What is Pegasystems Inc. (PEGA)'s PEG ratio?

Pegasystems Inc. (PEGA) has a PEG ratio of 0.18 (Potentially Undervalued), based on a PE ratio of 17.5 and expected EPS growth of 98.3% (1-Year EPS CAGR).

Is PEGA undervalued based on its PEG ratio?

A PEG below 1.0 is conventionally read as potentially undervalued, 1.0–2.0 as fairly valued, and above 2.0 as potentially overvalued relative to growth. At 0.18, Pegasystems Inc. (PEGA) screens as "Potentially Undervalued". PEG is one signal, not investment advice — see the full DCF fair value at evidinvest.com/valuation/PEGA.

Pegasystems Inc. (PEGA) PEG Ratio

Potentially Undervalued

PE ratio relative to earnings growth — is the valuation justified?

0.18

PEG Ratio

0.18

Growth Rate Source

Limited Data Quality1-Year EPS CAGR

Current Price

$31.05

TTM EPS

$1.77

P/E Ratio

17.54

Growth Rate

98.3%

1-Year EPS CAGR

Sector

Technology

Software - Application

Calculated

8/18/2026

12:45:10 PM

Peer Comparison

Sample Size

5 peers

Industry Median PEG

1.14

25th Percentile

0.62

75th Percentile

1.36

PEGA PEG (0.18) vs Industry Median (1.14): 84% discount

Symbol	Company	PEG	P/E	Growth	vs PEGA
BLKB	Blackbaud, Inc.	0.13	9.4	72.0%	-27%
WEX	WEX Inc.	0.62	14.6	23.6%	+247%
FICO	Fair Isaac Corporation	1.14	30.7	27.0%	+537%
PLUS	ePlus inc.	1.36	17.2	12.6%	+664%
MANH	Manhattan Associates, Inc.	2.01	43.3	21.6%	+1023%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.

Pegasystems Inc. (PEGA) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on PEGA

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Pegasystems Inc. (PEGA) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on PEGA

Compare with peers

Explore