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Progress SoftwarePRGS -2.68%79 EV-to-EBIT is 17.17 as of Aug. 17, 2026, which is 27% below its 10-year median of 23.64. 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. Among 1,777 Software companies, Progress Software ranks worse than 58.58% 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.
Progress Software's Enterprise Value for the quarter that ended in May. 2026 was $2,581 Mil.
Progress Software's EBIT for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $173 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.
Progress Software EV-to-EBIT Related Terms
Progress Software EV-to-EBIT Historical Data
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The historical data trend for Progress Software'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.
For the Software - Infrastructure subindustry, Progress Software'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.
Progress Software EV-to-EBIT vs Software Industry
For the Software industry and Technology sector, Progress Software's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Progress Software's EV-to-EBIT falls into.
Progress Software's current Enterprise Value is $2,971 Mil.
Progress Software's EBIT for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $173 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.
Progress Software (PRGS) has a EV-to-EBIT of 17.17 as of Aug. 17, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Progress Software and its competitors. This is 27% below median its historical median of 23.64. According to the industry distribution chart, Progress Software ranks #1041 out of 1777 companies in the Software industry, placing it in the top 58.6%.
Is Progress Software's EV-to-EBIT too high?
Progress Software's current EV-to-EBIT of 17.17 is 27% below median its 10-year median of 23.64. The Software industry median EV-to-EBIT is 14.19. Progress Software's value of 17.17 is 21% above this industry median. Based on the distribution chart, Progress Software ranks #1041 out of 1777 companies in the Software industry, which is below the industry midpoint. 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 EV-to-EBIT compare to PICS and NN?
According to the Software industry distribution chart, Progress Software ranks #1041 out of 1777 companies for EV-to-EBIT. This places Progress Software in the lower half of its industry. The industry median EV-to-EBIT is 14.19. Progress Software's value of 17.17 is 21% above this benchmark. While the company's 10-year median is 23.64 vs. the industry median of 14.19, Progress Software 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 14.19, based on 1,777 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. Progress Software's current EV-to-EBIT of 17.17 is 21% 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 Progress Software and its competitors. For the Software industry, the median EV-to-EBIT is 14.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Progress Software's current EV-to-EBIT is 17.17, which is 27% below median its own 10-year median of 23.64. 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 $42.61 — trading 46% below its estimated fair value. The current EV-to-EBIT is 17.17, which is 27% below median its 10-year median of 23.64 and 21% above the Software industry median of 14.19. 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 EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Progress Software (PRGS), the current EV-to-EBIT is 17.17 as of Aug. 17, 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 $42.61 is trading 46% below its estimated GF Value™ of $78.84.
GuruFocus considers Progress Software to be Possible Value Trap.
Key valuation signals for PRGS:
EV-to-EBIT: 17.17 (27% below median its 10-year median of 23.64)
GF Value™: $78.84 vs. price of $42.61 (46% below fair value)
Industry Position: 21% above the Software median (#1041 of 1777)
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 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
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