Guidewire Software, Inc.

Valuation Analysis

About the Company

Guidewire Software, Inc. en bref

Guidewire Software, Inc. (GWRE) is currently trading at 94,00 € with a market capitalization of 7,8 Md €. The trailing P/E ratio stands at 57.97x, with a forward P/E of 26.2x. The 52-week range spans from 92,77 € to 237,64 €; the current price is 60.4% below the yearly high. Year-over-year revenue growth stands at +26.9%. The net profit margin stands at 11.25%.

💰 Dividende

Guidewire Software, Inc. currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Avis des analystes

13 analystes évaluent Guidewire Software, Inc. (GWRE) au consensus : Acheter. L'objectif de cours moyen est de 180,46 €, soit un potentiel de +91.97% par rapport au cours actuel. La fourchette des objectifs de cours des analystes va de 119,43 € à 261,53 €.

Guidewire Software, Inc. : la thèse d'investissement en détail

Guidewire Software, Inc. (GWRE) operates in the Technology — specifically Software - Application — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

Le scénario haussier

Top-line momentum is unusually strong with revenue expanding 26.9% year-over-year, a pace that puts the company well above the market average and signals genuine demand traction rather than mere cyclical tailwind. With a gross margin near 64.01%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Wall Street consensus sits at Buy with an average price target implying roughly 91.97% upside from current levels — analyst sentiment is firmly constructive.

Le scénario baissier

Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valorisation en contexte

With a PEG ratio of 0.64, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 74.3x reflects rich expectations — historically, multiples at this level have proven hard to maintain for more than a few quarters.

À surveiller

• The forward P/E of 26.2x is meaningfully below the trailing 57.97x — analysts expect earnings to step up; the next earnings release is the test.
• The price sits in the lower quartile of the 52-week range — value hunters often start scaling in around this zone if fundamentals hold.
• The analyst consensus price target implies 91.97% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Thèse d'investissement : forces et faiblesses

Aperçu technique

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Profil de risque

The data points to relatively defensive market behavior, elevated short interest (6.63%).

Trading Data

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