Clearwater Analytics Holdings, Inc.

NYSE:CWAN Stock Report

Market Cap: US$7.3b

Clearwater Analytics Holdings Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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.

Below Fair Value: CWAN ($32.4) is trading below our estimate of fair value ($48.91)

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 Ratio17.5x
SalesUS$424.36m
Market CapUS$7.30b

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 Average8.5x
OTEX Open Text
1.4x-0.4%US$7.7b
SPSC SPS Commerce
11.9x14.2%US$7.1b
VERX Vertex
13.3x14.2%US$8.4b
SMAR Smartsheet
7.5x14.1%US$7.8b
CWAN Clearwater Analytics Holdings
17.5x18.6%US$7.3b

Price-To-Sales vs Peers: CWAN is expensive based on its Price-To-Sales Ratio (17.5x) compared to the peer average (8.5x).

Price to Sales Ratio vs Industry

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

80 CompaniesPrice / SalesEstimated GrowthMarket Cap
VYX NCR Voyix
0.6x-23.2%US$2.12b
PGY Pagaya Technologies
0.8x15.8%US$704.88m
EGHT 8x8
0.6x1.1%US$397.21m
XPER Xperi
0.8x1.8%US$390.47m
CWAN 17.5xIndustry Avg. 5.5xNo. of Companies80PS048121620+
80 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: CWAN is expensive based on its Price-To-Sales Ratio (17.5x) compared to the US Software industry average (5.3x).

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 Ratio17.5x
Fair PS Ratio7.4x

Price-To-Sales vs Fair Ratio: CWAN is expensive based on its Price-To-Sales Ratio (17.5x) compared to the estimated Fair Price-To-Sales Ratio (7.4x).

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$32.40
US$32.36
-0.1%
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$17.00n/a9
Dec ’24US$19.76
US$22.44
+13.6%
12.3%US$26.00US$17.00n/a9
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
Dec ’23US$18.80
US$17.40
-7.4%
15.0%US$22.00US$13.00US$19.7610
Nov ’23US$15.76
US$17.00
+7.9%
17.0%US$22.00US$12.00US$17.9310

Analyst Forecast: Target price is lower than the current share price.

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