Is Progress Software Corp. overvalued or undervalued?

Oct 20 2025 12:21 PM IST
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As of October 17, 2025, Progress Software Corp. is considered overvalued with a high P/E ratio of 38 and a year-to-date return of -30.68%, significantly underperforming the S&P 500.
As of 17 October 2025, Progress Software Corp. has moved from a fair to an expensive valuation grade. The company appears overvalued based on its current metrics, including a P/E ratio of 38, a Price to Book Value of 6.39, and an EV to EBITDA of 15.19. Comparatively, peers such as ACI Worldwide, Inc. have a P/E of 25.62 and an EV to EBITDA of 15.88, indicating that Progress Software Corp. is trading at a premium relative to its industry.

Additionally, the company's recent stock performance has lagged significantly behind the S&P 500, with a year-to-date return of -30.68% compared to the index's 13.30%. This underperformance, along with its high valuation ratios, reinforces the conclusion that Progress Software Corp. is overvalued in the current market environment.
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