Is Progress Software Corp. overvalued or undervalued?

As of 2 April 2025, Progress Software Corp. has moved from an expensive to a very expensive valuation grade. The company is currently considered overvalued. Key ratios include a P/E ratio of 38, a Price to Book Value of 6.39, and an EV to EBITDA of 15.19. In comparison to peers, ACI Worldwide, Inc. is valued more attractively with a P/E of 21.22 and an EV to EBITDA of 13.43, while Envestnet, Inc. is classified as risky with a P/E of 85.75.
The company's high valuation metrics, particularly its elevated P/E ratio relative to industry standards, suggest that the market may be pricing in excessive growth expectations. Despite a strong dividend yield of 27.48%, the overall financial indicators and peer comparisons reinforce the conclusion that Progress Software Corp. is overvalued. Notably, the stock has outperformed the S&P 500 over the past year, returning 29.90% compared to the index's 10.26%, but this does not mitigate the valuation concerns.