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PegasystemsMIL:1PEGA 56 EV-to-EBIT is 26.63 as of Aug. 06, 2026, which is 667% above its 10-year median of 3.47. GuruFocus rates MIL:1PEGA with a GF Score™ of 56/100 and a GF Value™ of €35.43 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,773 Software companies, Pegasystems ranks worse than 69.77% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Pegasystems's Enterprise Value for the quarter that ended in Jun. 2026 was €4,007 Mil.
Pegasystems's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €161 Mil.
* 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.
Pegasystems EV-to-EBIT Related Terms
Pegasystems EV-to-EBIT Historical Data
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The historical data trend for Pegasystems's EV-to-EBIT 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.
MIL:1PEGA vs OCTV, BILL, SRAD: EV-to-EBIT Comparison
For the Software - Application subindustry, Pegasystems's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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.
Pegasystems EV-to-EBIT vs Software Industry
For the Software industry and Technology sector, Pegasystems's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Pegasystems's EV-to-EBIT falls into.
Pegasystems's current Enterprise Value is €4,284 Mil.
Pegasystems's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €161 Mil.
* 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.
Pegasystems (MIL:1PEGA) has a EV-to-EBIT of 26.63 as of Aug. 06, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Pegasystems and its competitors. This is 667% above median its historical median of 3.47. According to the industry distribution chart, Pegasystems ranks #1237 out of 1773 companies in the Software industry, placing it in the top 69.8%.
Is Pegasystems' EV-to-EBIT too high?
Pegasystems' current EV-to-EBIT of 26.63 is 667% above median its 10-year median of 3.47. The Software industry median EV-to-EBIT is 14.43. Pegasystems' value of 26.63 is 84.5% above this industry median. Based on the distribution chart, Pegasystems ranks #1237 out of 1773 companies in the Software industry, which is below the industry midpoint. Overall, Pegasystems has a GF Score™ of 56/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Pegasystems' EV-to-EBIT compare to OCTV and BILL?
According to the Software industry distribution chart, Pegasystems ranks #1237 out of 1773 companies for EV-to-EBIT. This places Pegasystems in the lower half of its industry. The industry median EV-to-EBIT is 14.43. Pegasystems' value of 26.63 is 84.5% above this benchmark. While the company's 10-year median is 3.47 vs. the industry median of 14.43, Pegasystems has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for a Software company?
The median EV-to-EBIT among Software companies is 14.43, based on 1,773 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pegasystems's current EV-to-EBIT of 26.63 is 84.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Pegasystems and its competitors. For the Software industry, the median EV-to-EBIT is 14.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pegasystems's current EV-to-EBIT is 26.63, which is 667% above median its own 10-year median of 3.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pegasystems stock overvalued right now?
Based on GuruFocus' analysis, Pegasystems (MIL:1PEGA) is currently considered Modestly Undervalued. The stock's GF Value™ is €35.43, compared to a current price of €27.24 — trading 23.1% below its estimated fair value. The current EV-to-EBIT is 26.63, which is 667% above median its 10-year median of 3.47 and 84.5% above the Software industry median of 14.43. Pegasystems' overall GF Score™ is 56/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Pegasystems (MIL:1PEGA), the current EV-to-EBIT is 26.63 as of Aug. 06, 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 Pegasystems (MIL:1PEGA) Overvalued in 2026?
Based on GuruFocus' analysis, Pegasystems stock appears to be undervalued.
The current stock price of €27.24 is trading 23.1% below its estimated GF Value™ of €35.43.
GuruFocus considers Pegasystems to be Modestly Undervalued.
Key valuation signals for MIL:1PEGA:
EV-to-EBIT: 26.63 (667% above median its 10-year median of 3.47)
GF Value™: €35.43 vs. price of €27.24 (23.1% below fair value)
Industry Position: 84.5% above the Software median (#1237 of 1773)
No single metric tells the full story. See the MIL:1PEGA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1983, Pegasystems provides a suite of solutions for customer engagement and business process management. The company's key offering is the Pega Infinity platform, which combines business process management with customer relationship management applications. The company focuses on enterprise-size customers in the financial, insurance, and healthcare industries.
56GF Score
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