The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Pagaya Technologies Pretax Margin % Related Terms
Pagaya Technologies Pretax Margin % Historical Data
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The historical data trend for Pagaya Technologies's Pretax Margin % 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, Pagaya Technologies's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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.
Pagaya Technologies Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Pagaya Technologies's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Pagaya Technologies's Pretax Margin % 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.
Pagaya Technologies (PGY) has a Pretax Margin % of 9.13% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Pagaya Technologies and its competitors. According to the industry distribution chart, Pagaya Technologies ranks #1195 out of 2817 companies in the Software industry, placing it in the top 42.4%.
Is Pagaya Technologies' Pretax Margin % too high?
Pagaya Technologies' current Pretax Margin % is 9.13%. The Software industry median Pretax Margin % is 3.57. Pagaya Technologies' value of 9.13% is 155.7% above this industry median. Based on the distribution chart, Pagaya Technologies ranks #1195 out of 2817 companies in the Software industry, which is above the industry midpoint. Overall, Pagaya Technologies has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pagaya Technologies' Pretax Margin % compare to PICS and AI?
According to the Software industry distribution chart, Pagaya Technologies ranks #1195 out of 2817 companies for Pretax Margin %. This puts Pagaya Technologies in the upper half of its industry. The industry median Pretax Margin % is 3.57. Pagaya Technologies' value of 9.13% is 155.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.57, based on 2,817 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pagaya Technologies's current Pretax Margin % of 9.13% is 155.7% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Pagaya Technologies and its competitors. For the Software industry, the median Pretax Margin % is 3.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pagaya Technologies's current Pretax Margin % is 9.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pagaya Technologies stock overvalued right now?
Based on GuruFocus' analysis, Pagaya Technologies (PGY) is currently considered Modestly Overvalued. The stock's GF Value™ is $15.33, compared to a current price of $17.79 — trading 16% above its estimated fair value. The current Pretax Margin % is 9.13% and 155.7% above the Software industry median of 3.57. Pagaya Technologies' overall GF Score™ is 77/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Pagaya Technologies (PGY), the current Pretax Margin % is 9.13% as of Mar. 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 Pagaya Technologies (PGY) Overvalued in 2026?
Based on GuruFocus' analysis, Pagaya Technologies stock appears to be overvalued.
The current stock price of $17.79 is trading 16% above its estimated GF Value™ of $15.33.
GuruFocus considers Pagaya Technologies to be Modestly Overvalued.
Key valuation signals for PGY:
Pretax Margin %: 9.13%
GF Value™: $15.33 vs. price of $17.79 (16% above fair value)
Industry Position: 155.7% above the Software median (#1195 of 2817)
No single metric tells the full story. See the PGY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pagaya Technologies Ltd is a product-focused technology company. It uses machine learning, a vast data network, and an AI-driven approach to offer comprehensive consumer credit and residential real estate products for its partners, their customers, and investors. Its suite of products includes Decline Monetization, Dual Look, First Look, Affiliate Optimizer Engine, Direct Marketing Engine, and FastPass, providing lenders with an AI-powered credit and acquisition ecosystem that helps them approve more borrowers, capture more demand, and grow without adding risk. Geographically, the company generates maximum revenue from its business in the United States.
77GF Score
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