PRGS (Progress Software) Effective Interest Rate on Debt %: 4.71% (As of May. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

PRGS Progress Software Corp PRGS
79 GF Score
Price $42.66
GF Value $78.84
Valuation Possible Value Trap
! 7 Warning Signs
View Full Analysis

What is Progress Software Effective Interest Rate on Debt %?

Progress Software PRGS -2.57% 79 Effective Interest Rate on Debt % is 4.71% as of May. 2026. GuruFocus rates PRGS with a GF Score™ of 79/100 and a GF Value™ of $78.84 (Possible Value Trap). The stock has 7 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Progress Software's annualized positive value of Interest Expense for the quarter that ended in May. 2026 was $64 Mil. Progress Software's average total debt for the quarter that ended in May. 2026 was $1,351 Mil. Therefore, Progress Software's annualized Effective Interest Rate on Debt % for the quarter that ended in May. 2026 was 4.71%.


Progress Software  (NAS:PRGS) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Progress Software Effective Interest Rate on Debt % Related Terms


Progress Software Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Progress Software's Effective Interest Rate on Debt % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Progress Software Effective Interest Rate on Debt % Chart

Progress Software Annual Data
Trend Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23 Nov24 Nov25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.98 2.56 4.44 2.77 4.74

Progress Software Quarterly Data
Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.81 4.83 4.59 4.35 4.71

PRGS vs PICS, NN, APPN: Effective Interest Rate on Debt % Comparison

For the Software - Infrastructure subindustry, Progress Software's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Progress Software Effective Interest Rate on Debt % vs Software Industry

For the Software industry and Technology sector, Progress Software's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Progress Software's Effective Interest Rate on Debt % falls into.


PRGS
79GF Score
Progress Software Corp PRGS
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Progress Software Effective Interest Rate on Debt % Calculation

Progress Software's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Nov. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Nov. 2024 )+Total Debt  (A: Nov. 2025 ))/ count )
=-1  *  -70.85/( (1561.728+1429.916)/ 2 )
=-1  *  -70.85/1495.822
=4.74 %

where

Total Debt  (A: Nov. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1552.526 + 9.202
=1561.728

Total Debt  (A: Nov. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1062.263 + 367.653
=1429.916

Progress Software's annualized Effective Interest Rate on Debt % for the quarter that ended in May. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Feb. 2026 )+Total Debt  (Q: May. 2026 ))/ count )
=-1  *  -63.644/( (1375.509+1326.758)/ 2 )
=-1  *  -63.644/1351.1335
=4.71 %

where

Total Debt  (Q: Feb. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1006.975 + 368.534
=1375.509

Total Debt  (Q: May. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1318.614 + 8.144
=1326.758

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (May. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 4.71% mean?
Progress Software (PRGS) has a Effective Interest Rate on Debt % of 4.71% as of May. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Progress Software and its competitors.
Is Progress Software's Effective Interest Rate on Debt % too high?
Progress Software's current Effective Interest Rate on Debt % is 4.71%. Overall, Progress Software has a GF Score™ of 79/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Progress Software's Effective Interest Rate on Debt % compare to PICS and NN?
Progress Software's Effective Interest Rate on Debt % of 4.71% can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Software company?
A good Effective Interest Rate on Debt % depends on the Software industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Progress Software and its competitors. Progress Software's current Effective Interest Rate on Debt % is 4.71%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Progress Software stock overvalued right now?
Based on GuruFocus' analysis, Progress Software (PRGS) is currently considered Possible Value Trap. The stock's GF Value™ is $78.84, compared to a current price of $42.66 — trading 45.9% below its estimated fair value. The current Effective Interest Rate on Debt % is 4.71%. Progress Software's overall GF Score™ is 79/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Progress Software (PRGS), the current Effective Interest Rate on Debt % is 4.71% as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Progress Software (PRGS) Overvalued in 2026?

Based on GuruFocus' analysis, Progress Software stock appears to be undervalued. The current stock price of $42.66 is trading 45.9% below its estimated GF Value™ of $78.84. GuruFocus considers Progress Software to be Possible Value Trap.

Key valuation signals for PRGS:

  • Effective Interest Rate on Debt %: 4.71%
  • GF Value™: $78.84 vs. price of $42.66 (45.9% below fair value)
  • GF Score™: 79/100 with 7 warning signs

No single metric tells the full story. See the PRGS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Progress Software Business Description

Other Exchanges PRGS:MexicoPGR:Germany
Address 15 Wayside Road, Suite 400, Burlington, MA, USA, 01803
Progress Software Corp provides software products that enable customers to develop, deploy, and manage AI-powered applications and digital experiences. The Company operates across North America, Latin America, Europe, the Middle East and Africa (EMEA), and Asia Pacific through subsidiaries and distributors, generating a majority of its revenue from the United States. Its product portfolio includes Progress Agentic RAG, Automate MFT, Chef, Corticon, DataDirect, Developer Tools, Flowmon, Kemp LoadMaster, MarkLogic, MOVEit, OpenEdge, Semaphore, ShareFile, Sitefinity, and WhatsUp Gold, offering solutions for application development, data connectivity, DevOps automation, managed file transfer, network security, and digital experience. It generates maximum revenue from the United States.
79GF Score

Get the complete analysis for PRGS

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$42.66
Price
$78.84
GF Value