Guidewire Software, Inc.

LSE:0J1G Stock Report

Market Cap: US$15.2b

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 ($183.82) is trading above our estimate of fair value ($116.61)

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?

Other financial metrics that can be useful for relative valuation.

0J1G key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue14.9x
Enterprise Value/EBITDA-348.4x
PEG Ration/a

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 Average4.8x
SGE Sage Group
4.5x7.7%UK£10.1b
GBG GB Group
2.7x6.7%UK£744.2m
BYIT Bytes Technology Group
5.9x10.5%UK£1.2b
ALFA Alfa Financial Software Holdings
5.9x8.4%UK£602.0m
0J1G Guidewire Software
15.6x12.6%US$15.2b

Price-To-Sales vs Peers: 0J1G is expensive based on its Price-To-Sales Ratio (15.6x) compared to the peer average (4.8x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.0%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.0%
n/an/an/a
No more companies

Price-To-Sales vs Industry: 0J1G is expensive based on its Price-To-Sales Ratio (15.6x) compared to the UK Software industry average (2x).


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 Ratio15.6x
Fair PS Ratio8.3x

Price-To-Sales vs Fair Ratio: 0J1G is expensive based on its Price-To-Sales Ratio (15.6x) compared to the estimated Fair Price-To-Sales Ratio (8.3x).


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 0J1G forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$184.30
US$179.77
-2.5%
15.9%US$210.00US$113.00n/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$69.00n/a14
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
Oct ’23US$61.94
US$85.45
+38.0%
15.3%US$105.00US$65.00US$91.0311

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


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