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Pegasystems Inc
NASDAQ:PEGA

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Pegasystems Inc
NASDAQ:PEGA
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Price: 35.25 USD -5.95% Market Closed
Market Cap: $6B

EV/EBITDA

18.6
Current
34%
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
18.6
=
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
18.6
=
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 $53.79 (53% upside from current price).

Statistics
Positive Scenarios
2/3
Maximum Downside
-23%
Maximum Upside
+53%
Average Upside
11%
Scenario EV/EBITDA Value Implied Price Upside/Downside
Current Multiple 18.6 $35.25
0%
3-Year Average 28.4 $53.79
+53%
Industry Average 19.4 $36.62
+4%
Country Average 14.4 $27.16
-23%

Forward EV/EBITDA
Today’s price vs future ebitda

Today's Enterprise Value EBITDA Forward EV/EBITDA
$6.9B
/
Jan 2026
$298.1m
=
18.6
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
6B USD 18.6 15.3
US
Ezenia! Inc
OTC:EZEN
567B USD -182 667.2 -180 630.8
US
Palantir Technologies Inc
NASDAQ:PLTR
337.4B USD 229 207.2
DE
SAP SE
XETRA:SAP
164.1B EUR 14.6 23.7
US
Salesforce Inc
NYSE:CRM
162.4B USD 13 21.8
US
Applovin Corp
NASDAQ:APP
153.7B USD 35.6 46.1
US
Intuit Inc
NASDAQ:INTU
106.4B USD 17.2 24.5
US
Adobe Inc
NASDAQ:ADBE
97B USD 9.7 13.5
US
Synopsys Inc
NASDAQ:SNPS
87.5B USD 46.5 79.4
US
NCR Corp
LSE:0K45
86.7B USD 233 2 065.2
US
Cadence Design Systems Inc
NASDAQ:CDNS
85.4B USD 45 77
EV/EBITDA Multiple
EBITDA Growth EV/EBITDA to Growth
US
Pegasystems Inc
NASDAQ:PEGA
Average EV/EBITDA: 66.2
18.6
40%
0.5
US
Ezenia! Inc
OTC:EZEN
Negative Multiple: -182 667.2 N/A N/A
US
Palantir Technologies Inc
NASDAQ:PLTR
229
84%
2.7
DE
SAP SE
XETRA:SAP
14.6
15%
1
US
Salesforce Inc
NYSE:CRM
13
22%
0.6
US
Applovin Corp
NASDAQ:APP
35.6
36%
1
US
Intuit Inc
NASDAQ:INTU
17.2
27%
0.6
US
Adobe Inc
NASDAQ:ADBE
9.7
14%
0.7
US
Synopsys Inc
NASDAQ:SNPS
46.5
47%
1
US
N
NCR Corp
LSE:0K45
233
9%
25.9
US
Cadence Design Systems Inc
NASDAQ:CDNS
45
25%
1.8
P/E Multiple
Earnings Growth PEG
US
Pegasystems Inc
NASDAQ:PEGA
Average P/E: 257.4
15.3
11%
1.4
US
Ezenia! Inc
OTC:EZEN
Negative Multiple: -180 630.8 N/A N/A
US
Palantir Technologies Inc
NASDAQ:PLTR
207.2
58%
3.6
DE
SAP SE
XETRA:SAP
23.7
17%
1.4
US
Salesforce Inc
NYSE:CRM
21.8
29%
0.8
US
Applovin Corp
NASDAQ:APP
46.1
38%
1.2
US
Intuit Inc
NASDAQ:INTU
24.5
30%
0.8
US
Adobe Inc
NASDAQ:ADBE
13.5
20%
0.7
US
Synopsys Inc
NASDAQ:SNPS
79.4
44%
1.8
US
N
NCR Corp
LSE:0K45
2 065.2
52%
39.7
US
Cadence Design Systems Inc
NASDAQ:CDNS
77
39%
2

Market Distribution

In line with most companies in the United States of America
Percentile
64rd
Based on 9 875 companies
64rd percentile
18.6
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 31%
Intrinsic Value
Price $35.25
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