GWRE Valuation

Guidewire Software Inc

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218.260

-2.71(-1.226%)1D

GWRE Relative Valuation

GWRE's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, GWRE is overvalued; if below, it's undervalued.

Historical Valuation

Guidewire Software Inc (GWRE) is now in the Fair zone, suggesting that its current forward PS ratio of 220.97 is considered Fairly compared with the five-year average of 191.24. The fair price of Guidewire Software Inc (GWRE) is between to according to relative valuation methord.

Relative Value

Fair Zone

Current Price：218.26

Fair

72.93

Trailing

Forward

57.68

EV/EBITDA

Guidewire Software Inc. (GWRE) has a current EV/EBITDA of 57.68. The 5-year average EV/EBITDA is 221.25. The thresholds are as follows: Strongly Undervalued below -1645.14, Undervalued between -1645.14 and -711.94, Fairly Valued between 1154.45 and -711.94, Overvalued between 1154.45 and 2087.65, and Strongly Overvalued above 2087.65. The current Forward EV/EBITDA of 57.68 falls within the Historic Trend Line -Fairly Valued range.

66.56

EV/EBIT

Guidewire Software Inc. (GWRE) has a current EV/EBIT of 66.56. The 5-year average EV/EBIT is -11296.53. The thresholds are as follows: Strongly Undervalued below -102649.27, Undervalued between -102649.27 and -56972.90, Fairly Valued between 34379.83 and -56972.90, Overvalued between 34379.83 and 80056.20, and Strongly Overvalued above 80056.20. The current Forward EV/EBIT of 66.56 falls within the Historic Trend Line -Fairly Valued range.

218.26

Guidewire Software Inc. (GWRE) has a current PS of 218.26. The 5-year average PS is 12.47. The thresholds are as follows: Strongly Undervalued below -32.37, Undervalued between -32.37 and -9.95, Fairly Valued between 34.88 and -9.95, Overvalued between 34.88 and 57.30, and Strongly Overvalued above 57.30. The current Forward PS of 218.26 falls within the Strongly Overvalued range.

50.90

P/OCF

Guidewire Software Inc. (GWRE) has a current P/OCF of 50.90. The 5-year average P/OCF is 112.21. The thresholds are as follows: Strongly Undervalued below -163.68, Undervalued between -163.68 and -25.73, Fairly Valued between 250.16 and -25.73, Overvalued between 250.16 and 388.11, and Strongly Overvalued above 388.11. The current Forward P/OCF of 50.90 falls within the Historic Trend Line -Fairly Valued range.

55.38

P/FCF

Guidewire Software Inc. (GWRE) has a current P/FCF of 55.38. The 5-year average P/FCF is 92.84. The thresholds are as follows: Strongly Undervalued below -312.37, Undervalued between -312.37 and -109.76, Fairly Valued between 295.44 and -109.76, Overvalued between 295.44 and 498.05, and Strongly Overvalued above 498.05. The current Forward P/FCF of 55.38 falls within the Historic Trend Line -Fairly Valued range.

Guidewire Software Inc (GWRE) has a current Price-to-Book (P/B) ratio of 12.82. Compared to its 3-year average P/B ratio of 8.93 , the current P/B ratio is approximately 43.61% higher. Relative to its 5-year average P/B ratio of 7.51, the current P/B ratio is about 70.70% higher. Guidewire Software Inc (GWRE) has a Forward Free Cash Flow (FCF) yield of approximately 0.02%. Compared to its 3-year average FCF yield of 0.76%, the current FCF yield is approximately -97.93% lower. Relative to its 5-year average FCF yield of 0.57% , the current FCF yield is about -97.22% lower.

12.66

P/B

Median3y

8.93

Median5y

7.51

0.02

FCF Yield

Median3y

0.76

Median5y

0.57

Competitors Valuation Multiple

The average P/S ratio for GWRE's competitors is 191.89, providing a benchmark for relative valuation. Guidewire Software Inc Corp (GWRE) exhibits a P/S ratio of 218.26, which is 13.74% above the industry average. Given its robust revenue growth of 22.32%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

GWRE.N

Guidewire Software Inc

SS&C Technologies Holdings Inc

CACI International Inc

587.29

11.22%

12.97B

Performance Decomposition

Market capitalization of GWRE increased by 7.58% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 5.75 to 14.57.

The secondary factor is the Revenue Growth, contributed 22.32%to the performance.

Overall, the performance of GWRE in the past 1 year is driven by Margin Expansion. Which is more sustainable.

22.32%

291.52M → 356.57M

Revenue Growth

153.39%

5.75 → 14.57

Margin Expansion

-168.13%

-395.50 → 269.46

P/E Change

7.58%