Progress SoftwarePRGS -1.94%73 EV-to-FCF is 9.17 as of Jul. 05, 2026, which is 39% below its 10-year median of 15.04. GuruFocus rates PRGS with a GF Score™ of 73/100 and a GF Value™ of $78.71 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,592 Software companies, Progress Software ranks better than 69.54% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Progress Software's Enterprise Value is $2,799 Mil.
Progress Software's Free Cash Flow for the trailing twelve months (TTM) ended in May. 2026 was $305 Mil. Therefore, Progress Software's EV-to-FCF for today is 9.17.
The historical rank and industry rank for Progress Software's EV-to-FCF or its related term are showing as below:
PRGS'
s EV-to-FCF Range Over the Past 10 Years
Min: 8.12 Med: 15.04 Max: 24.75
Current: 9.17
During the past 13 years, the highest EV-to-FCF of Progress Software was 24.75. The lowest was 8.12. And the median was 15.04.
PRGS's EV-to-FCF is ranked better than 69.54% of 1592
companies
in the Software industry
Industry Median: 14.62
vs PRGS: 9.17
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Progress Software's PE Ratio (TTM) for today is calculated as:
Progress Software's share price for today is $38.40.
Progress Software's Earnings per Share (Diluted) 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 $2.060.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Progress Software EV-to-FCF Related Terms
Progress Software EV-to-FCF Historical Data
* Premium members only.
The historical data trend for Progress Software's EV-to-FCF 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-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Software Industry
For the Software industry and Technology sector, Progress Software's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Progress Software's EV-to-FCF falls into.
Progress Software's current Enterprise Value is $2,799 Mil.
Progress Software's Free Cash Flow 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 $305 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-FCF of 9.17 as of Jul. 05, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Progress Software and its competitors. This is 39% below median its historical median of 15.04. Over the past decade, Progress Software's EV-to-FCF has ranged from 8.12 to 24.75. According to the industry distribution chart, Progress Software ranks #485 out of 1592 companies in the Software industry, placing it in the top 30.5%.
Is Progress Software's EV-to-FCF too high?
Progress Software's current EV-to-FCF of 9.17 is 39% below median its 10-year median of 15.04. Over the past 10 years, this metric has ranged from a low of 8.12 to a high of 24.75. The Software industry median EV-to-FCF is 14.62. Progress Software's value of 9.17 is 37.3% below this industry median. Based on the distribution chart, Progress Software ranks #485 out of 1592 companies in the Software industry, which is above the industry midpoint. Overall, Progress Software has a GF Score™ of 73/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Progress Software's EV-to-FCF compare to AI and PICS?
According to the Software industry distribution chart, Progress Software ranks #485 out of 1592 companies for EV-to-FCF. This puts Progress Software in the upper half of its industry. The industry median EV-to-FCF is 14.62. Progress Software's value of 9.17 is 37.3% below this benchmark. Historically, Progress Software's own EV-to-FCF has ranged from 8.12 to 24.75 over the past decade. While the company's 10-year median is 15.04 vs. the industry median of 14.62, Progress Software has consistently been below 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-FCF for a Software company?
The median EV-to-FCF among Software companies is 14.62, based on 1,592 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Progress Software's current EV-to-FCF of 9.17 is 37.3% below 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Progress Software and its competitors. For the Software industry, the median EV-to-FCF is 14.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Progress Software's current EV-to-FCF is 9.17, which is 39% below median its own 10-year median of 15.04. 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 $78.71, compared to a current price of $38.40 — trading 51.2% below its estimated fair value. The current EV-to-FCF is 9.17, which is 39% below median its 10-year median of 15.04 and 37.3% below the Software industry median of 14.62. Progress Software's overall GF Score™ is 73/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Progress Software (PRGS), the current EV-to-FCF is 9.17 as of Jul. 05, 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 $38.40 is trading 51.2% below its estimated GF Value™ of $78.71.
GuruFocus considers Progress Software to be Possible Value Trap.
Key valuation signals for PRGS:
EV-to-FCF: 9.17 (39% below median its 10-year median of 15.04)
GF Value™: $78.71 vs. price of $38.40 (51.2% below fair value)
Industry Position: 37.3% below the Software median (#485 of 1592)
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.
73GF Score
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