Is Progress Software Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Progress Software Corp. has moved from fair to expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 38, a Price to Book Value of 6.39, and an EV to EBITDA of 15.19, all of which suggest a premium valuation compared to its peers. Notably, ACI Worldwide, Inc. has a P/E of 25.62 and an EV to EBITDA of 15.88, while the average peer P/E stands at approximately 25.29, reinforcing the perception that Progress Software is trading at a higher valuation than its industry counterparts.
In terms of recent performance, Progress Software has underperformed relative to the S&P 500, with a year-to-date return of -30.68% compared to the index's 13.30%. This significant underperformance, coupled with the elevated valuation ratios, supports the conclusion that Progress Software Corp. is overvalued.