PEGA Stock Risk & Deep Value Analysis
Pegasystems Inc
Technology • Software - Application
DVR Score
out of 10
The Bottom Line on PEGA
We analyzed Pegasystems Inc using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran PEGA through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Here's what we found.
📈PEGA Performance Overview3yr weekly
Unlock PEGA Performance Chart
See 3 years of price history, quarterly revenue trends, and DVR score changes
Weekly adjusted close · Quarterly revenue & EPS · DVR score history
PEGA Stock Risk Analysis
Overall Risk
Aggressive
Financial Risk
Medium
Market Risk
Medium
About Pegasystems Inc (PEGA)
Sector
Technology
Industry
Software - Application
Market Cap Category
mid
Market Cap
$10.68B
PEGA Deep Value Analysis
Compare PEGA to Similar Stocks
See how Pegasystems Inc stacks up against related companies in our head-to-head analysis.
PEGA Red Flags & Warning Signs
- ⚠
Q1 Earnings miss or weak forward guidance, particularly on ARR
- ⚠
Increased competitive pressure from major players (e.g., Salesforce, ServiceNow, Microsoft) with new AI offerings
- ⚠
Slower-than-expected client migration to the cloud, impacting financial metrics
- ⚠
Macroeconomic slowdown affecting enterprise IT spending decisions
Unlock PEGA Red Flags & Risk Warnings
Create a free account to see the full analysis
PEGA Financial Health Metrics
Market Cap
$10.68B
P/E Ratio
40.80
PEGA Competitive Moat Analysis
Sign in to unlockMoat Rating
Narrow
Moat Trend
Stable
Moat Sources
3 Identified
Pega's moat is durable due to the high integration costs and mission-critical nature of its software for large enterprises, coupled with its proprietary technology. Customers are deeply embedded, making it difficult to switch to competitors. However, the moat is constantly challenged by aggressive innovation from competitors.
PEGA Competitive Moat Analysis
Sign up to see competitive advantages
PEGA Catalysts & Growth Drivers
Near-Term (0-6 months)
- •Q1 2026 Earnings Report (Estimated late April 2026)
- •Launch of new Pega GenAI features and integrations
- •Key customer wins demonstrating successful SaaS migration and adoption
Medium-Term (6-18 months)
- •Acceleration in Cloud ARR growth rates exceeding market expectations
- •Expansion into new high-growth industry verticals (e.g., healthcare, public sector)
- •Strategic partnerships with hyperscalers or major consulting firms to broaden reach
Long-Term (18+ months)
- •Achieving market leadership in specific enterprise AI/automation niches
- •Full realization of SaaS model benefits leading to significant margin expansion and FCF
- •Disruption of legacy BPM and CRM markets through superior AI-driven low-code platforms
Catalysts & Growth Drivers
Upgrade to Premium to see catalysts
PEGA Bull Case: What Could Go Right
- ✓
Consistent acceleration in cloud ARR growth rates (above 20% YoY)
- ✓
Expansion of operating margins and free cash flow as SaaS transition benefits materialize
- ✓
Significant new customer acquisitions or expansions of existing contracts
- ✓
Positive analyst revisions and increasing institutional ownership
Bull Case Analysis
See what could go right with Premium
Never miss a move on PEGA
Create a free account to set price alerts and get notified on Telegram when PEGA hits your targets.
📊 Explore More Stock Analysis
Get comprehensive Deep Value Reports for thousands of stocks. Research risk, financial health, and investment potential.
FAQ
What is the DVR Score for Pegasystems Inc (PEGA)?
As of February 24, 2026, Pegasystems Inc has a DVR Score of 4.4 out of 10, placing it in the "Proceed with Caution" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of Pegasystems Inc?
Pegasystems Inc's market capitalization is approximately $10.7B. The company operates in the Technology sector within the Software - Application industry.
What ticker symbol does Pegasystems Inc use?
PEGA is the ticker symbol for Pegasystems Inc. The company trades on the NMS.
What is the risk level for PEGA stock?
Our analysis rates Pegasystems Inc's overall risk as Aggressive. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of PEGA?
Pegasystems Inc currently has a price-to-earnings (P/E) ratio of 40.8. This is above the market average, suggesting the stock may be priced for high growth expectations.
Does Pegasystems Inc pay a dividend?
Yes, Pegasystems Inc pays a dividend with a current yield of approximately 19.00%.
How often is the PEGA DVR analysis updated?
Our AI-powered analysis of Pegasystems Inc is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on February 24, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research and consult with a qualified financial advisor.