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 Overvalued zone, suggesting that its current forward PS ratio of 11.90 is considered Overvalued compared with the five-year average of 156.73. The fair price of Guidewire Software Inc (GWRE) is between 113.84 to 190.77 according to relative valuation methord. Compared to the current price of 193.69 USD , Guidewire Software Inc is Overvalued By 1.53%.

Relative Value

Fair Zone

113.84-190.77

Current Price：193.69

1.53%

Overvalued

61.10

54.27

EV/EBITDA

Guidewire Software Inc. (GWRE) has a current EV/EBITDA of 54.27. The 5-year average EV/EBITDA is 202.63. The thresholds are as follows: Strongly Undervalued below -1636.24, Undervalued between -1636.24 and -716.81, Fairly Valued between 1122.07 and -716.81, Overvalued between 1122.07 and 2041.50, and Strongly Overvalued above 2041.50. The current Forward EV/EBITDA of 54.27 falls within the Historic Trend Line -Fairly Valued range.

58.90

EV/EBIT

Guidewire Software Inc. (GWRE) has a current EV/EBIT of 58.90. The 5-year average EV/EBIT is -10969.70. The thresholds are as follows: Strongly Undervalued below -101567.07, Undervalued between -101567.07 and -56268.38, Fairly Valued between 34328.98 and -56268.38, Overvalued between 34328.98 and 79627.66, and Strongly Overvalued above 79627.66. The current Forward EV/EBIT of 58.90 falls within the Historic Trend Line -Fairly Valued range.

11.90

Guidewire Software Inc. (GWRE) has a current PS of 11.90. The 5-year average PS is 10.23. The thresholds are as follows: Strongly Undervalued below 4.33, Undervalued between 4.33 and 7.28, Fairly Valued between 13.19 and 7.28, Overvalued between 13.19 and 16.14, and Strongly Overvalued above 16.14. The current Forward PS of 11.90 falls within the Historic Trend Line -Fairly Valued range.

46.07

P/OCF

Guidewire Software Inc. (GWRE) has a current P/OCF of 46.07. The 5-year average P/OCF is 108.96. The thresholds are as follows: Strongly Undervalued below -164.75, Undervalued between -164.75 and -27.89, Fairly Valued between 245.82 and -27.89, Overvalued between 245.82 and 382.67, and Strongly Overvalued above 382.67. The current Forward P/OCF of 46.07 falls within the Historic Trend Line -Fairly Valued range.

50.00

P/FCF

Guidewire Software Inc. (GWRE) has a current P/FCF of 50.00. The 5-year average P/FCF is 86.81. The thresholds are as follows: Strongly Undervalued below -308.07, Undervalued between -308.07 and -110.63, Fairly Valued between 284.26 and -110.63, Overvalued between 284.26 and 481.70, and Strongly Overvalued above 481.70. The current Forward P/FCF of 50.00 falls within the Historic Trend Line -Fairly Valued range.

Guidewire Software Inc (GWRE) has a current Price-to-Book (P/B) ratio of 11.37. Compared to its 3-year average P/B ratio of 9.14 , the current P/B ratio is approximately 24.36% higher. Relative to its 5-year average P/B ratio of 7.60, the current P/B ratio is about 49.64% higher. Guidewire Software Inc (GWRE) has a Forward Free Cash Flow (FCF) yield of approximately 1.64%. Compared to its 3-year average FCF yield of 0.83%, the current FCF yield is approximately 98.60% lower. Relative to its 5-year average FCF yield of 0.58% , the current FCF yield is about 183.20% lower.

10.77

P/B

Median3y

9.14

Median5y

7.60

1.64

FCF Yield

Median3y

0.83

Median5y

0.58

Competitors Valuation Multiple

The average P/S ratio for GWRE's competitors is 2.20, providing a benchmark for relative valuation. Guidewire Software Inc Corp (GWRE) exhibits a P/S ratio of , which is -100% 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 increased by 15.22% 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

-181.71%

-224.12 → 183.13

P/E Change

15.22%

168.58 → 194.24

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 113.84 to 190.77 according to relative valuation methord.

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

The average P/S ratio for GWRE's competitors is 2.20, 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.

What is the current P/B ratio for Guidewire Software Inc (GWRE) as of Dec 16 2025?

As of Dec 16 2025, Guidewire Software Inc (GWRE) has a P/B ratio of 11.37. This indicates that the market values GWRE at 11.37 times its book value.

What is the current FCF Yield for Guidewire Software Inc (GWRE) as of Dec 16 2025?

As of Dec 16 2025, Guidewire Software Inc (GWRE) has a FCF Yield of 1.64%. This means that for every dollar of Guidewire Software Inc’s market capitalization, the company generates 1.64 cents in free cash flow.

What is the current Forward P/E ratio for Guidewire Software Inc (GWRE) as of Dec 16 2025?

As of Dec 16 2025, Guidewire Software Inc (GWRE) has a Forward P/E ratio of 64.50. This means the market is willing to pay $64.50 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 Dec 16 2025?

As of Dec 16 2025, Guidewire Software Inc (GWRE) has a Forward P/S ratio of 11.90. This means the market is valuing GWRE at $11.90 for every dollar of expected revenue over the next 12 months.

GWRE Valuation