Is Progress Software Corp. overvalued or undervalued?

Oct 21 2025 12:04 PM IST
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As of October 17, 2025, Progress Software Corp. is considered overvalued with a P/E ratio of 38 and a year-to-date return of -30.68%, significantly underperforming compared to the S&P 500's 13.30% return.
As of 17 October 2025, the valuation grade for Progress Software Corp. has moved from fair to expensive, indicating that the company is overvalued. The most relevant valuation 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, ACI Worldwide, Inc. has a P/E of 25.62 and an EV to EBITDA of 15.88, suggesting that Progress Software is trading at a premium relative to its peers.

The company's recent stock performance has been underwhelming, with a year-to-date return of -30.68% compared to the S&P 500's return of 13.30%, further reinforcing the notion that Progress Software is not only overvalued but also struggling to deliver returns in the current market environment.
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