GWRE

Guidewire Software, Inc.

Fundamental data last updated:August 26, 2026

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company profile

SECTOR

Technology

industry

Software - Application

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Guidewire Software, Inc. provides software products for property and casualty insurers worldwide. The company offers Guidewire InsuranceSuite comprising Guidewire PolicyCenter, BillingCenter, and ClaimCenter applications. It also provides Guidewire InsuranceNow, a cloud-based platform that offers policy, billing, and claims management functionality to insurers; and Guidewire InsuranceSuite for Self-Managed. In addition, the company offers Guidewire Rating Management to manage the pricing of insurance products; Guidewire Reinsurance Management to use rules-based logic to execute reinsurance strategy through underwriting and claims processes; Guidewire Client Data Management to capitalize on customer information; and Guidewire Product Content Management that offers software tools and standards-based line-of-business templates to introduce and modify products. Further, it provides Guidewire Underwriting Management, a cloud-based integrated business application; Guidewire AppReader, a submission intake management solution; Guidewire ClaimCenter Package for the London market supports the claims workflow used by London Market insurers and brokers; Guidewire Digital Engagement Applications, which enable insurers to provide digital experiences to customers, agents, vendors, and field personnel through their device of choice; and Guidewire for Salesforce to provide customer information regarding policies and claims. Additionally, the company offers Guidewire Predictive Analytics, a set of cloud-native applications; Guidewire Risk Insights that allows insurers to assess new and evolving risks; Guidewire Business Intelligence that allows insurers to measure business performance; Guidewire DataHub, an operational data store; and Guidewire InfoCenter, a business intelligence warehouse, as well as implementation and integration, and professional services. The company was founded in 2001 and is headquartered in San Mateo, California.

 


VALUATION

P/E

67.75

Market Cap ($M USD)

$12.86B

Forward P/E

28.03

PEG

0.20

PRICE TO SALES

9.58

PRICE TO BOOK

8.49

EV / EBITDA

66.64

5-Year Average P/E

Free Cash Flow Yield

2.41%

DCF Value

$-30.95

Graham Number

$29.91

Price to FCF

41.54

EV to FCF

42.50

Earnings Yield

1.48%

FCF Yield

2.41%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$2.23

Next Year EPS Growth Estimate

$5.40

Next Year Revenue Growth Estimate

$1.93B

Return on Equity (ROE)

12.92%

FREE CASH FLOW

Operating Margin

6.81%

Debt-to-Equity

0.49

Piotroski F-Score

8

Altman Z-Score

6.76

Return on Invested Capital (ROIC)

4.09%

Current Ratio

2.93

Quick Ratio

2.93

Net Debt to EBITDA

1.50

Interest Coverage

6.72

Gross Profit margin

63.76%

FCF PER SHARE

$3.65

REVENUE PER SHARE

$15.82

Gainseekers Quantitative Analysis

Summary

Guidewire Software, Inc. presents a perplexing valuation scenario. Despite a staggering Forward P/E of 25.66, the stock’s DCF value is deeply negative, suggesting significant overvaluation. The Graham Number further underscores this, indicating a disconnect between market price and intrinsic value. However, the Altman Z-score of 6.76 signals robust financial health, reducing bankruptcy risk. The earnings yield of 1.61% is underwhelming, hinting at limited immediate returns for investors.

AI Exposure / Tech Reliance

Operating within the Software - Application industry, Guidewire is well-positioned to leverage AI advancements. Its technology-driven solutions cater to evolving market demands, ensuring resilience amidst rapid digital transformation. This adaptability is crucial for maintaining competitive advantage in a tech-centric landscape.

The Bull Case

For the value-driven investor, Guidewire offers compelling institutional tailwinds. A Piotroski F-Score of 8 indicates strong financial health, while a Return on Equity of 12.92% showcases effective capital utilization. The company's Free Cash Flow Yield, though modest, combined with a solid operating margin of 6.81%, reflects efficient cash generation and pricing power. These metrics suggest a company capable of sustaining growth and rewarding patient investors.

The Bear Case

Yet, the stock is not without its pitfalls. With a Price/Sales ratio of 8.77 and Price/Book of 7.77, Guidewire is trading at lofty valuations, raising concerns about future returns. The EV to EBITDA ratio of 61.13 further highlights potential overvaluation. Additionally, the proximity to its 52-week high suggests technical overextension, posing a risk of correction. Investors must weigh these structural risks against the company's growth narrative.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$241.00

Institutional Ownership %

1-Year Beta

0.91

Insider Buying % (6 Mo)

Distance to 52-Week High

80.23%

Distance to 52-Week Low

23.59%

EARNINGS SURPRISE %

51.36%

50-DAY SMA

$139.83

200-DAY SMA

$184.87

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.