PEGA

Pegasystems Inc.

TMT


Presented:05/21/2020
Price:$91.88
Cap:$7.36B
Current Price:$73.49
Cap:$6.28B

Presented

Date05/21/2020
Price$91.88
Market Cap$7.36B
Ent Value$5.71B
P/E RatioN/A
Book Value$7.08
Div Yield0.13%
Shares O/S80.09M
Ave Daily Vol486,974
Short Int3.94%

Current

Price$73.49
Market Cap$6.28B
Pegasystems, Inc. engages in the development, market, license, and support of software, which allows organizations to build, deploy, and change enterprise applications. The company was founded by Alan Trefler in 1983 and is headquartered in Cambridge, MA.

Publicly traded companies mentioned herein: Bank of America Corp (BAC), Forrester Research Inc (FORR), Gartner Inc (IT), Pegasystems Inc (PEGA)

Highlights

The presenter is long shares of Pegasystems Inc (PEGA), a ~$7B market cap, Boston-based software company, led by Founder and majority shareholder Alan Trefler (50.06%). Despite going public in 1996, he considers PEGA the best software company people haven’t heard of, due to its minimal sell-side coverage. Founder Alan Trefler still owns 50.06% and runs the company. PEGA doesn’t participate in M&A, opting to focus on organic growth instead, and the presenter views it as a “fantastic” company that will grow topline 20% – 30% annually for the next 5 – 10 years. He expects the company’s stock price to grow in line with revenue over that timeframe, as well, but also believes this topline growth could justify a higher multiple than its 7x current year revenue valuation. 

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Idea Discussion

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