Is Progress Software Corp. overvalued or undervalued?

As of 12 September 2025, Progress Software Corp. has moved from an expensive to a fair valuation grade. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 38, a Price to Book Value of 6.39, and an EV to EBITDA ratio of 15.19. In comparison to peers, ACI Worldwide, Inc. has a P/E of 25.62, while N-able, Inc. shows a P/E of 99.28, indicating that Progress Software is positioned reasonably within its industry.
Despite its fair valuation, the stock has underperformed relative to the S&P 500, with a year-to-date return of -33.31% compared to the index's 12.22%. Additionally, over the last three years, the stock has gained only 1.33%, while the S&P 500 has surged by 70.41%. This performance suggests that while the company is fairly valued, its recent stock performance may not reflect its valuation metrics positively.