Is Pegasystems, Inc. overvalued or undervalued?

As of 17 October 2025, Pegasystems, Inc. moved from very expensive to fair in its valuation grade. The company is currently fairly valued, with a P/E ratio of 44, a Price to Book Value of 14.35, and an EV to EBITDA of 28.79. In comparison, CACI International, Inc. has a more attractive P/E ratio of 39.26, while Parsons Corp. maintains a fair valuation with an EV to EBITDA of 22.58.
Despite recent challenges reflected in its one-week return of -0.63% compared to the S&P 500's 1.70%, Pegasystems has shown resilience with a year-to-date return of 14.55%, outperforming the S&P 500's 13.30%. Overall, the current valuation metrics suggest that Pegasystems is positioned reasonably within its industry.