Progress Software Corporation

NasdaqGS:PRGS Stock Report

Market Cap: US$2.8b

Progress Software Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 PRGS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PRGS ($67.11) is trading below our estimate of fair value ($123.72)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for PRGS. This is calculated by dividing PRGS's market cap by their current earnings.
What is PRGS's PE Ratio?
PE Ratio34.8x
EarningsUS$82.63m
Market CapUS$2.82b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PRGS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average49.6x
RPD Rapid7
55.2x21.1%US$2.5b
TDC Teradata
35x19.8%US$2.8b
NABL N-able
51x13.0%US$1.9b
SWI SolarWinds
57.3x47.8%US$2.2b
PRGS Progress Software
34.8x24.5%US$2.8b

Price-To-Earnings vs Peers: PRGS is good value based on its Price-To-Earnings Ratio (34.8x) compared to the peer average (49.6x).

Price to Earnings Ratio vs Industry

How does PRGS's PE Ratio compare vs other companies in the US Software Industry?

11 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AISP Airship AI Holdings
4.5x-27.8%US$74.21m
GRRR Gorilla Technology Group
2x-67.4%US$45.52m
NISN Nisun International Enterprise Development Group
2.1xn/aUS$35.53m
NXTT Next Technology Holding
0.5xn/aUS$19.19m
PRGS 34.8xIndustry Avg. 41.0xNo. of Companies12PE020406080100+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PRGS is good value based on its Price-To-Earnings Ratio (34.8x) compared to the US Software industry average (41x).

Price to Earnings Ratio vs Fair Ratio

What is PRGS'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.

PRGS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio34.8x
Fair PE Ratio33x

Price-To-Earnings vs Fair Ratio: PRGS is expensive based on its Price-To-Earnings Ratio (34.8x) compared to the estimated Fair Price-To-Earnings Ratio (33x).

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 PRGS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$67.11
US$73.29
+9.2%
7.5%US$80.00US$65.00n/a7
Nov ’25US$64.35
US$74.67
+16.0%
6.3%US$80.00US$65.00n/a6
Oct ’25US$65.80
US$71.33
+8.4%
5.8%US$78.00US$65.00n/a6
Sep ’25US$58.15
US$63.00
+8.3%
6.3%US$68.00US$55.00n/a7
Aug ’25US$57.32
US$63.00
+9.9%
6.3%US$68.00US$55.00n/a7
Jul ’25US$53.55
US$62.86
+17.4%
6.1%US$67.00US$55.00n/a7
Jun ’25US$50.65
US$63.57
+25.5%
4.0%US$67.00US$60.00n/a7
May ’25US$50.11
US$63.61
+26.9%
3.8%US$67.00US$60.00n/a8
Apr ’25US$52.78
US$63.61
+20.5%
3.8%US$67.00US$60.00n/a8
Mar ’25US$53.35
US$63.67
+19.3%
4.3%US$67.00US$60.00n/a6
Feb ’25US$57.93
US$63.33
+9.3%
3.8%US$66.00US$60.00n/a6
Jan ’25US$54.30
US$63.33
+16.6%
3.8%US$66.00US$60.00n/a6
Dec ’24US$54.65
US$63.33
+15.9%
3.8%US$66.00US$60.00n/a6
Nov ’24US$51.10
US$63.33
+23.9%
3.8%US$66.00US$60.00US$64.356
Oct ’24US$52.58
US$63.33
+20.5%
3.8%US$66.00US$60.00US$65.806
Sep ’24US$60.88
US$64.57
+6.1%
4.5%US$70.00US$60.00US$58.157
Aug ’24US$60.46
US$63.86
+5.6%
6.1%US$70.00US$57.00US$57.327
Jul ’24US$58.10
US$63.86
+9.9%
6.1%US$70.00US$57.00US$53.557
Jun ’24US$59.55
US$63.43
+6.5%
6.0%US$70.00US$57.00US$50.657
May ’24US$54.93
US$63.43
+15.5%
6.0%US$70.00US$57.00US$50.117
Apr ’24US$57.45
US$63.43
+10.4%
6.0%US$70.00US$57.00US$52.787
Mar ’24US$57.53
US$58.00
+0.8%
9.2%US$70.00US$53.00US$53.357
Feb ’24US$54.87
US$58.50
+6.6%
9.6%US$70.00US$53.00US$57.936
Jan ’24US$50.45
US$55.00
+9.0%
15.5%US$70.00US$45.00US$54.306
Dec ’23US$54.01
US$55.29
+2.4%
14.3%US$70.00US$45.00US$54.657
Nov ’23US$50.50
US$55.29
+9.5%
14.3%US$70.00US$45.00US$51.107

Analyst Forecast: Target price is less than 20% higher than the current share price.

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