Retained Earnings (Balance) 233.9m / Total Assets 1.29b

(D) 0.33 = Book Value of Equity 226.8m / Total Liabilities 696.0m

Total Rating: 3.58 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 87.34

1. Piotroski 7.50pt

2. FCF Yield 4.39%

3. FCF Margin 25.36%

4. Debt/Equity 0.13

5. Debt/Ebitda -0.19

6. ROIC - WACC (= 21.06)%

7. RoE 45.98%

8. Rev. Trend 53.98%

9. EPS Trend 45.34%

What is the price of PEGA shares?

As of January 10, 2026, the stock is trading at USD 57.94 with a total of 979,811 shares traded.
Over the past week, the price has changed by +3.35%, over one month by -5.48%, over three months by +3.09% and over the past year by +22.70%.

Is PEGA a buy, sell or hold?

Pegasystems has received a consensus analysts rating of 4.21. Therefore, it is recommended to buy PEGA.

Strong Buy: 7
Buy: 3
Hold: 4
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the PEGA price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	73.9	27.6%
Analysts Target Price	73.9	27.6%
ValueRay Target Price	57.9	-0.1%

PEGA Fundamental Data Overview January 08, 2026

P/E Trailing = 38.9935
P/E Forward = 27.3224
P/S = 5.9304
P/B = 17.0766
P/EG = 0.9284
Beta = 1.084
Revenue TTM = 1.73b USD
EBIT TTM = 332.8m USD
EBITDA TTM = 373.3m USD
Long Term Debt = 76.8m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 28.8m USD (from shortTermDebt, last quarter)
Debt = 76.8m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -71.9m USD (from netDebt column, last quarter)
Enterprise Value = 10.00b USD (10.27b + Debt 76.8m - CCE 351.4m)
Interest Coverage Ratio = 112.4 (Ebit TTM 332.8m / Interest Expense TTM 2.96m)
FCF Yield = 4.39% (FCF TTM 439.2m / Enterprise Value 10.00b)
FCF Margin = 25.36% (FCF TTM 439.2m / Revenue TTM 1.73b)
Net Margin = 16.05% (Net Income TTM 278.0m / Revenue TTM 1.73b)
Gross Margin = 75.74% ((Revenue TTM 1.73b - Cost of Revenue TTM 420.3m) / Revenue TTM)
Gross Margin QoQ = 72.23% (prev 71.50%)
Tobins Q-Ratio = 7.73 (Enterprise Value 10.00b / Total Assets 1.29b)
Interest Expense / Debt = 0.19% (Interest Expense 144.0k / Debt 76.8m)
Taxrate = 30.46% (43.4m / 142.6m)
NOPAT = 231.4m (EBIT 332.8m * (1 - 30.46%))
Current Ratio = 1.36 (Total Current Assets 811.8m / Total Current Liabilities 597.5m)
Debt / Equity = 0.13 (Debt 76.8m / totalStockholderEquity, last quarter 596.8m)
Debt / EBITDA = -0.19 (Net Debt -71.9m / EBITDA 373.3m)
Debt / FCF = -0.16 (Net Debt -71.9m / FCF TTM 439.2m)
Total Stockholder Equity = 604.5m (last 4 quarters mean from totalStockholderEquity)
RoA = 19.36% (Net Income 278.0m / Total Assets 1.29b)
RoE = 45.98% (Net Income TTM 278.0m / Total Stockholder Equity 604.5m)
RoCE = 48.84% (EBIT 332.8m / Capital Employed (Equity 604.5m + L.T.Debt 76.8m))
RoIC = 32.08% (NOPAT 231.4m / Invested Capital 721.4m)
WACC = 11.02% (E(10.27b)/V(10.35b) * Re(11.10%) + D(76.8m)/V(10.35b) * Rd(0.19%) * (1-Tc(0.30)))
Discount Rate = 11.10% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 1.44%
[DCF Debug] Terminal Value 72.09% ; FCFF base≈392.8m ; Y1≈484.5m ; Y5≈825.2m
Fair Price DCF = 51.11 (EV 8.60b - Net Debt -71.9m = Equity 8.67b / Shares 169.7m; r=11.02% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: 45.34 | EPS CAGR: 71.14% | SUE: 0.23 | # QB: 0
Revenue Correlation: 53.98 | Revenue CAGR: 5.12% | SUE: 0.77 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.61 | Chg30d=+0.025 | Revisions Net=+1 | Analysts=12
EPS next Year (2026-12-31): EPS=2.23 | Chg30d=-0.018 | Revisions Net=-1 | Growth EPS=+7.0% | Growth Revenue=+6.9%

Additional Sources for PEGA Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle