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 Undervalued zone, suggesting that its current forward PS ratio of 0.00 is considered Undervalued compared with the five-year average of 168.50. The fair price of Guidewire Software Inc (GWRE) is between +Inf to +Inf according to relative valuation methord. Compared to the current price of 211.07 USD , Guidewire Software Inc is Undervalued By Fair.
Relative Value
Fair Zone
+Inf-+Inf
Current Price：211.07
Fair
Undervalued
71.21
PE
1Y
3Y
5Y
Trailing
Forward
59.22
EV/EBITDA
Guidewire Software Inc. (GWRE) has a current EV/EBITDA of 59.22. The 5-year average EV/EBITDA is 208.08. The thresholds are as follows: Strongly Undervalued below -1634.65, Undervalued between -1634.65 and -713.29, Fairly Valued between 1129.44 and -713.29, Overvalued between 1129.44 and 2050.80, and Strongly Overvalued above 2050.80. The current Forward EV/EBITDA of 59.22 falls within the Historic Trend Line -Fairly Valued range.
64.62
EV/EBIT
Guidewire Software Inc. (GWRE) has a current EV/EBIT of 64.62. The 5-year average EV/EBIT is -11009.66. The thresholds are as follows: Strongly Undervalued below -101593.84, Undervalued between -101593.84 and -56301.75, Fairly Valued between 34282.42 and -56301.75, Overvalued between 34282.42 and 79574.51, and Strongly Overvalued above 79574.51. The current Forward EV/EBIT of 64.62 falls within the Historic Trend Line -Fairly Valued range.
12.98
PS
Guidewire Software Inc. (GWRE) has a current PS of 12.98. The 5-year average PS is 10.26. The thresholds are as follows: Strongly Undervalued below 4.31, Undervalued between 4.31 and 7.28, Fairly Valued between 13.23 and 7.28, Overvalued between 13.23 and 16.20, and Strongly Overvalued above 16.20. The current Forward PS of 12.98 falls within the Historic Trend Line -Fairly Valued range.
50.08
P/OCF
Guidewire Software Inc. (GWRE) has a current P/OCF of 50.08. The 5-year average P/OCF is 109.75. The thresholds are as follows: Strongly Undervalued below -163.98, Undervalued between -163.98 and -27.11, Fairly Valued between 246.62 and -27.11, Overvalued between 246.62 and 383.48, and Strongly Overvalued above 383.48. The current Forward P/OCF of 50.08 falls within the Historic Trend Line -Fairly Valued range.
54.97
P/FCF
Guidewire Software Inc. (GWRE) has a current P/FCF of 54.97. The 5-year average P/FCF is 88.72. The thresholds are as follows: Strongly Undervalued below -308.56, Undervalued between -308.56 and -109.92, Fairly Valued between 287.35 and -109.92, Overvalued between 287.35 and 485.99, and Strongly Overvalued above 485.99. The current Forward P/FCF of 54.97 falls within the Historic Trend Line -Fairly Valued range.
Guidewire Software Inc (GWRE) has a current Price-to-Book (P/B) ratio of 12.52. Compared to its 3-year average P/B ratio of 9.08 , the current P/B ratio is approximately 37.90% higher. Relative to its 5-year average P/B ratio of 7.58, the current P/B ratio is about 65.12% higher. Guidewire Software Inc (GWRE) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 0.80%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 0.58% , the current FCF yield is about -100.00% lower.
12.24
P/B
Median3y
9.08
Median5y
7.58
1.61
FCF Yield
Median3y
0.80
Median5y
0.58
Competitors Valuation Multiple
The average P/S ratio for GWRE's competitors is 2.10, providing a benchmark for relative valuation. Guidewire Software Inc Corp (GWRE) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 26.53%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of GWRE increased by 25.20% 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.
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FAQ
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