Progress Software shares have surged 30.7% over the past week, yet a Discounted Cash Flow analysis suggests the stock remains about 44.4% undervalued relative to an intrinsic value estimate of roughly $70 per share. The DCF model projects future free cash flows from a base of approximately $306.3 million in trailing twelve-month free cash flow, assuming continued growth. The company recently raised full-year guidance on stronger AI-related demand, but the share price around $39 still sits well below the modeled fair value. On a price-to-earnings basis, Progress Software trades at about 18.5 times, close to a tailored fair multiple of 18.9 times and below the software industry average of roughly 28.0 times. Community narratives remain split, with a bull case seeing 23% upside and a bear case suggesting 15% overvaluation, hinging on execution and AI-driven cash flow durability.
Progress Software CorporationDCF analysis suggests 44% undervaluation and company raised full-year guidance on AI demand.