Guidewire Software, Inc.

DB:0GS Stock Report

Market Cap: €16.0b

Guidewire Software Valuation

Is 0GS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 0GS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0GS (€190.55) is trading below our estimate of fair value (€195.08)

Significantly Below Fair Value: 0GS is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0GS?

Key metric: As 0GS is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 0GS. This is calculated by dividing 0GS's market cap by their current revenue.
What is 0GS's PS Ratio?
PS Ratio17.2x
SalesUS$980.50m
Market CapUS$16.86b

Price to Sales Ratio vs Peers

How does 0GS's PS Ratio compare to its peers?

The above table shows the PS ratio for 0GS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average14.5x
NEM Nemetschek
12.1x14.1%€11.2b
NB2 Northern Data
31.6x31.5%€2.5b
TMV TeamViewer
2.7x6.5%€1.7b
AOF ATOSS Software
11.7x12.7%€2.0b
0GS Guidewire Software
17.2x12.7%€16.9b

Price-To-Sales vs Peers: 0GS is expensive based on its Price-To-Sales Ratio (17.2x) compared to the peer average (14.6x).

Price to Sales Ratio vs Industry

How does 0GS's PS Ratio compare vs other companies in the DE Software Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
CSH CENIT
0.3x5.2%US$71.98m
CLIQ Cliq Digital
0.09x13.2%US$25.26m
LSX LS telcom
0.5x5.0%US$21.40m
8DQ GetSwift Technologies
0.07xn/aUS$2.53m
0GS 17.2xIndustry Avg. 2.2xNo. of Companies7PS02.44.87.29.612+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 0GS is expensive based on its Price-To-Sales Ratio (17.2x) compared to the German Software industry average (2.1x).

Price to Sales Ratio vs Fair Ratio

What is 0GS'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.

0GS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio17.2x
Fair PS Ratio7.3x

Price-To-Sales vs Fair Ratio: 0GS is expensive based on its Price-To-Sales Ratio (17.2x) compared to the estimated Fair Price-To-Sales Ratio (7.3x).

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 0GS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€190.55
€186.32
-2.2%
16.8%€220.10€119.10n/a13
Nov ’25€169.85
€173.57
+2.2%
14.8%€198.40€115.35n/a13
Oct ’25€162.15
€152.74
-5.8%
13.4%€178.94€101.10n/a14
Sep ’25€134.20
€131.95
-1.7%
17.2%€158.01€85.78n/a14
Aug ’25€137.50
€127.29
-7.4%
14.8%€156.16€87.27n/a14
Jul ’25€128.85
€127.88
-0.8%
13.7%€158.85€88.77n/a14
Jun ’25€104.35
€117.59
+12.7%
12.9%€131.44€74.58n/a14
May ’25€103.40
€115.40
+11.6%
12.5%€128.82€73.09n/a15
Apr ’25€108.00
€115.40
+6.9%
12.5%€128.82€73.09n/a15
Mar ’25€108.00
€106.27
-1.6%
11.5%€121.06€73.93n/a15
Feb ’25€104.00
€105.51
+1.4%
11.0%€121.24€74.04n/a15
Jan ’25€99.50
€101.12
+1.6%
13.5%€119.79€73.15n/a14
Dec ’24€93.00
€91.93
-1.1%
13.9%€114.84€62.89n/a14
Nov ’24€84.00
€89.89
+7.0%
10.1%€104.62€65.63€169.8514
Oct ’24€85.00
€87.86
+3.4%
10.2%€102.34€64.20€162.1514
Sep ’24€80.00
€79.66
-0.4%
8.1%€87.56€63.60€134.2014
Aug ’24€78.50
€77.54
-1.2%
10.5%€86.66€59.29€137.5014
Jul ’24€69.00
€77.54
+12.4%
10.5%€86.66€59.29€128.8514
Jun ’24€77.00
€77.76
+1.0%
12.2%€88.55€55.93€104.3514
May ’24€69.00
€78.83
+14.2%
11.9%€90.07€56.89€103.4014
Apr ’24€75.50
€78.83
+4.4%
11.9%€90.07€56.89€108.0014
Mar ’24€64.50
€72.80
+12.9%
16.1%€87.43€50.62€108.0014
Feb ’24€68.00
€72.80
+7.1%
16.1%€87.43€50.62€104.0014
Jan ’24€58.00
€75.03
+29.4%
17.5%€94.74€52.11€99.5013
Dec ’23€57.50
€78.38
+36.3%
16.3%€99.75€57.00€93.0013
Nov ’23€59.00
€82.70
+40.2%
17.2%€104.15€59.51€84.0012

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

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