Pegasystems Inc.

DB:PEA Stock Report

Market Cap: €8.5b

Pegasystems Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair 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.

Discounted Cash Flow
Simply Wall St
€137.76
Fair Value
26.7% undervalued intrinsic discount
11
Number of Analysts

Below Fair Value: PEA (€101) is trading below our estimate of fair value (€137.76)

Significantly Below Fair Value: PEA is trading below fair value by more than 20%.

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 Ratio73.9x
EarningsUS$122.76m
Market CapUS$8.86b

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 Average39x
NEM Nemetschek
73.7x17.5%€12.6b
TMV TeamViewer
13.7x10.3%€1.6b
AOF ATOSS Software
40.6x6.9%€1.8b
MUM Mensch und Maschine Software
28x13.3%€893.8m
PEA Pegasystems
73.9x20.6%€8.9b

Price-To-Earnings vs Peers: PEA is expensive based on its Price-To-Earnings Ratio (73.9x) compared to the peer average (39x).

Price to Earnings Ratio vs Industry

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

8 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies16PE020406080100+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PEA is expensive based on its Price-To-Earnings Ratio (73.9x) compared to the European Software industry average (26.4x).

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 Ratio73.9x
Fair PE Ratio31.4x

Price-To-Earnings vs Fair Ratio: PEA is expensive based on its Price-To-Earnings Ratio (73.9x) compared to the estimated Fair Price-To-Earnings Ratio (31.4x).

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€101.00
€97.27
-3.7%
13.3%€118.08€76.80n/a11
Jan ’26€90.00
€95.18
+5.8%
13.2%€118.19€76.87n/a11
Dec ’25€90.00
€86.45
-3.9%
10.0%€103.82€75.50n/a10
Nov ’25€73.50
€82.54
+12.3%
7.8%€92.64€74.11n/a10
Oct ’25€64.00
€74.58
+16.5%
8.5%€82.66€62.90n/a11
Sep ’25€63.00
€76.49
+21.4%
8.0%€83.40€64.87n/a11
Aug ’25€64.50
€76.49
+18.6%
8.0%€83.40€64.87n/a11
Jul ’25€56.00
€67.41
+20.4%
12.2%€84.27€56.18n/a10
Jun ’25€52.50
€67.12
+27.8%
12.7%€83.90€55.93n/a11
May ’25€56.00
€67.02
+19.7%
12.3%€84.13€56.09n/a12
Apr ’25€60.00
€65.79
+9.6%
14.0%€83.29€50.06n/a12
Mar ’25€60.00
€65.90
+9.8%
13.8%€83.53€50.21n/a12
Feb ’25€45.80
€49.00
+7.0%
13.1%€60.69€39.86n/a12
Jan ’25€44.20
€49.00
+10.9%
13.1%€60.69€39.86€90.0012
Dec ’24€47.40
€48.50
+2.3%
12.3%€59.77€40.46€90.0012
Nov ’24€40.40
€48.62
+20.3%
13.2%€61.22€41.44€73.5013
Oct ’24€41.20
€52.10
+26.4%
13.4%€65.66€42.21€64.0013
Sep ’24€45.80
€50.54
+10.4%
13.4%€63.66€40.92€63.0013
Aug ’24€47.20
€50.54
+7.1%
13.4%€63.66€40.92€64.5013
Jul ’24€44.20
€46.79
+5.9%
13.2%€60.24€33.77€56.0013
Jun ’24€44.00
€45.48
+3.4%
11.2%€51.81€33.63€52.5012
May ’24€41.00
€44.92
+9.6%
11.3%€51.73€33.58€56.0011
Apr ’24€42.60
€46.16
+8.4%
16.1%€56.11€28.05€60.0011
Mar ’24€43.52
€46.16
+6.1%
16.1%€56.11€28.05€60.0011
Feb ’24€36.31
€37.42
+3.1%
22.0%€50.77€23.08€45.8011
Jan ’24€31.97
€40.58
+26.9%
27.5%€63.08€24.26€44.2011
Analyst Price Target
Consensus Narrative from 11 Analysts
€96.74
Fair Value
4.4% overvalued intrinsic discount
11
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/21 05:38
End of Day Share Price 2025/01/21 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

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 here.

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 .

Analyst Sources

Pegasystems Inc. is covered by 31 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
Ishan MajumdarBaptista Research
Raimo LenschowBarclays
Mark SchappelBenchmark Company