Clearwater Analytics Holdings, Inc.

NYSE:CWAN Stock Report

Market Cap: US$6.5b

Clearwater Analytics Holdings Valuation

Is CWAN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CWAN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$63.62
Fair Value
58.4% undervalued intrinsic discount
9
Number of Analysts

Below Fair Value: CWAN ($26.45) is trading below our estimate of fair value ($63.62)

Significantly Below Fair Value: CWAN is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CWAN?

Key metric: As CWAN is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for CWAN. This is calculated by dividing CWAN's market cap by their current revenue.
What is CWAN's PS Ratio?
PS Ratio14.2x
SalesUS$424.36m
Market CapUS$6.53b

Price to Sales Ratio vs Peers

How does CWAN's PS Ratio compare to its peers?

The above table shows the PS ratio for CWAN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average8x
SPSC SPS Commerce
11.2x15.1%US$6.8b
WK Workiva
8.6x14.8%US$6.1b
OTEX Open Text
1.3x-0.3%US$7.2b
HCP HashiCorp
10.7x14.4%US$7.0b
CWAN Clearwater Analytics Holdings
14.2x17.2%US$6.5b

Price-To-Sales vs Peers: CWAN is expensive based on its Price-To-Sales Ratio (14.2x) compared to the peer average (8x).

Price to Sales Ratio vs Industry

How does CWAN's PS Ratio compare vs other companies in the US Software Industry?

73 CompaniesPrice / SalesEstimated GrowthMarket Cap
VYX NCR Voyix
0.5x-22.4%US$1.91b
PGY Pagaya Technologies
0.6x15.3%US$629.02m
PRCH Porch Group
1x3.7%US$451.49m
XPER Xperi
0.8x1.8%US$399.89m
CWAN 14.2xIndustry Avg. 5.4xNo. of Companies73PS048121620+
73 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: CWAN is expensive based on its Price-To-Sales Ratio (14.2x) compared to the US Software industry average (5.4x).

Price to Sales Ratio vs Fair Ratio

What is CWAN's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CWAN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio14.2x
Fair PS Ratio6.9x

Price-To-Sales vs Fair Ratio: CWAN is expensive based on its Price-To-Sales Ratio (14.2x) compared to the estimated Fair Price-To-Sales Ratio (6.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CWAN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$26.45
US$33.22
+25.6%
10.5%US$40.00US$28.00n/a9
Jan ’26US$27.52
US$33.00
+19.9%
14.0%US$40.00US$22.00n/a11
Dec ’25US$31.04
US$32.36
+4.3%
12.5%US$36.00US$22.00n/a11
Nov ’25US$26.29
US$26.73
+1.7%
14.6%US$32.00US$20.00n/a11
Oct ’25US$24.98
US$24.55
-1.7%
11.7%US$28.00US$20.00n/a11
Sep ’25US$24.78
US$24.27
-2.0%
11.0%US$28.00US$20.00n/a11
Aug ’25US$23.52
US$23.70
+0.8%
9.4%US$27.00US$20.00n/a10
Jul ’25US$18.34
US$22.00
+20.0%
11.7%US$26.00US$19.00n/a9
Jun ’25US$18.98
US$22.00
+15.9%
11.7%US$26.00US$19.00n/a9
May ’25US$15.82
US$22.22
+40.5%
13.0%US$26.00US$17.00n/a9
Apr ’25US$17.25
US$22.22
+28.8%
13.0%US$26.00US$17.00n/a9
Mar ’25US$17.06
US$22.22
+30.3%
13.0%US$26.00US$17.00n/a9
Feb ’25US$19.19
US$22.44
+17.0%
12.3%US$26.00US$17.00n/a9
Jan ’25US$20.03
US$22.44
+12.1%
12.3%US$26.00US$17.00US$27.529
Dec ’24US$19.76
US$22.44
+13.6%
12.3%US$26.00US$17.00US$31.049
Nov ’24US$17.93
US$21.63
+20.6%
12.7%US$25.00US$16.00US$26.298
Oct ’24US$19.34
US$21.63
+11.8%
12.7%US$25.00US$16.00US$24.988
Sep ’24US$18.26
US$19.33
+5.9%
14.0%US$24.00US$16.00US$24.789
Aug ’24US$17.23
US$18.67
+8.3%
16.0%US$23.00US$14.00US$23.529
Jul ’24US$15.87
US$18.67
+17.6%
16.0%US$23.00US$14.00US$18.349
Jun ’24US$15.87
US$18.67
+17.6%
16.0%US$23.00US$14.00US$18.989
May ’24US$15.46
US$20.44
+32.2%
14.8%US$25.00US$14.00US$15.829
Apr ’24US$15.96
US$20.44
+28.1%
14.8%US$25.00US$14.00US$17.259
Mar ’24US$16.52
US$20.44
+23.8%
14.8%US$25.00US$14.00US$17.069
Feb ’24US$19.70
US$18.78
-4.7%
19.1%US$23.00US$13.00US$19.199
Jan ’24US$18.75
US$17.40
-7.2%
15.0%US$22.00US$13.00US$20.0310
Analyst Price Target
Consensus Narrative from 9 Analysts
US$33.22
Fair Value
20.4% undervalued intrinsic discount
9
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/15 01:31
End of Day Share Price 2025/01/14 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Clearwater Analytics Holdings, Inc. is covered by 15 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Andrew SchmidtCitigroup Inc
Kevin McVeighCredit Suisse
Peter HeckmannD.A. Davidson & Co.