Is Pegasystems, Inc. overvalued or undervalued?

As of 17 October 2025, Pegasystems, Inc. has moved from very expensive to fair in its valuation grade. The company appears to be fairly valued at this time. Key valuation ratios include a P/E ratio of 44, a PEG ratio of 0.84, and an EV to EBITDA ratio of 28.79. In comparison, CACI International, Inc. has a more attractive P/E of 39.26, while Parsons Corp. shows a fair valuation with a P/E of 35.78.
In terms of stock performance, Pegasystems has outperformed the S&P 500 over the past year with a return of 45.21% compared to the S&P 500's 14.08%, although it has lagged behind in the three-year and five-year periods. Overall, the company's current valuation metrics suggest it is positioned reasonably well within its industry.