Guidewire Software, Inc.

LSE:0J1G Stock Report

Market Cap: US$14.1b

Guidewire Software Valuation

Is 0J1G 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 0J1G when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0J1G ($170.4) is trading below our estimate of fair value ($182.93)

Significantly Below Fair Value: 0J1G 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 0J1G?

Key metric: As 0J1G is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 0J1G. This is calculated by dividing 0J1G's market cap by their current revenue.
What is 0J1G's PS Ratio?
PS Ratio13.7x
SalesUS$1.04b
Market CapUS$14.08b

Price to Sales Ratio vs Peers

How does 0J1G's PS Ratio compare to its peers?

The above table shows the PS ratio for 0J1G vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average5x
SGE Sage Group
5.4x8.0%UK£12.7b
BYIT Bytes Technology Group
5x10.9%UK£1.0b
GBG GB Group
3.1x6.9%UK£874.3m
ALFA Alfa Financial Software Holdings
6.3x9.6%UK£640.4m
0J1G Guidewire Software
13.7x12.8%US$14.1b

Price-To-Sales vs Peers: 0J1G is expensive based on its Price-To-Sales Ratio (13.7x) compared to the peer average (5x).

Price to Sales Ratio vs Industry

How does 0J1G's PS Ratio compare vs other companies in the GB Software Industry?

10 CompaniesPrice / SalesEstimated GrowthMarket Cap
RM. RM
0.5xn/aUS$108.69m
SWG Shearwater Group
0.4xn/aUS$11.06m
MBO MobilityOne
0.009xn/aUS$2.50m
CCS Crossword Cybersecurity
0.5xn/aUS$2.46m
0J1G 13.7xIndustry Avg. 2.3xNo. of Companies12PS0246810+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 0J1G is expensive based on its Price-To-Sales Ratio (13.7x) compared to the UK Software industry average (2.3x).

Price to Sales Ratio vs Fair Ratio

What is 0J1G'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.

0J1G PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio13.7x
Fair PS Ratio8.8x

Price-To-Sales vs Fair Ratio: 0J1G is expensive based on its Price-To-Sales Ratio (13.7x) compared to the estimated Fair Price-To-Sales Ratio (8.8x).

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 0J1G forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$170.40
US$208.70
+22.5%
15.7%US$231.00US$135.00n/a13
Dec ’25US$203.33
US$195.55
-3.8%
16.8%US$231.00US$125.00n/a13
Nov ’25US$185.94
US$188.09
+1.2%
14.8%US$215.00US$125.00n/a13
Oct ’25US$179.26
US$170.71
-4.8%
13.4%US$200.00US$113.00n/a14
Sep ’25US$147.25
US$146.14
-0.8%
17.2%US$175.00US$95.00n/a14
Aug ’25US$147.78
US$138.57
-6.2%
14.8%US$170.00US$95.00n/a14
Jul ’25US$137.69
US$136.86
-0.6%
13.7%US$170.00US$95.00n/a14
Jun ’25US$111.93
US$126.14
+12.7%
12.9%US$141.00US$80.00n/a14
May ’25US$110.09
US$126.31
+14.7%
12.5%US$141.00US$80.00n/a15
Apr ’25US$116.12
US$126.31
+8.8%
12.5%US$141.00US$80.00n/a15
Mar ’25US$118.73
US$115.00
-3.1%
11.5%US$131.00US$80.00n/a15
Feb ’25US$113.18
US$114.00
+0.7%
11.0%US$131.00US$80.00n/a15
Jan ’25US$109.13
US$110.59
+1.3%
13.5%US$131.00US$80.00US$169.1914
Dec ’24US$101.35
US$100.87
-0.5%
13.9%US$126.00US$69.00US$203.3314
Nov ’24US$88.56
US$94.51
+6.7%
10.1%US$110.00US$69.00US$185.9414
Oct ’24US$91.03
US$94.43
+3.7%
10.2%US$110.00US$69.00US$179.2614
Sep ’24US$86.68
US$86.43
-0.3%
8.1%US$95.00US$69.00US$147.2514
Aug ’24US$85.38
US$85.00
-0.4%
10.5%US$95.00US$65.00US$147.7814
Jul ’24US$75.71
US$85.00
+12.3%
10.5%US$95.00US$65.00US$137.6914
Jun ’24n/a
US$83.43
0%
12.2%US$95.00US$60.00US$111.9314
May ’24US$75.80
US$83.14
+9.7%
11.9%US$95.00US$60.00US$110.0914
Apr ’24US$79.79
US$83.14
+4.2%
11.9%US$95.00US$60.00US$116.1214
Mar ’24US$70.81
US$79.11
+11.7%
16.1%US$95.00US$55.00US$118.7314
Feb ’24US$71.79
US$79.11
+10.2%
16.1%US$95.00US$55.00US$113.1814
Jan ’24n/a
US$79.19
0%
17.5%US$100.00US$55.00US$109.1313

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/02 01:03
End of Day Share Price 2025/01/02 00:00
Earnings2024/10/31
Annual Earnings2024/07/31

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

Guidewire Software, Inc. is covered by 26 analysts. 15 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Joseph VruwinkBaird
Ishan MajumdarBaptista Research
Michael FunkBofA Global Research