GWRE PE Ratio & Valuation,Is GWRE Overvalued

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 10.88 is considered Fairly compared with the five-year average of 129.55. The fair price of Guidewire Software Inc (GWRE) is between 120.78 to 201.40 according to relative valuation methord.

Relative Value

Fair Zone

120.78-201.40

Current Price：187.68

Fair

59.19

49.56

EV/EBITDA

Guidewire Software Inc. (GWRE) has a current EV/EBITDA of 49.56. The 5-year average EV/EBITDA is 190.25. The thresholds are as follows: Strongly Undervalued below -1641.02, Undervalued between -1641.02 and -725.38, Fairly Valued between 1105.88 and -725.38, Overvalued between 1105.88 and 2021.52, and Strongly Overvalued above 2021.52. The current Forward EV/EBITDA of 49.56 falls within the Historic Trend Line -Fairly Valued range.

53.64

EV/EBIT

Guidewire Software Inc. (GWRE) has a current EV/EBIT of 53.64. The 5-year average EV/EBIT is -10902.12. The thresholds are as follows: Strongly Undervalued below -101632.68, Undervalued between -101632.68 and -56267.40, Fairly Valued between 34463.16 and -56267.40, Overvalued between 34463.16 and 79828.44, and Strongly Overvalued above 79828.44. The current Forward EV/EBIT of 53.64 falls within the Historic Trend Line -Fairly Valued range.

10.88

Guidewire Software Inc. (GWRE) has a current PS of 10.88. The 5-year average PS is 10.19. The thresholds are as follows: Strongly Undervalued below 4.35, Undervalued between 4.35 and 7.27, Fairly Valued between 13.11 and 7.27, Overvalued between 13.11 and 16.04, and Strongly Overvalued above 16.04. The current Forward PS of 10.88 falls within the Historic Trend Line -Fairly Valued range.

42.14

P/OCF

Guidewire Software Inc. (GWRE) has a current P/OCF of 42.14. The 5-year average P/OCF is 107.30. The thresholds are as follows: Strongly Undervalued below -166.47, Undervalued between -166.47 and -29.58, Fairly Valued between 244.19 and -29.58, Overvalued between 244.19 and 381.07, and Strongly Overvalued above 381.07. The current Forward P/OCF of 42.14 falls within the Historic Trend Line -Fairly Valued range.

45.87

P/FCF

Guidewire Software Inc. (GWRE) has a current P/FCF of 45.87. The 5-year average P/FCF is 82.50. The thresholds are as follows: Strongly Undervalued below -306.76, Undervalued between -306.76 and -112.13, Fairly Valued between 277.14 and -112.13, Overvalued between 277.14 and 471.77, and Strongly Overvalued above 471.77. The current Forward P/FCF of 45.87 falls within the Historic Trend Line -Fairly Valued range.

Guidewire Software Inc (GWRE) has a current Price-to-Book (P/B) ratio of 10.40. Compared to its 3-year average P/B ratio of 9.26 , the current P/B ratio is approximately 12.35% higher. Relative to its 5-year average P/B ratio of 7.65, the current P/B ratio is about 36.07% higher. Guidewire Software Inc (GWRE) has a Forward Free Cash Flow (FCF) yield of approximately 1.79%. Compared to its 3-year average FCF yield of 0.86%, the current FCF yield is approximately 107.48% lower. Relative to its 5-year average FCF yield of 0.59% , the current FCF yield is about 205.87% lower.

10.40

P/B

Median3y

9.26

Median5y

7.65

1.79

FCF Yield

Median3y

0.86

Median5y

0.59

Competitors Valuation Multiple

The average P/S ratio for GWRE's competitors is 5.14, providing a benchmark for relative valuation. Guidewire Software Inc Corp (GWRE) exhibits a P/S ratio of 10.88, which is 111.64% above the industry average. Given its robust revenue growth of 26.53%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of GWRE decreased by 11.17% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 3.48 to 9.41.

The secondary factor is the Revenue Growth, contributed 26.53%to the performance.

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

26.53%

262.90M → 332.64M

Revenue Growth

170.40%

3.48 → 9.41

Margin Expansion

-208.10%

-163.64 → 176.90

P/E Change

-11.17%

211.27 → 187.68

Mkt Cap Growth

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Frequently Asked Questions

Is Guidewire Software Inc (GWRE) currently overvalued or undervalued?

What is Guidewire Software Inc (GWRE) fair value?

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. The fair price of Guidewire Software Inc (GWRE) is between 120.78 to 201.40 according to relative valuation methord.

How does GWRE's valuation metrics compare to the industry average?

What is the current P/B ratio for Guidewire Software Inc (GWRE) as of Jan 09 2026?

As of Jan 09 2026, Guidewire Software Inc (GWRE) has a P/B ratio of 10.40. This indicates that the market values GWRE at 10.40 times its book value.

What is the current FCF Yield for Guidewire Software Inc (GWRE) as of Jan 09 2026?

As of Jan 09 2026, Guidewire Software Inc (GWRE) has a FCF Yield of 1.79%. This means that for every dollar of Guidewire Software Inc’s market capitalization, the company generates 1.79 cents in free cash flow.

What is the current Forward P/E ratio for Guidewire Software Inc (GWRE) as of Jan 09 2026?

As of Jan 09 2026, Guidewire Software Inc (GWRE) has a Forward P/E ratio of 59.19. This means the market is willing to pay $59.19 for every dollar of Guidewire Software Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Guidewire Software Inc (GWRE) as of Jan 09 2026?

As of Jan 09 2026, Guidewire Software Inc (GWRE) has a Forward P/S ratio of 10.88. This means the market is valuing GWRE at $10.88 for every dollar of expected revenue over the next 12 months.

GWRE Valuation