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Pegasystems Inc
NASDAQ:PEGA

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Pegasystems Inc
NASDAQ:PEGA
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Price: 39.29 USD -10.3% Market Closed
Market Cap: $6.6B

EV/EBITDA

20.9
Current
26%
Cheaper
vs 3-y average of 28.4

Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBITDA
20.9
=
Enterprise Value
$6.9B
/
EBITDA
$298.1m

Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBITDA
20.9
=
Enterprise Value
$6.9B
/
EBITDA
$298.1m

Valuation Scenarios

Pegasystems Inc is trading below its 3-year average

If EV/EBITDA returns to its 3-Year Average (28.4), the stock would be worth $53.36 (36% upside from current price).

Statistics
Positive Scenarios
1/3
Maximum Downside
-31%
Maximum Upside
+36%
Average Downside
1%
Scenario EV/EBITDA Value Implied Price Upside/Downside
Current Multiple 20.9 $39.29
0%
3-Year Average 28.4 $53.36
+36%
Industry Average 19.4 $36.34
-8%
Country Average 14.4 $26.94
-31%

Forward EV/EBITDA
Today’s price vs future ebitda

Today's Enterprise Value EBITDA Forward EV/EBITDA
$6.9B
/
Jan 2026
$298.1m
=
20.9
Current
$6.9B
/
Dec 2026
$606.9m
=
11.3
Forward
$6.9B
/
Dec 2027
$704.2m
=
9.8
Forward
$6.9B
/
Dec 2028
$817m
=
8.4
Forward

Forward EV/EBITDA shows whether today’s EV/EBITDA still looks high or low once future ebitda are taken into account.

Peer Comparison

All Multiples
EV/EBITDA
P/E
All Countries
Close
Market Cap EV/EBITDA P/E
US
Pegasystems Inc
NASDAQ:PEGA
7.5B USD 20.9 17
US
Ezenia! Inc
OTC:EZEN
567B USD -182 667.2 -180 630.8
US
Palantir Technologies Inc
NASDAQ:PLTR
347.7B USD 236.3 213.6
DE
SAP SE
XETRA:SAP
176.3B EUR 14.8 24.1
US
Salesforce Inc
NYSE:CRM
175.3B USD 14 23.5
US
Applovin Corp
NASDAQ:APP
160.1B USD 37.1 48
US
Intuit Inc
NASDAQ:INTU
112.3B USD 18.1 25.8
US
Adobe Inc
NASDAQ:ADBE
100.4B USD 10.1 13.9
US
NCR Corp
LSE:0K45
92.9B USD 249.5 2 212.9
US
Synopsys Inc
NASDAQ:SNPS
88.2B USD 47.5 81.3
US
Cadence Design Systems Inc
NASDAQ:CDNS
88.6B USD 46.7 79.9
EV/EBITDA Multiple
EBITDA Growth EV/EBITDA to Growth
US
Pegasystems Inc
NASDAQ:PEGA
Average EV/EBITDA: 69.5
20.9
40%
0.5
US
Ezenia! Inc
OTC:EZEN
Negative Multiple: -182 667.2 N/A N/A
US
Palantir Technologies Inc
NASDAQ:PLTR
236.3
84%
2.8
DE
SAP SE
XETRA:SAP
14.8
15%
1
US
Salesforce Inc
NYSE:CRM
14
22%
0.6
US
Applovin Corp
NASDAQ:APP
37.1
36%
1
US
Intuit Inc
NASDAQ:INTU
18.1
27%
0.7
US
Adobe Inc
NASDAQ:ADBE
10.1
14%
0.7
US
N
NCR Corp
LSE:0K45
249.5
9%
27.7
US
Synopsys Inc
NASDAQ:SNPS
47.5
47%
1
US
Cadence Design Systems Inc
NASDAQ:CDNS
46.7
25%
1.9
P/E Multiple
Earnings Growth PEG
US
Pegasystems Inc
NASDAQ:PEGA
Average P/E: 274
17
11%
1.5
US
Ezenia! Inc
OTC:EZEN
Negative Multiple: -180 630.8 N/A N/A
US
Palantir Technologies Inc
NASDAQ:PLTR
213.6
58%
3.7
DE
SAP SE
XETRA:SAP
24.1
17%
1.4
US
Salesforce Inc
NYSE:CRM
23.5
29%
0.8
US
Applovin Corp
NASDAQ:APP
48
38%
1.3
US
Intuit Inc
NASDAQ:INTU
25.8
30%
0.9
US
Adobe Inc
NASDAQ:ADBE
13.9
20%
0.7
US
N
NCR Corp
LSE:0K45
2 212.9
52%
42.6
US
Synopsys Inc
NASDAQ:SNPS
81.3
44%
1.8
US
Cadence Design Systems Inc
NASDAQ:CDNS
79.9
39%
2

Market Distribution

In line with most companies in the United States of America
Percentile
69th
Based on 9 875 companies
69th percentile
20.9
Low
0 — 10
Typical Range
10 — 21.5
High
21.5 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 10
Median 14.4
70th Percentile 21.5
Max 1 767 274.1

Pegasystems Inc
Glance View

In the bustling realm of business software, Pegasystems Inc. has carved out a niche as a leading innovator, dedicated to simplifying complex business processes. Founded in 1983 by Alan Trefler, the company was born out of a desire to streamline operations and improve customer interactions across industries. Pegasystems offers a comprehensive suite of intelligent automation solutions that leverage artificial intelligence and machine learning. These solutions enable organizations to adapt swiftly to changes, enhance customer engagement, and automate routine tasks, all from a unified platform. At its core, Pegasystems is focused on driving efficiency and customer-centricity, two pillars that have become essential in today's hyper-competitive business landscape. Pegasystems monetizes its offerings primarily through software licensing and subscription models. The company caters to various sectors, including financial services, healthcare, insurance, and telecommunications, which benefit from Pega’s robust customer relationship management (CRM) and digital process automation (DPA) tools. As businesses strive to stay ahead with digital transformations, Pegasystems gains traction by empowering firms to build applications faster and more flexibly, with minimal coding required. Their impressive roster of global clients continually turns to Pega to solve intricate problems, ensuring steady, recurring revenue streams that bolster its market standing. This reliance on subscription-based revenue has allowed Pegasystems to not only weather economic cycles but also capitalize on them, redefining how businesses think about process automation and customer engagement.

PEGA Intrinsic Value
50.81 USD
Undervaluation 23%
Intrinsic Value
Price $39.29
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