Guidewire Software Inc (GWRE) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Guidewire Software Inc stock (GWRE) is currently trading at $149.44. Guidewire Software Inc PE ratio is 67.90. Guidewire Software Inc PS ratio (Price-to-Sales) is 9.55. Analyst consensus price target for GWRE is $234.14. WallStSmart rates GWRE as Hold.
- GWRE PE ratio analysis and historical PE chart
- GWRE PS ratio (Price-to-Sales) history and trend
- GWRE intrinsic value — DCF, Graham Number, EPV models
- GWRE stock price prediction 2025 2026 2027 2028 2029 2030
- GWRE fair value vs current price
- GWRE insider transactions and insider buying
- Is GWRE undervalued or overvalued?
- Guidewire Software Inc financial analysis — revenue, earnings, cash flow
- GWRE Piotroski F-Score and Altman Z-Score
- GWRE analyst price target and Smart Rating
Guidewire Software Inc
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GWRE Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Guidewire Software Inc (GWRE)
GWRE trades 26% above its Graham fair value of $103.90, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Guidewire Software Inc (GWRE) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, peg ratio, revenue growth. Concerns around price/sales and price/book. Fundamentals are solid but monitor weak areas for improvement.
Guidewire Software Inc (GWRE) Key Strengths (5)
Earnings per share surging 228.00% year-over-year
100.43% of shares held by major funds and institutions
Large-cap company with substantial market presence
Good growth relative to its price
Strong revenue growth at 24.00% annually
Supporting Valuation Data
Guidewire Software Inc (GWRE) Areas to Watch (5)
Very expensive at 9.6x annual revenue
Very expensive at 8.4x book value
Thin operating margins with cost pressures present
Moderate profitability with room for improvement
Decent profitability, keeps $14 per $100 revenue
Supporting Valuation Data
Guidewire Software Inc (GWRE) Detailed Analysis Report
Overall Assessment
This company scores 60/100 in our Smart Analysis, earning a C+ grade. Out of 10 metrics analyzed, 5 register as strengths (avg 9.0/10) while 5 fall into concern territory (avg 3.8/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on EPS Growth, Institutional Own., Market Cap. Valuation metrics including PEG Ratio (1.11) suggest the stock is attractively priced. Growth metrics are encouraging with Revenue Growth at 24.00%, EPS Growth at 228.00%.
The Bear Case
The primary concerns are Price/Sales, Price/Book, Operating Margin. Some valuation metrics including Price/Sales (9.55), Price/Book (8.45) suggest expensive pricing. Profitability pressure is visible in Return on Equity at 13.60%, Operating Margin at 10.70%, Profit Margin at 14.10%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Price/Sales improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 13.60% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 24.00% strong but requiring continuation.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. Strengths and concerns are roughly balanced. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (EPS Growth, Institutional Own.) and negatives (Price/Sales, Price/Book). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
GWRE Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
GWRE's Price-to-Sales ratio of 9.55x sits near its historical average of 10.54x (31th percentile), suggesting the market is pricing in steady-state growth. The current valuation is 46% below its historical high of 17.77x set in Jun 2025, and 223% above its historical low of 2.96x in Feb 2012. Over the past 12 months, the PS ratio has compressed from ~14.5x as trailing revenue scaled faster than the stock price.
Compare GWRE with Competitors
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Data-driven financial summary for Guidewire Software Inc (GWRE) · TECHNOLOGY › SOFTWARE - APPLICATION
The Big Picture
Guidewire Software Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 1.3B with 24% growth year-over-year. Profit margins of 14.1% are healthy, with room for further expansion as the business scales.
Key Findings
Generating 109M in free cash flow and 112M in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Margin expansion: can Guidewire Software Inc push profit margins above 15% as the business scales?
Growth sustainability: can Guidewire Software Inc maintain 24%+ revenue growth, or will competition slow it down?
Valuation compression risk at a P/E of 67.9x. Any growth miss could trigger a sharp correction.
Sector dynamics: monitor SOFTWARE - APPLICATION industry trends, competitive moves, and regulatory changes that could impact Guidewire Software Inc.
Bottom Line
Guidewire Software Inc offers an attractive blend of growth (24% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Guidewire Software Inc(GWRE)
NYSE
TECHNOLOGY
SOFTWARE - APPLICATION
USA
Guidewire Software, Inc. provides software products for property and casualty insurers around the world. The company is headquartered in San Mateo, California.