Pegasystems Inc.

DB:PEA Stock Report

Market Cap: €6.5b

Pegasystems Valuation

Is PEA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

What is the Fair Price of PEA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: PEA (€36.6) is trading above our estimate of future cash flow value (€30.76)

Significantly Below Future Cash Flow Value: PEA is trading above our estimate of future cash flow value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PEA?

Key metric: As PEA is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for PEA. This is calculated by dividing PEA's market cap by their current earnings.
What is PEA's PE Ratio?
PE Ratio18.8x
EarningsUS$393.44m
Market CapUS$7.66b

Price to Earnings Ratio vs Peers

How does PEA's PE Ratio compare to its peers?

The above table shows the PE ratio for PEA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24x
NEM Nemetschek
38.3x17.60%€7.8b
AOF ATOSS Software
28.9x10.56%€1.4b
TMV TeamViewer
6.2x8.51%€729.0m
MUM Mensch und Maschine Software
22.6x12.64%€657.7m
PEA Pegasystems
18.8x2.56%€7.7b

Price-To-Earnings vs Peers: PEA is good value based on its Price-To-Earnings Ratio (18.8x) compared to the peer average (24x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does PEA's PE Ratio compare vs other companies in the European Software Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PEA 18.8xIndustry Avg. 23.7xNo. of Companies24PE020406080100+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PEA is good value based on its Price-To-Earnings Ratio (18.8x) compared to the European Software industry average (23.8x).

Price to Earnings Ratio vs Fair Ratio

What is PEA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PEA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.8x
Fair PE Ratio25.5x

Price-To-Earnings vs Fair Ratio: PEA is good value based on its Price-To-Earnings Ratio (18.8x) compared to the estimated Fair Price-To-Earnings Ratio (25.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst PEA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€36.60
€50.24
+37.28%
10.44%€61.50€40.44n/a11
Feb ’27€36.80
€62.32
+69.35%
9.66%€71.67€48.91n/a11
Jan ’27€52.50
€63.50
+20.94%
9.66%€73.02€49.83n/a11
Dec ’26€46.20
€63.12
+36.63%
10.38%€73.41€50.09n/a11
Nov ’26€54.00
€62.92
+16.51%
10.38%€73.17€49.93n/a11
Oct ’26€48.60
€55.19
+13.57%
10.79%€66.51€45.19n/a11
Sep ’26€46.00
€53.37
+16.02%
15.19%€66.41€34.22n/a12
Aug ’26€48.80
€53.37
+9.36%
15.19%€66.41€34.22n/a12
Jul ’26€45.20
€46.35
+2.55%
13.15%€56.03€34.12n/a13
Jun ’26€42.25
€44.39
+5.08%
13.65%€54.88€34.30n/a13
May ’26€39.00
€44.39
+13.83%
13.65%€54.88€34.30n/a13
Apr ’26€32.25
€50.64
+57.03%
13.52%€60.08€37.55n/a13
Mar ’26€36.50
€50.64
+38.75%
13.52%€60.08€37.55n/a13
Feb ’26€50.50
€48.98
-3.01%
15.64%€59.59€37.24€36.8013
Jan ’26€45.00
€47.59
+5.76%
13.24%€59.10€38.44€52.5011
Dec ’25€45.00
€43.23
-3.94%
10.03%€51.91€37.75€46.2010
Nov ’25€36.75
€41.27
+12.30%
7.83%€46.32€37.06€54.0010
Oct ’25€32.00
€37.13
+16.03%
8.47%€41.16€31.31€48.6011
Sep ’25€31.50
€38.25
+21.42%
7.98%€41.70€32.43€46.0011
Aug ’25€32.25
€38.25
+18.60%
7.98%€41.70€32.43€48.8011
Jul ’25€28.00
€33.71
+20.38%
12.17%€42.13€28.09€45.2010
Jun ’25€26.25
€33.37
+27.13%
12.69%€41.72€27.81€42.2511
May ’25€28.00
€33.51
+19.67%
12.28%€42.07€28.04€39.0012
Apr ’25€30.00
€32.89
+9.65%
14.00%€41.64€25.03€32.2512
Mar ’25€30.00
€32.73
+9.12%
13.84%€41.49€24.94€36.5012
Feb ’25€22.90
€24.85
+8.53%
13.15%€30.78€20.22€50.5012
€49.91
Fair Value
26.7% undervalued intrinsic discount
11
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/02/27 10:50
End of Day Share Price 2026/02/27 00:00
Earnings2025/12/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Pegasystems Inc. is covered by 25 analysts. 11 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Raimo LenschowBarclays
Mark SchappelBenchmark Company
Richard DavisCanaccord Genuity