Guidewire Software, Inc.

LSE:0J1G Stock Report

Market Cap: US$16.9b

Guidewire Software Valuation

Is 0J1G undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • 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 ($201.53) is trading above our estimate of fair value ($195.29)

Significantly Below Fair Value: 0J1G is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0J1G?

Key metric: As 0J1G is unprofitable 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 Ratio17.2x
SalesUS$980.50m
Market CapUS$16.86b

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 Average5.2x
SGE Sage Group
5.6x8.0%UK£13.0b
BYIT Bytes Technology Group
5.3x11.0%UK£1.1b
GBG GB Group
3.3x6.9%UK£942.9m
ALFA Alfa Financial Software Holdings
6.6x9.6%UK£667.0m
0J1G Guidewire Software
17.2x12.7%US$16.9b

Price-To-Sales vs Peers: 0J1G is expensive based on its Price-To-Sales Ratio (17.2x) compared to the peer average (5.2x).

Price to Sales Ratio vs Industry

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

11 CompaniesPrice / SalesEstimated GrowthMarket Cap
RM. RM
0.4xn/aUS$84.51m
SWG Shearwater Group
0.4xn/aUS$10.58m
MBO MobilityOne
0.01xn/aUS$3.03m
CCS Crossword Cybersecurity
0.5xn/aUS$2.46m
0J1G 17.2xIndustry Avg. 2.5xNo. of Companies12PS0246810+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 0J1G is expensive based on its Price-To-Sales Ratio (17.2x) compared to the UK Software industry average (2.5x).

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 Ratio17.2x
Fair PS Ratio9x

Price-To-Sales vs Fair Ratio: 0J1G is expensive based on its Price-To-Sales Ratio (17.2x) compared to the estimated Fair Price-To-Sales Ratio (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 0J1G forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$201.53
US$195.55
-3.0%
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$80.00n/a14
Dec ’24US$101.35
US$100.87
-0.5%
13.9%US$126.00US$69.00n/a14
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
Dec ’23US$60.70
US$82.50
+35.9%
16.3%US$105.00US$60.00US$101.3513
Nov ’23US$58.86
US$83.38
+41.7%
17.2%US$105.00US$60.00US$88.5612

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

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