Stock fact sheet · data as of
Progress Software Corporation (PRGS): fair value, margin of safety and Wheel Score
Technology · Software - Infrastructure · United States · Value
Is PRGS undervalued?
At 38.61 (close of 16 Oct 2026), PRGS trades 52% below the GLS average fair value of 79.93. That average comes from 8 models run on the latest filings, and 4 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Progress Software Corporation the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
The 8 models disagree widely: GLS Growth gives 17.21 while DCF gives 170.71. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files PRGS under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for PRGS
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 170.71 | +342% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 25.56 | -34% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 78.28 | +103% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 30.46 | -21% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 17.21 | -55% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 165.80 | +329% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 126.39 | +227% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 25.01 | -35% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -38.64 | -200% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 52.50 | +36% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health PRGS scores 8/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 6.7 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are moderate - ROIC 5.5%, ROE 15.3%, ROA 3.0% - with debt at 1.78 times equity and a free-cash-flow yield of 20.2%.
Progress Software Corporation pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Maintenance and Services 74%, Software Licenses 26% (quarter Q3 FY2026).
Institutional ownership scores 10/10, insider activity 2/10 and Congressional trading 1/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 5.5% |
|---|---|---|---|
| GLS Moat | 6.7 / 10 | ROE | 15.3% |
| Debt / equity | 1.78 | ROA | 3.0% |
| Free-cash-flow yield | 20.2% | Payout ratio | 1% |
| Institutions | 10 / 10 | Insiders · Congress | 2 · 1 / 10 |
Wheel Score 86: Prime
PRGS scores 86 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 25/25), Piotroski health (18/20), the GLS moat (10/15), the option premium on offer (20/20) and how easily the stock trades (13/20).
Implied volatility is 52% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 9,873 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 444k shares a day on a market cap of $1.6B, with a beta of 0.89; the Stability part of the Wheel Score gives that 13 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 52% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 10 / 15 | moat 6.7/10 | |
| Premium | 20 / 20 | implied volatility 52% | |
| Stability | 13 / 20 | 444k shares/day, $1.6B cap, beta 0.89 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for PRGS in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Software - Infrastructure
The 12 companies below are the closest to Progress Software Corporation by market cap within the Software - Infrastructure industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| BAND Bandwidth Inc. | 49.60 | 8.94 | -455% | 31Weak | $1.6B |
| NYAX Nayax Ltd. | 44.79 | 46.52 | +4% | 39No options | $1.7B |
| NN NextNav Inc. | 10.71 | - | - | 45Weak | $1.5B |
| PICS PicS N.V. | 13.22 | 133.49 | +90% | 39No options | $1.7B |
| PGY Pagaya Technologies Ltd. | 16.81 | 61.12 | +72% | 70Good | $1.4B |
| MQ Marqeta, Inc. | 18.99 | 9.00 | -111% | 55Fair | $1.8B |
| ATEN A10 Networks, Inc. | 25.39 | 11.36 | -124% | 55Fair | $1.8B |
| RDWR Radware Ltd. | 28.72 | 14.30 | -101% | 53Fair | $1.2B |
| GCT GigaCloud Technology Inc. | 59.34 | 105.83 | +44% | 83Prime | $2.1B |
| RAMP LiveRamp Holdings, Inc. | 37.61 | 76.12 | +51% | 72Good | $2.3B |
| TUYA Tuya Inc. | 1.69 | 3.27 | +48% | 64Fair | $1.0B |
| PAYO Payoneer Global Inc. | 7.14 | 7.93 | +10% | 72Good | $2.4B |
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Start free See the Sunday ScanQuestions about PRGS
Is PRGS undervalued right now?
By the GLS models, yes: at 38.61 the stock is 52% below the average fair value of 79.93 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of PRGS and what does it mean?
PRGS scores 86 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for PRGS?
79.93 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Progress Software Corporation report earnings next?
No upcoming earnings date is recorded for PRGS in our calendar as of 16 Oct 2026; the Calendars page is refreshed every morning.
Does PRGS have listed options, and how liquid are they?
Yes. The nightly snapshot found 270 listed contracts with 9,873 open interest across all expiries and implied volatility of 52% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.