Guidewire Software, Inc.

NYSE:GWRE Stock Report

Market Cap: US$13.5b

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 Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow 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.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: GWRE ($156.85) is trading below our estimate of future cash flow value ($182.53)

Significantly Below Future Cash Flow Value: GWRE is trading below future cash flow 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 profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for GWRE. This is calculated by dividing GWRE's market cap by their current earnings.
What is GWRE's PE Ratio?
PE Ratio145x
EarningsUS$91.97m
Market CapUS$13.51b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for GWRE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average42.6x
NTNX Nutanix
52.7x32.54%US$11.2b
BSY Bentley Systems
45.8x15.74%US$12.0b
DT Dynatrace
24.5x4.76%US$11.9b
MANH Manhattan Associates
47.5x13.17%US$10.0b
GWRE Guidewire Software
145x24.42%US$13.5b

Price-To-Earnings vs Peers: GWRE is expensive based on its Price-To-Earnings Ratio (145x) compared to the peer average (42.6x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

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

13 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MARA MARA Holdings
4.2x-97.65%US$3.99b
BTBT Bit Digital
5x-118.99%US$721.51m
XNET Xunlei
0.4xn/aUS$469.68m
EXOD Exodus Movement
4.2x-32.20%US$460.64m
GWRE 145.0xIndustry Avg. 30.5xNo. of Companies13PE020406080100+
13 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GWRE is expensive based on its Price-To-Earnings Ratio (145x) compared to the US Software industry average (30.1x).

Price to Earnings Ratio vs Fair Ratio

What is GWRE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GWRE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio145x
Fair PE Ratio37.3x

Price-To-Earnings vs Fair Ratio: GWRE is expensive based on its Price-To-Earnings Ratio (145x) compared to the estimated Fair Price-To-Earnings Ratio (37.3x).

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 GWRE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$156.85
US$261.43
+66.67%
15.05%US$300.00US$160.00n/a14
Jan ’27US$201.01
US$268.14
+33.40%
15.23%US$305.00US$160.00n/a14
Dec ’26US$212.31
US$266.46
+25.51%
16.51%US$305.00US$160.00n/a13
Nov ’26US$233.64
US$268.38
+14.87%
16.18%US$305.00US$160.00n/a13
Oct ’26US$230.23
US$268.38
+16.57%
16.18%US$305.00US$160.00n/a13
Sep ’26US$217.02
US$249.79
+15.10%
16.53%US$290.00US$155.00n/a14
Aug ’26US$222.88
US$249.79
+12.07%
16.53%US$290.00US$155.00n/a14
Jul ’26US$231.29
US$243.54
+5.30%
18.65%US$290.00US$155.00n/a15
Jun ’26US$215.02
US$210.72
-2.00%
16.96%US$250.00US$135.00n/a15
May ’26US$204.61
US$210.72
+2.99%
16.96%US$250.00US$135.00n/a15
Apr ’26US$190.56
US$210.92
+10.69%
17.00%US$250.00US$135.00n/a15
Mar ’26US$201.32
US$212.65
+5.63%
15.24%US$240.00US$135.00n/a14
Feb ’26US$211.27
US$210.51
-0.36%
14.96%US$231.00US$135.00n/a14
Jan ’26US$168.58
US$208.70
+23.80%
15.70%US$231.00US$135.00US$201.0113
Dec ’25US$202.89
US$195.55
-3.62%
16.81%US$231.00US$125.00US$212.3113
Nov ’25US$186.04
US$188.09
+1.10%
14.83%US$215.00US$125.00US$233.6413
Oct ’25US$180.99
US$170.71
-5.68%
13.44%US$200.00US$113.00US$230.2314
Sep ’25US$148.77
US$146.14
-1.77%
17.19%US$175.00US$95.00US$217.0214
Aug ’25US$148.96
US$138.57
-6.97%
14.82%US$170.00US$95.00US$222.8814
Jul ’25US$138.99
US$136.86
-1.53%
13.71%US$170.00US$95.00US$231.2914
Jun ’25US$113.92
US$126.14
+10.73%
12.94%US$141.00US$80.00US$215.0214
May ’25US$110.80
US$126.31
+14.00%
12.50%US$141.00US$80.00US$204.6115
Apr ’25US$116.04
US$126.31
+8.85%
12.50%US$141.00US$80.00US$190.5615
Mar ’25US$116.73
US$115.00
-1.48%
11.46%US$131.00US$80.00US$201.3215
Feb ’25US$113.58
US$114.00
+0.37%
11.01%US$131.00US$80.00US$211.2715
Jan ’25US$109.04
US$110.59
+1.42%
13.46%US$131.00US$80.00US$168.5814
US$261.43
Fair Value
40.0% undervalued intrinsic discount
14
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/01/22 06:49
End of Day Share Price 2026/01/22 00:00
Earnings2025/10/31
Annual Earnings2025/07/31

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.

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 Github.

Analyst Sources

Guidewire Software, Inc. is covered by 24 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
Michael FunkBofA Global Research
Madeline BrooksBofA Global Research