Pegasystems Inc. (PEGA) Financial Ratios
30 years of historical data (1996–2025) · Technology · Software - Application
EV/EBITDA
↓
17.13
↓-61% vs avg
5yr avg: 43.47
30Y Low7.7·High83.5
P/FCF
↓
10.37
↓-89% vs avg
5yr avg: 96.34
30Y Low7.1·High138.1
P/B Ratio
↓
7.06
↓-58% vs avg
5yr avg: 16.67
30Y Low0.7·High21.9
ROE
↑
57.3%
↓+965% vs avg
5yr avg: -6.6%
30Y Low-126%·High57%
Debt/EBITDA
↓
0.26
↓-91% vs avg
5yr avg: 2.91
30Y Low0.0·High5.0
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
PEGA Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Pegasystems Inc. trades at 14.1x earnings, 76% below its 5-year average of 57.9x, sitting at the 10th percentile of its historical range. Compared to the Technology sector median P/E of 29.0x, the stock trades at a discount of 51%. On a free-cash-flow basis, the stock trades at 10.4x P/FCF, 89% below the 5-year average of 96.3x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $5.1B | $11.0B | $8.4B | $4.1B | $2.8B | $9.1B | $10.7B | $6.3B | $4.0B | $3.9B | $2.9B |
| Enterprise Value | $5.0B | $10.9B | $8.6B | $4.5B | $3.3B | $9.6B | $11.1B | $6.3B | $3.9B | $3.7B | $2.8B |
| P/E Ratio → | 14.13 | 28.04 | 84.73 | 61.07 | — | — | — | — | 374.33 | 39.64 | 105.88 |
| P/S Ratio | 2.91 | 6.32 | 5.58 | 2.90 | 2.13 | 7.51 | 10.52 | 6.91 | 4.46 | 4.65 | 3.83 |
| P/B Ratio | 7.06 | 14.02 | 14.27 | 11.73 | 21.44 | 21.87 | 19.75 | 11.68 | 6.39 | 10.53 | 8.55 |
| P/FCF | 10.37 | 22.49 | 24.70 | 20.64 | — | 317.52 | — | — | 42.98 | 27.03 | 138.09 |
| P/OCF | 10.07 | 21.84 | 24.15 | 19.05 | 125.62 | 232.65 | — | — | 38.08 | 24.69 | 71.99 |
P/E links to full P/E history page with 30-year chart
PEGA EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Pegasystems Inc.'s enterprise value stands at 17.1x EBITDA, 61% below its 5-year average of 43.5x. This is roughly in line with the Technology sector median of 16.7x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.24 | 5.72 | 3.14 | 2.54 | 7.94 | 10.94 | 6.89 | 4.33 | 4.45 | 3.73 |
| EV / EBITDA | 17.13 | 37.71 | 53.77 | 38.93 | — | — | — | — | 467.07 | 31.76 | 37.44 |
| EV / EBIT | 18.81 | 38.66 | 57.31 | 43.98 | — | — | — | — | — | 40.18 | 52.29 |
| EV / FCF | — | 22.21 | 25.33 | 22.39 | — | 335.85 | — | — | 41.74 | 25.91 | 134.69 |
PEGA Profitability
Margins and return-on-capital ratios measuring operating efficiency
Pegasystems Inc. earns an operating margin of 15.1%. Operating margins have expanded from 5.7% to 15.1% over the past 3 years, signaling improving operational efficiency. Return on equity of 57.3% is exceptionally high. ROIC of 27.2% represents excellent returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 75.9% | 75.9% | 73.9% | 73.6% | 72.0% | 72.2% | 69.4% | 66.0% | 66.2% | 72.4% | 69.7% |
| Operating Margin | 15.1% | 15.1% | 8.3% | 5.7% | -8.3% | -7.8% | -14.1% | -14.8% | -1.9% | 11.1% | 6.8% |
| Net Profit Margin | 22.5% | 22.5% | 6.6% | 4.7% | -26.2% | -5.2% | -6.0% | -9.9% | 1.2% | 3.9% | 3.6% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 57.3% | 57.3% | 21.1% | 28.0% | -126.4% | -13.2% | -11.4% | -15.6% | 2.1% | 9.3% | 8.2% |
| ROA | 23.1% | 23.1% | 6.0% | 4.7% | -23.4% | -3.9% | -4.7% | -9.2% | 1.2% | 4.8% | 4.2% |
| ROIC | 27.2% | 27.2% | 12.4% | 8.8% | -10.2% | -7.4% | -14.5% | -19.6% | -3.6% | 29.5% | 15.3% |
| ROCE | 33.4% | 33.4% | 15.3% | 9.2% | -11.4% | -8.4% | -16.4% | -21.4% | -3.2% | 23.9% | 13.9% |
PEGA Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Pegasystems Inc. carries a Debt/EBITDA ratio of 0.3x, which is very conservative (91% below the sector average of 2.9x). The company holds a net cash position — cash of $212M exceeds total debt of $76M, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns. Interest coverage of 219.4x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.10 | 0.10 | 0.94 | 1.64 | 5.26 | 1.65 | 1.10 | 0.10 | — | — | — |
| Debt / EBITDA | 0.26 | 0.26 | 3.45 | 5.03 | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -0.17 | 0.36 | 0.99 | 4.15 | 1.26 | 0.78 | -0.03 | -0.18 | -0.44 | -0.21 |
| Net Debt / EBITDA | -0.47 | -0.47 | 1.33 | 3.04 | — | — | — | — | -13.85 | -1.38 | -0.94 |
| Debt / FCF | — | -0.28 | 0.63 | 1.75 | — | 18.34 | — | — | -1.24 | -1.12 | -3.40 |
| Interest Coverage | 219.39 | 219.39 | 21.87 | 14.88 | -19.76 | -15.59 | -5.45 | — | — | — | — |
Net cash position: cash ($212M) exceeds total debt ($76M)
PEGA Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.33x means Pegasystems Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has declined from 1.78x to 1.33x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.33 | 1.33 | 1.23 | 1.78 | 1.57 | 1.73 | 2.12 | 1.34 | 1.84 | 1.51 | 1.40 |
| Quick Ratio | 1.33 | 1.33 | 1.23 | 1.78 | 1.57 | 1.73 | 2.12 | 1.34 | 1.84 | 1.51 | 1.40 |
| Cash Ratio | 0.58 | 0.58 | 0.68 | 0.73 | 0.55 | 0.75 | 1.01 | 0.18 | 0.63 | 0.71 | 0.47 |
| Asset Turnover | — | 1.07 | 0.85 | 0.95 | 0.97 | 0.76 | 0.63 | 0.93 | 0.91 | 1.16 | 1.15 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 100.89 | 134.79 | 143.31 | 141.74 | 127.11 | 157.22 | 152.16 | 144.73 | 166.23 | 135.82 |
PEGA Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Pegasystems Inc. returns 10.4% to shareholders annually — split between a 0.3% dividend yield and 10.2% buyback yield. The payout ratio of 3.9% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 7.1% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.3% | 0.1% | 0.1% | 0.2% | 0.4% | 0.1% | 0.1% | 0.2% | 0.2% | 0.2% | 0.3% |
| Payout Ratio | 3.9% | 3.9% | 10.3% | 14.7% | — | — | — | — | 88.8% | 28.2% | 34.0% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.1% | 3.6% | 1.2% | 1.6% | — | — | — | — | 0.3% | 2.5% | 0.9% |
| FCF Yield | 9.6% | 4.4% | 4.0% | 4.8% | — | 0.3% | — | — | 2.3% | 3.7% | 0.7% |
| Buyback Yield | 10.2% | 4.7% | 0.9% | 0.0% | 1.7% | 1.3% | 1.0% | 1.1% | 2.3% | 1.2% | 1.5% |
| Total Shareholder Yield | 10.4% | 4.8% | 1.0% | 0.3% | 2.0% | 1.5% | 1.1% | 1.2% | 2.6% | 1.4% | 1.8% |
| Shares Outstanding | — | $185M | $179M | $170M | $164M | $163M | $161M | $158M | $166M | $166M | $159M |
Peer Comparison
Compare PEGA with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 PEGAYou | $5B | 14.1 | 17.1 | 10.4 | 75.9% | 15.1% | 57.3% | 27.2% | 0.3 |
 APPN | $2B | 1269.7 | 170.6 | 26.0 | 72.5% | 0.1% | — | 0.3% | 33.5 |
 AGYS | $2B | 64.3 | 47.4 | 36.2 | 61.9% | 12.6% | 13.1% | 12.8% | 0.4 |
 POWI | $5B | 223.4 | 96.9 | 55.7 | 54.5% | 4.8% | 3.1% | 2.4% | — |
 NICE | $5B | 8.8 | 5.8 | 7.3 | 66.4% | 21.9% | 16.4% | 13.2% | 0.2 |
 CRM | $124B | 19.5 | 10.7 | 8.6 | 77.7% | 21.5% | 12.4% | 10.1% | 1.4 |
 NOW | $98B | 56.9 | 38.2 | 21.5 | 77.5% | 13.7% | 15.5% | 12.4% | 1.3 |
 MSFT | $2.8T | 27.8 | 17.8 | 39.4 | 68.8% | 45.6% | 33.3% | 24.9% | 0.7 |
 ORCL | $530B | 31.6 | 22.8 | — | 65.2% | 30.8% | 53.4% | 11.0% | 5.4 |
 SAP | $181B | 22.6 | 14.2 | 19.9 | 73.8% | 26.7% | 15.5% | 16.0% | 0.7 |
 INTU | $73B | 19.5 | 13.4 | 12.0 | 80.8% | 26.1% | 20.3% | 16.5% | 1.2 |
| Technology Median | — | 29.0 | 16.7 | 19.2 | 48.8% | 0.2% | 1.6% | 2.7% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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PEGA — Frequently Asked Questions
Quick answers to the most common questions about buying PEGA stock.
What is Pegasystems Inc.'s P/E ratio?
Pegasystems Inc.'s current P/E ratio is 14.1x. The historical average is 60.0x. This places it at the 10th percentile of its historical range.
What is Pegasystems Inc.'s EV/EBITDA?
Pegasystems Inc.'s current EV/EBITDA is 17.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 32.2x.
What is Pegasystems Inc.'s ROE?
Pegasystems Inc.'s return on equity (ROE) is 57.3%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 2.4%.
Is PEGA stock overvalued?
Based on historical data, Pegasystems Inc. is trading at a P/E of 14.1x. This is at the 10th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Pegasystems Inc.'s dividend yield?
Pegasystems Inc.'s current dividend yield is 0.28% with a payout ratio of 3.9%.
What are Pegasystems Inc.'s profit margins?
Pegasystems Inc. has 75.9% gross margin and 15.1% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Pegasystems Inc. have?
Pegasystems Inc.'s Debt/EBITDA ratio is 0.3x, indicating low leverage. A ratio below 2x is generally considered financially healthy.