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Progress SoftwarePRGS -2.65%79 PEG Ratio is 0.45 as of Aug. 17, 2026, which is 24% below its 10-year median of 0.59. 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 818 Software companies, Progress Software ranks better than 84.72% on this metric.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Progress Software's PEG Ratio or its related term are showing as below:
PRGS'
s PEG Ratio Range Over the Past 10 Years
Min: 0.14 Med: 0.59 Max: 20.97
Current: 0.45
During the past 13 years, Progress Software's highest PEG Ratio was 20.97. The lowest was 0.14. And the median was 0.59.
PRGS's PEG Ratio is ranked better than 84.72% of 818
companies
in the Software industry
Industry Median: 1.345
vs PRGS: 0.45
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Progress Software (NAS:PRGS) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Progress Software PEG Ratio Related Terms
Progress Software PEG Ratio Historical Data
* Premium members only.
The historical data trend for Progress Software's PEG Ratio 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 PEG Ratio, along with its competitors' market caps and PEG Ratio 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 PEG Ratio vs Software Industry
For the Software industry and Technology sector, Progress Software's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Progress Software's PEG Ratio falls into.
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Progress Software (PRGS) has a PEG Ratio of 0.45 as of Aug. 17, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Progress Software and its competitors. This is 24% below median its historical median of 0.59. Over the past decade, Progress Software's PEG Ratio has ranged from 0.14 to 20.97. According to the industry distribution chart, Progress Software ranks #125 out of 818 companies in the Software industry, placing it in the top 15.3%.
Is Progress Software's PEG Ratio too high?
Progress Software's current PEG Ratio of 0.45 is 24% below median its 10-year median of 0.59. Over the past 10 years, this metric has ranged from a low of 0.14 to a high of 20.97. The Software industry median PEG Ratio is 1.35. Progress Software's value of 0.45 is 66.5% below this industry median. Based on the distribution chart, Progress Software ranks #125 out of 818 companies in the Software industry, which is in the top quartile — a strong position relative to peers. 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 PEG Ratio compare to PICS and NN?
According to the Software industry distribution chart, Progress Software ranks #125 out of 818 companies for PEG Ratio. This places Progress Software in the top 15% of its industry — outperforming the majority of peers. The industry median PEG Ratio is 1.35. Progress Software's value of 0.45 is 66.5% below this benchmark. Historically, Progress Software's own PEG Ratio has ranged from 0.14 to 20.97 over the past decade. While the company's 10-year median is 0.59 vs. the industry median of 1.35, 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 PEG Ratio for a Software company?
The median PEG Ratio among Software companies is 1.35, based on 818 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Progress Software's current PEG Ratio of 0.45 is 66.5% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Progress Software and its competitors. For the Software industry, the median PEG Ratio is 1.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Progress Software's current PEG Ratio is 0.45, which is 24% below median its own 10-year median of 0.59. 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 $42.62 — trading 45.9% below its estimated fair value. The current PEG Ratio is 0.45, which is 24% below median its 10-year median of 0.59 and 66.5% below the Software industry median of 1.35. 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 PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Progress Software (PRGS), the current PEG Ratio is 0.45 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 $42.62 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:
PEG Ratio: 0.45 (24% below median its 10-year median of 0.59)
GF Value™: $78.84 vs. price of $42.62 (45.9% below fair value)
Industry Position: 66.5% below the Software median (#125 of 818)
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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