Progress Software Corporation
Progress Software Corporation ("Progress," the "Company," "we," "us," or "our") provides software products that enable our customers to develop, deploy, and manage responsible AI-powered applications and digital experiences with agility and ease. We operate in North America, Latin America, Europe, the Middle East and Africa ("EMEA"), and Asia and Australia ("Asia Pacific"), through local subsid…
$40.84
-$0.03 (-0.07%)
EOD Oct 16, 2026
15.68% operating margin is respectable but not wide. ROIC at 7.41%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 29.8%, still solid.
Net debt of $1.34B represents 5.8x FCF, leverage limits flexibility.
18.8x earnings, 5.2x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$1000M
▲ +29.8% YoY
Net Income (TTM)
$92M
▲ +6.9% YoY
Op. Margin
17.66%
▼ -0.8pp YoY
ROIC
8.53%
▲ +1.3pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$319M
▲ +11.2% YoY
Op. Cash Flow (TTM)
$328M
▲ +11.2% YoY
Net Debt
$1.15B
Cash & Equiv.
$114M
5Y CAGR: +17.2%
5Y CAGR: +10.7%
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SourceComputed from the 10-Q filed 28 Sept 2026, covering the period ending 31 Aug 2026, as reported to the SEC. Data last refreshed 14 Oct 2026. How this is calculated.
Price from market data, last close as of 16 Oct 2026. Fiscal year ends Nov. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is Progress Software (PRGS) overvalued?
At a P/E of 18.8 and a price-to-free-cash-flow of 5.2, Progress Software (PRGS) trades below a two-stage DCF intrinsic value of about $228.81 per share, so at $40.84 the stock looks undervalued (460.3% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Progress Software scores 68/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 0.0%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Progress Software's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $228.81 per share for PRGS, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $171.60. At today's $40.84, that puts the stock about 460.3% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Progress Software a high-quality business?+
Progress Software scores 68 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 17.7% operating margin and a 8.5% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does Progress Software (PRGS) pay a dividend, and how much?+
Yes, Progress Software pays a regular dividend of about $0.01 per share per year (typically in quarterly installments), a yield of roughly 0.0% at the current price. That is a payout ratio of about 0.5% of earnings, so the dividend is amply covered by earnings. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For PRGS's full payout history, growth streak and dividend-safety score, see the dividends tab.
Is Progress Software a good stock to buy right now?+
That depends on valuation and quality together, not either alone. PRGS currently trades below its estimated intrinsic value and scores 68/100 on quality (solid). It also yields about 0.0%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.