Pegasystems Inc. (PEGA) intrinsic value & 10-year financials
Pegasystems Inc. (PEGA) has a Graham intrinsic value of $70.75 per share. At $34.54 on Oct 17, 2026, the stock trades 51% below that value. Over the last 10 fiscal years revenue grew 9.7% a year to $1.7B, with an average return on invested capital of 5.2%.
- Graham intrinsic value
- $70.75
- Share price (Oct 17, 2026)
- $34.54
- Price vs Graham value
- 51% below
- Market cap
- $6.4B
- Revenue (FY2025)
- $1.7B
- Revenue growth (10-yr CAGR)
- 9.7%
- ROIC (10-yr avg)
- 5.2%
- Free cash flow (FY2025)
- $490.7M
PEGA 10-year financial history
| Fiscal year | Revenue | Net income | EPS (diluted) | Free cash flow | Operating margin | ROIC |
|---|---|---|---|---|---|---|
| FY2025 | $1.7B | $393.4M | $2.13 | $490.7M | 15.1% | 55.3% |
| FY2024 | $1.5B | $99.2M | $0.56 | $338.2M | 8.3% | 34.0% |
| FY2023 | $1.4B | $67.8M | $0.36 | $201.0M | 5.7% | 45.0% |
| FY2022 | $1.3B | -$345.6M | -$2.11 | -$13.0M | -8.3% | -53.5% |
| FY2021 | $1.2B | -$63.0M | -$0.39 | $28.7M | -7.8% | -12.3% |
| FY2020 | $1.0B | -$61.4M | -$0.38 | -$25.9M | -14.1% | -15.1% |
| FY2019 | $911.4M | -$90.4M | -$0.57 | -$52.8M | -14.8% | -17.6% |
| FY2018 | $891.6M | $10.6M | $0.07 | $92.5M | -1.9% | -1.7% |
| FY2017 | $888.5M | $32.9M | $0.20 | $144.5M | 4.4% | 9.7% |
| FY2016 | $762.2M | $27.0M | $0.17 | $20.8M | 5.0% | 8.6% |
Source: annual 10-K filings on SEC EDGAR. Figures in USD.
Executive summary
PEGASYSTEMS INC is a consistent compounder, expanding top-line revenue at 9.6% annually over the past decade.
PEGASYSTEMS INC has historically struggled to out-earn its cost of capital, averaging just 4.3% ROIC.
PEGASYSTEMS INC has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.
Benjamin Graham lens
Under Benjamin Graham's formula using SEC EDGAR fundamentals, PEGASYSTEMS INC is modeled at 15.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $70.75 per share.