PEGA — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($43.81)
DCF	$7890.14	+17909.5%
Graham Number	$14.88	-66.0%
Reverse DCF	—	implied g: -1.0%
DDM	$2.47	-94.4%
EV/EBITDA	$43.73	-0.2%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $571.99M

Near-term growth (yrs 1–5)(%)Rev: 2.7% / EPS: 104.3%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 10.08%

Computed WACC: 10.08%

Cost of equity (Re)10.18%(Rf 4.30% + β 1.07 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)98.99%

Debt weight (D/V)1.01%

Results

Intrinsic Value / share$6318.82

Current Price$43.81

Upside / Downside+14322.9%

Net Debt (used)-$349.83M

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	96.3%	100.3%	104.3%	108.3%	112.3%
7.0%	$10584.87	$11704.92	$12917.93	$14229.58	$15645.78
8.0%	$8125.36	$8984.47	$9914.85	$10920.86	$12007.01
9.0%	$6457.13	$7139.28	$7877.98	$8676.71	$9539.04
10.0%	$5261.08	$5816.36	$6417.66	$7067.80	$7769.67
11.0%	$4368.47	$4829.09	$5327.87	$5867.13	$6449.29

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $2.13

Book Value / share($)Yahoo: $4.62

Results

Graham Number$14.88

Current Price$43.81

Margin of Safety-66.0%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 10.08%

Terminal growth rate(%)

Computed WACC: 10.08%

Cost of equity (Re)10.18%(Rf 4.30% + β 1.07 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)98.99%

Debt weight (D/V)1.01%

Results

Current Price$43.81

Implied Near-term FCF Growth1.5%

Historical Revenue Growth2.7%

Historical Earnings Growth104.3%

Base FCF (TTM)$571.99M

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $0.12

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$2.47

Current Price$43.81

Upside / Downside-94.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $298.09M

Target EV/EBITDA multipleCurrent: 23.6×

Net Debt($B)Default: -$349.83M

Results

Implied Equity Value / share$43.73

Current Price$43.81

Upside / Downside-0.2%

Implied EV$7.04B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	-$2.35B	-$1.35B	-$349.83M	$650.17M	$1.65B
19.6x	$48.51	$42.59	$36.68	$30.76	$24.84
21.6x	$52.03	$46.12	$40.20	$34.29	$28.37
23.6x	$55.56	$49.65	$43.73	$37.81	$31.90
25.6x	$59.09	$53.17	$47.26	$41.34	$35.42
27.6x	$62.61	$56.70	$50.78	$44.87	$38.95

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