Guidewire Software, Inc.

NYSE:GWRE Stock Report

Market Cap: US$14.7b

Guidewire Software Valuation

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

Below Fair Value: GWRE ($176.03) is trading below our estimate of fair value ($176.96)

Significantly Below Fair Value: GWRE 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 GWRE?

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

The above table shows the Price to Sales ratio for GWRE. This is calculated by dividing GWRE's market cap by their current revenue.
What is GWRE's PS Ratio?
PS Ratio14.2x
SalesUS$1.04b
Market CapUS$14.70b

Price to Sales Ratio vs Peers

How does GWRE's PS Ratio compare to its peers?

The above table shows the PS ratio for GWRE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average10.7x
BSY Bentley Systems
11.5x10.9%US$15.2b
NTNX Nutanix
7.8x13.0%US$17.4b
DOCU DocuSign
6.5x6.6%US$19.1b
MANH Manhattan Associates
16.7x9.7%US$17.1b
GWRE Guidewire Software
14.2x12.8%US$14.7b

Price-To-Sales vs Peers: GWRE is expensive based on its Price-To-Sales Ratio (14.2x) compared to the peer average (10.7x).

Price to Sales Ratio vs Industry

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

79 CompaniesPrice / SalesEstimated GrowthMarket Cap
VYX NCR Voyix
0.6x-22.3%US$2.03b
PGY Pagaya Technologies
0.7x15.5%US$659.22m
XPER Xperi
0.9x1.8%US$456.82m
EGHT 8x8
0.5x1.5%US$355.40m
GWRE 14.2xIndustry Avg. 5.5xNo. of Companies79PS048121620+
79 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: GWRE is expensive based on its Price-To-Sales Ratio (14.2x) compared to the US Software industry average (5.5x).

Price to Sales Ratio vs Fair Ratio

What is GWRE'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.

GWRE PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio14.2x
Fair PS Ratio6.1x

Price-To-Sales vs Fair Ratio: GWRE is expensive based on its Price-To-Sales Ratio (14.2x) compared to the estimated Fair Price-To-Sales Ratio (6.1x).

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 GWRE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$176.03
US$208.70
+18.6%
15.7%US$231.00US$135.00n/a13
Dec ’25US$202.89
US$195.55
-3.6%
16.8%US$231.00US$125.00n/a13
Nov ’25US$186.04
US$188.09
+1.1%
14.8%US$215.00US$125.00n/a13
Oct ’25US$180.99
US$170.71
-5.7%
13.4%US$200.00US$113.00n/a14
Sep ’25US$148.77
US$146.14
-1.8%
17.2%US$175.00US$95.00n/a14
Aug ’25US$148.96
US$138.57
-7.0%
14.8%US$170.00US$95.00n/a14
Jul ’25US$138.99
US$136.86
-1.5%
13.7%US$170.00US$95.00n/a14
Jun ’25US$113.92
US$126.14
+10.7%
12.9%US$141.00US$80.00n/a14
May ’25US$110.80
US$126.31
+14.0%
12.5%US$141.00US$80.00n/a15
Apr ’25US$116.04
US$126.31
+8.9%
12.5%US$141.00US$80.00n/a15
Mar ’25US$116.73
US$115.00
-1.5%
11.5%US$131.00US$80.00n/a15
Feb ’25US$113.58
US$114.00
+0.4%
11.0%US$131.00US$80.00n/a15
Jan ’25US$109.04
US$110.59
+1.4%
13.5%US$131.00US$80.00n/a14
Dec ’24US$101.59
US$100.87
-0.7%
13.9%US$126.00US$69.00US$202.8914
Nov ’24US$89.31
US$94.51
+5.8%
10.1%US$110.00US$69.00US$186.0414
Oct ’24US$90.00
US$94.43
+4.9%
10.2%US$110.00US$69.00US$180.9914
Sep ’24US$86.53
US$86.43
-0.1%
8.1%US$95.00US$69.00US$148.7714
Aug ’24US$86.48
US$85.00
-1.7%
10.5%US$95.00US$65.00US$148.9614
Jul ’24US$76.08
US$85.00
+11.7%
10.5%US$95.00US$65.00US$138.9914
Jun ’24US$82.84
US$83.43
+0.7%
12.2%US$95.00US$60.00US$113.9214
May ’24US$75.86
US$83.14
+9.6%
11.9%US$95.00US$60.00US$110.8014
Apr ’24US$82.05
US$83.14
+1.3%
11.9%US$95.00US$60.00US$116.0414
Mar ’24US$69.53
US$79.11
+13.8%
16.1%US$95.00US$55.00US$116.7314
Feb ’24US$75.47
US$79.11
+4.8%
16.1%US$95.00US$55.00US$113.5814
Jan ’24US$62.56
US$79.19
+26.6%
17.5%US$100.00US$55.00US$109.0413
Dec ’23US$60.90
US$82.50
+35.5%
16.3%US$105.00US$60.00US$101.5913

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 11:02
End of Day Share Price 2024/12/20 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