D/E 0.10 — below the Technology debt median (≈40th pctile)
P/E17.5xA-
P/E 17.5 — cheaper than most Technology peers (≈25th pctile)
PEG3.60D
PEG 3.60 — very expensive; pricing in best-case scenarios
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 74.2
Quality0.83
Growth0.92
Value0.54
Why this score
Raising its dividend
Durable high returns
Diluting shareholders
Entry · Margin of safety
52-week rangeNear 52-week low
52% off the 12-month high
vs DCF fair value45% belowest. fair value ~$59
Quality signals · context only
Gross profitability82% · Agross profit ÷ total assets (Novy-Marx)
ROIC19.4% · A-return on invested capital — not score-weighted
Why now
Software - Application · market cap $5.4b. Down 52% from 52-week high of $68.10 — deep drawdown territory. Revenue growing +17%, comfortably above the S&P median. 11 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $58.18 (implying +79% upside).
Moat
Net margin 20% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 48% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 145% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Down 52% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Software — competitive moat is durable until it isn't; watch net revenue retention, gross margin trends, and any new market entrant with a fundamentally lower price point.
Horizon
1-3 yr $58.18 (11-analyst consensus) — fundamentals + valuation re-rating. 5 yr $85.18 at ~21% CAGR — compounding case rests on the competitive position widening. 10 yr $126.36 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Score history · PEGA
Trend
+0.3 over 14 daily scores
From 73.9 (Jun 22) → 74.2 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Position sizing · PEGA
$
%
%
Shares to buy
61
Position size
$1,979
4.0% of portfolio
Stop price
$24.34
25% below $32.45
$ at risk if stopped
$494.86
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Pegasystems Inc. (PEGA): score, valuation & FAQ
Pegasystems Inc. (PEGA) is a Software - Application company that scores 74.2 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are P/E (A-), Rev (B+) and D/E (B+), while PEG (D) rate weaker. On valuation, PEGA sits about 45% below our discounted-cash-flow fair value (a margin of safety).
Is PEGA a good stock to buy?
Bull Rankings scores PEGA 74.2 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by P/E (A-), Rev (B+) and D/E (B+). A score is a quantitative screen of Pegasystems Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does PEGA score 74.2 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). PEGA earns its highest marks on P/E (A-), Rev (B+) and D/E (B+), and is held back by PEG (D). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is PEGA overvalued or undervalued?
Based on $32.45, PEGA sits about 45% below our discounted-cash-flow fair value (a margin of safety). It trades at a 17.5x× P/E (graded A-). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in PEGA?
Down 52% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Software — competitive moat is durable until it isn't; watch net revenue retention, gross margin trends, and any new market entrant with a fundamentally lower price point.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.