NYSE
GWRE
Last Price
US $140.71
KEY FIGURES
MKT CAP
$11.7B
EPS
TTM
$1.89
PEG
TTM
0.20x
P/E
TTM
74.50x
P/S
TTM
8.38x
YIELD
0.00%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
10.99%
Return on equity
ROIC: 5.77%
Valuation History
72.0X
Price to Earnings
EV/EBITDA: 56.4X
Cash flow
Profit margin
10.13%
(FY vs FY)
EBITDA Y/Y
18.96%
(FY vs FY)
Cash flow Y/Y
27.55%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $140.71
-56.34%
Default assumptions
EBITDA Multiple
Fair Value
Market $140.71
-95.08%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Guidewire Software, Inc. cash flow to debt ratio of 42.04% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial stability - Healthy cash flow growth.
Guidewire Software, Inc.'s free cash flow has increased 66.53% from $177.22M last year to $295.13M, signaling increasing performance
Financial stability - Healthy debt to equity ratio.
Guidewire Software, Inc.'s debt to equity ratio is 0.53, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial risk - Healthy debt to equity ratio development.
Guidewire Software, Inc.'s debt has increased relative to shareholder equity from 0.33 last year to 0.53 today, signaling weakened financials
Financial stability - Net debt/EBITDA.
Guidewire Software, Inc. has a net debt to EBITDA ratio of 0.19x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Guidewire Software, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.
Financial stability - Profit margin growth.
Guidewire Software, Inc.'s profit margin has increased (-1.91K%) in the last year from -0.62% to 11.25%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
Guidewire Software, Inc.'s short-term assets of $1.51G exceed its short-term liabilities of $544.80M
Increasing performance - ROA.
Guidewire Software, Inc.'s return on assets of 6.30% is higher than the 5.00% threshold, indicating efficient asset utilization
Decreasing performance - Absolute return on equity.
Guidewire Software, Inc.'s return on equity of 10.99%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
Guidewire Software, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Decreasing performance - Earnings stability.
Guidewire Software, Inc. had positive net income in only 1.00 out of 5 years, indicating unstable earnings
Increasing performance - Free cash flow.
Guidewire Software, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Guidewire Software, Inc. has a free cash flow yield of 2.52%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Guidewire Software, Inc.'s yearly earnings has increased -1.24K% since last year from $-6.10M to $69.80M, signaling increasing performance
Increasing performance - Healthy revenue growth.
Guidewire Software, Inc.'s yearly revenue has increased 22.64% since last year from $980.50M to $1.20G, signaling increasing performance
Increasing performance - ROIC.
ROIC 5.77% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Increasing performance - 3-year revenue CAGR.
Guidewire Software, Inc.'s 3-year revenue CAGR of 13.95% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Guidewire Software, Inc. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Decreasing performance - ROE consistency.
Guidewire Software, Inc. had positive ROE in only 1.00 out of 5 years, indicating inconsistent returns on equity
Overvalued - DCF valuation.
Guidewire Software, Inc. is overvalued relative to its fair value price of 61.43 based on Discounted Cash Flow model
Overvalued - Earnings yield.
Guidewire Software, Inc. has an earnings yield of 1.34%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
Guidewire Software, Inc. is overvalued relative to its fair value price of 6.92 based on EBITDA multiple model
Overvalued - EV/EBITDA.
Guidewire Software, Inc. has an EV/EBITDA ratio of 135.84x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings
Undervalued - PEG ratio value.
Guidewire Software, Inc. has a PEG-ratio under 1 which is considered undervalued
Overvalued - P/B ratio.
Guidewire Software, Inc. has a price-to-book ratio of 9.04x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value
Overvalued - P/S ratio.
Guidewire Software, Inc. has a price-to-sales ratio of 8.38x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue