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Is this Large Market Cap Stock target price reasonable for Pegasystems Inc. (NASDAQ:PEGA)?

The company in question is, Pegasystems Inc. (NASDAQ:PEGA) currently with a stock price of 29.17 (1.41% today). The market cap for Pegasystems Inc. is 2209.34, and is in the sector Technology, and Business Software & Services industry. The target price for Pegasystems Inc. is 31.5. Currently Pegasystems Inc. is trading with a P/E of 57.06, and a forward P/E of 26.22. Average volume for Pegasystems Inc. is 248.15 and so far today it is 148613.

Performance in the last year for Pegasystems Inc. has been 13.33%. For EPS growth, Pegasystems Inc. has seen a growth of 8.50%, and is looking to grow in the next year to 20.55%. More long term stats show that EPS growth has been 50.70% over the last five years and could be 28.00% for the next five years. Pegasystems Inc. has seen sales growth quarter over quarter at 16.70%, with EPS growth quarter over quarter at 17.40%. The 20-day simple moving average is 7.12%, with the 200-day simple moving average coming to 12.28%.

Since the IPO date for Pegasystems Inc. on the 7/19/1996, Pegasystems Inc. has seen performance year to date to be 4.93%. With Pegasystems Inc. trading at 29.17, the dividend yield is 0.42%, and the EPS is 0.5.

So could Pegasystems Inc., be undervalued? Well as said before P/E is 57.06. The PEG is 2.04, P/S is 3.01 and the P/B is at 6.75. The P/cash is 16.06, with P/free cash flow at 276.17.

Pegasystems Inc. ability to deal with debt shows that the current ratio is 1.6, and the quick ratio is 1.6. This is with long term debt/equity at 0, and total debt/equity at 0.

In terms of margins, Pegasystems Inc. has a gross margin of 69.30%, an operating margin of 9.30% and a profit margin of 5.40%.Payout ratio for Pegasystems Inc. is 23.00%. Return on assets come to 6.60% with return on investment coming to 12.50%.

Insider ownership for Pegasystems Inc., is at 1.30% and institutional ownership comes to 43.30%. Outstanding shares are at 76.82. While shares float is 35.6. The float short is currently 4.17%, and short ratio is 5.98.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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