Latest Ratios: P/E Ratio 24.7x · EV/EBITDA 15.3x · ROE 15.9%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.7B | $1.8B | $3.0B | $2.4B | $2.4B | $2.2B | $1.8B | $1.9B | $1.6B | $2.0B | $1.5B |
| Enterprise Value | $2.4B | $2.6B | $4.5B | $3.0B | $2.7B | $2.6B | $2.1B | $2.0B | $1.6B | $2.0B | $1.4B |
| P/E Ratio → | 24.72 | 24.95 | 44.42 | 34.31 | 24.80 | 27.53 | 22.78 | 72.43 | 25.48 | 53.69 | — |
| P/S Ratio | 1.72 | 1.86 | 4.03 | 3.46 | 3.92 | 4.07 | 4.11 | 4.61 | 4.08 | 5.04 | 3.61 |
| P/B Ratio | 3.78 | 3.81 | 6.93 | 5.23 | 5.92 | 5.24 | 5.25 | 5.77 | 5.23 | 5.33 | 3.60 |
| P/FCF | 7.33 | 7.94 | 14.73 | 14.29 | 12.68 | 12.43 | 13.14 | 15.30 | 14.22 | 19.60 | 15.07 |
| P/OCF | 7.16 | 7.75 | 14.37 | 13.83 | 12.28 | 12.11 | 12.55 | 14.82 | 13.37 | 18.98 | 14.23 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.64 | 5.95 | 4.36 | 4.56 | 4.89 | 4.83 | 4.95 | 4.11 | 5.02 | 3.43 |
| EV / EBITDA | 15.29 | 16.17 | 19.74 | 14.16 | 13.26 | 15.36 | 14.99 | 21.14 | 14.54 | 19.86 | 144.73 |
| EV / EBIT | 15.91 | 16.91 | 35.50 | 27.40 | 20.62 | 22.48 | 20.00 | 53.25 | 24.76 | 28.40 | — |
| EV / FCF | — | 11.24 | 21.73 | 17.97 | 14.74 | 14.94 | 15.44 | 16.43 | 14.31 | 19.49 | 14.33 |
Margins and return-on-capital ratios measuring operating efficiency
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 | 80.8% | 80.8% | 82.7% | 81.8% | 84.3% | 85.2% | 86.0% | 81.8% | 78.6% | 80.5% | 83.8% |
| Operating Margin | 15.7% | 15.7% | 16.5% | 15.9% | 21.9% | 21.9% | 24.4% | 9.7% | 17.1% | 14.5% | -7.3% |
| Net Profit Margin | 7.5% | 7.5% | 9.1% | 10.1% | 15.8% | 14.8% | 18.0% | 6.4% | 16.0% | 9.4% | -13.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 15.9% | 15.9% | 15.2% | 16.4% | 23.4% | 20.7% | 23.6% | 8.2% | 18.5% | 9.6% | -12.0% |
| ROA | 2.9% | 2.9% | 3.3% | 4.7% | 6.9% | 6.5% | 8.3% | 3.5% | 9.3% | 5.1% | -6.8% |
| ROIC | 7.4% | 7.4% | 6.3% | 8.9% | 12.2% | 11.5% | 14.2% | 7.6% | 14.8% | 12.3% | -5.6% |
| ROCE | 8.2% | 8.2% | 7.5% | 9.4% | 12.4% | 12.8% | 15.2% | 7.4% | 14.2% | 10.8% | -4.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.78 | 1.78 | 3.56 | 1.63 | 1.61 | 1.43 | 1.20 | 0.89 | 0.37 | 0.32 | 0.33 |
| Debt / EBITDA | 5.33 | 5.33 | 6.88 | 3.50 | 3.10 | 3.50 | 2.92 | 3.05 | 1.03 | 1.21 | 14.04 |
| Net Debt / Equity | — | 1.58 | 3.29 | 1.35 | 0.96 | 1.06 | 0.92 | 0.43 | 0.04 | -0.03 | -0.18 |
| Net Debt / EBITDA | 4.74 | 4.74 | 6.36 | 2.90 | 1.86 | 2.58 | 2.24 | 1.45 | 0.10 | -0.12 | -7.49 |
| Debt / FCF | — | 3.30 | 7.00 | 3.68 | 2.07 | 2.51 | 2.30 | 1.13 | 0.10 | -0.11 | -0.74 |
| Interest Coverage | 2.15 | 2.15 | 3.94 | 3.59 | 8.43 | 5.77 | 10.50 | 3.87 | 12.81 | 15.16 | -7.44 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.49 | 0.49 | 0.81 | 0.94 | 1.34 | 1.05 | 0.91 | 1.18 | 1.17 | 1.27 | 1.65 |
| Quick Ratio | 0.49 | 0.49 | 0.81 | 0.94 | 1.34 | 1.05 | 0.91 | 1.18 | 1.14 | 1.27 | 1.65 |
| Cash Ratio | 0.12 | 0.12 | 0.26 | 0.36 | 0.81 | 0.49 | 0.40 | 0.72 | 0.71 | 0.88 | 1.23 |
| Asset Turnover | — | 0.40 | 0.30 | 0.43 | 0.43 | 0.39 | 0.42 | 0.47 | 0.62 | 0.55 | 0.54 |
| Inventory Turnover | — | — | — | — | — | — | — | — | 11.60 | — | — |
| Days Sales Outstanding | — | 90.48 | 96.04 | 81.88 | 77.00 | 86.31 | 89.95 | 73.92 | 56.18 | 56.20 | 59.14 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | 0.0% | 0.0% | 1.0% | 1.3% | 1.3% | 1.5% | 1.6% | 1.5% | 1.6% | 1.2% | — |
| Payout Ratio | 1.1% | 1.1% | 46.0% | 45.0% | 32.7% | 40.2% | 37.5% | 105.2% | 40.6% | 64.5% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.0% | 4.0% | 2.3% | 2.9% | 4.0% | 3.6% | 4.4% | 1.4% | 3.9% | 1.9% | — |
| FCF Yield | 13.6% | 12.6% | 6.8% | 7.0% | 7.9% | 8.0% | 7.6% | 6.5% | 7.0% | 5.1% | 6.6% |
| Buyback Yield | 6.2% | 5.8% | 2.9% | 1.4% | 3.3% | 1.6% | 3.3% | 1.3% | 7.4% | 3.7% | 5.7% |
| Total Shareholder Yield | 6.3% | 5.8% | 3.9% | 2.7% | 4.6% | 3.1% | 4.9% | 2.8% | 9.0% | 4.9% | 5.7% |
| Shares Outstanding | — | $44M | $44M | $45M | $44M | $45M | $45M | $45M | $46M | $49M | $49M |
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Quick answers to the most common questions about buying PRGS stock.
Progress Software Corporation's current P/E ratio is 24.7x. The historical average is 31.2x. This places it at the 26th percentile of its historical range.
Progress Software Corporation's current EV/EBITDA is 15.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.9x.
Progress Software Corporation's return on equity (ROE) is 15.9%. The historical average is 11.9%.
Based on historical data, Progress Software Corporation is trading at a P/E of 24.7x. This is at the 26th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Progress Software Corporation's current dividend yield is 0.04% with a payout ratio of 1.1%.
Progress Software Corporation has 80.8% gross margin and 15.7% operating margin. Operating margin between 10-20% is typical for established companies.
Progress Software Corporation's Debt/EBITDA ratio is 5.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
High leverage and SBC dilution
Metrics are mathematically derived from official filings.
Margin Volatility Masks Underlying Earning Power
PRGS's gross margin swung 10.3 points between 2026Q1 and 2026Q2, while operating margin remains below its 2024Q3 peak of 22.6%, according to reported financials, suggesting uneven cost control.
The 82.3% gross margin in 2026Q2 versus 72.0% in the prior quarter likely reflects one-time items or revenue mix shifts, as the historical range is narrow (80-84%). Operating margin at 18.5% is still 4.1 points below the 2024Q3 high, indicating that recent acquisitions or investments have not yet delivered full operating leverage. Net margin of 8.3% is further depressed by interest expense and SBC, which nearly equaled net income in 2026Q2, implying reported profitability overstates economic earnings.
Return on Capital Stalls Despite Revenue Growth
ROIC has hovered between 1.1% and 3.0% over the past ten quarters, with 2026Q2 at 2.4%, as per financial statements, indicating that capital deployed in acquisitions is not yet generating meaningful returns.
ROE and ROA remain low, at 4.2% and 0.9% respectively in 2026Q2, reflecting a balance sheet dominated by goodwill ($1.3B, 56% of assets) and rising debt. The modest returns suggest that the company's M&A-driven growth strategy has not yet translated into superior capital efficiency, and investors should monitor whether integration benefits materialize. The gap between ROIC and cost of capital appears narrow, warranting scrutiny of future capital allocation.
Working Capital Efficiency Shows Mixed Signals
DSO rose to 66 days in 2026Q2 from 61 days a year earlier, while DPO fell to 26 days, based on reported figures, indicating a slight deterioration in cash conversion efficiency.
The cash conversion cycle is not calculable due to missing DIO data, but the combination of higher DSO and lower DPO suggests that PRGS is collecting receivables more slowly and paying suppliers faster, which could pressure near-term cash flow. Asset turnover remains low at 0.11x, typical for software with a large goodwill base, but the working capital trends are worth monitoring as they may indicate competitive pressure or changes in contract terms.
Debt Load Tests Balance Sheet Resilience
D/E climbed to 2.62 in 2026Q2 from 1.54 in 2024Q1, with D/EBITDA at 21.1x, as per balance sheet data, suggesting a significant increase in financial risk that may pressure future earnings.
Interest coverage has deteriorated to 1.96x in 2026Q2 from 6.07x in 2024Q3, indicating that operating income is barely covering interest expense. The debt surge to $1.3B, likely for acquisitions, has not yet translated into proportional EBITDA growth, as D/EBITDA remains elevated. While the company generates strong cash flow, the thin coverage and high leverage suggest limited headroom for additional debt-funded activities without refinancing risk.
Liquidity Buffer Thins to Critical Levels
The current ratio fell to 0.81 in 2026Q2 from 1.23 in 2024Q3, with cash at $103M, as per the balance sheet, indicating a reduced ability to cover short-term obligations without relying on cash flow.
The quick ratio equals the current ratio at 0.81, implying no inventory buffer, which is typical for software but still leaves the company dependent on operating cash flow to meet near-term liabilities. Given the high debt load and interest coverage of only 1.96x, a sudden cash flow disruption could strain liquidity. However, the consistent FCF margin above 30% in recent quarters provides some cushion, though investors should monitor the trajectory.
Misapplied Metric: EV/EBITDA
EV/EBITDA at 15.85x appears reasonable, but with D/EBITDA at 21.1x and SBC near net income, as per financials, this multiple understates leverage and overstates earnings quality.
For a company with significant acquisition-related intangibles and stock-based compensation, EBITDA is a poor proxy for cash earnings. The forward EV/EBITDA of 8.83x implies a sharp EBITDA growth that may not materialize if integration costs persist. A more appropriate metric is EV/OCF or EV/FCF, which at 7.72x P/FCF better reflects the company's cash generation. Investors should adjust EBITDA for SBC and consider net debt, as the current leverage makes the EV/EBITDA multiple misleadingly low.