(GWRE) Guidewire Software - Overview
Stock: Policycenter, Claimcenter, Billingcenter, Insurancesuite, Digital, Analytics
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 65.0% |
| Relative Tail Risk | -18.6% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -1.15 |
| Alpha | -55.39 |
| Character TTM | |
|---|---|
| Beta | 0.869 |
| Beta Downside | 0.798 |
| Drawdowns 3y | |
|---|---|
| Max DD | 51.89% |
| CAGR/Max DD | 0.39 |
Description: GWRE Guidewire Software December 19, 2025
Guidewire Software, Inc. (NYSE:GWRE) delivers a comprehensive, cloud-first platform that supports property-and-casualty (P&C) insurers across the policy-to-claims lifecycle, including core applications such as PolicyCenter, ClaimCenter, and BillingCenter, as well as the newer InsuranceNow SaaS suite.
Beyond the core suite, Guidewire’s product portfolio expands into pricing (Rating Management), reinsurance (Reinsurance Management), customer data (Client Data Management), product design (Advanced Product Designer), and a range of digital-engagement and analytics tools-including Predict (machine-learning), HazardHub (property-risk data), Cyence (cyber-risk modeling), DataHub (operational data store), and InfoCenter (business-intelligence warehouse).
Key operating metrics show the company’s momentum: FY 2023 revenue reached approximately $1.86 billion, with subscription-based ARR growing ~20 % YoY and gross margins consistently above 80 %. The P&C sector is being reshaped by accelerated digital transformation, heightened climate-risk exposure, and tighter regulatory reporting, all of which drive demand for integrated, data-rich platforms like Guidewire’s.
For a deeper, data-driven valuation of GWRE, the ValueRay platform offers granular financial metrics and scenario analysis.
Piotroski VR‑10 (Strict, 0-10) 6.5
| Net Income: 92.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 3.65 > 1.0 |
| NWC/Revenue: 76.02% < 20% (prev 98.65%; Δ -22.63% < -1%) |
| CFO/TA 0.11 > 3% & CFO 295.8m > Net Income 92.0m |
| Net Debt (212.5m) to EBITDA (109.9m): 1.93 < 3 |
| Current Ratio: 3.48 > 1.5 & < 3 |
| Outstanding Shares: last quarter (86.5m) vs 12m ago 0.57% < -2% |
| Gross Margin: 63.13% > 18% (prev 0.61%; Δ 6253 % > 0.5%) |
| Asset Turnover: 48.59% > 50% (prev 39.90%; Δ 8.70% > 0%) |
| Interest Coverage Ratio: 5.92 > 6 (EBITDA TTM 109.9m / Interest Expense TTM 14.5m) |
Altman Z'' 1.47
| A: 0.37 (Total Current Assets 1.36b - Total Current Liabilities 389.9m) / Total Assets 2.64b |
| B: -0.20 (Retained Earnings -522.9m / Total Assets 2.64b) |
| C: 0.03 (EBIT TTM 85.6m / Avg Total Assets 2.62b) |
| D: -0.48 (Book Value of Equity -530.8m / Total Liabilities 1.11b) |
| Altman-Z'' Score: 1.47 = BB |
Beneish M -2.83
| DSRI: 0.92 (Receivables 257.7m/226.9m, Revenue 1.27b/1.04b) |
| GMI: 0.96 (GM 63.13% / 60.76%) |
| AQI: 1.35 (AQ_t 0.45 / AQ_t-1 0.33) |
| SGI: 1.23 (Revenue 1.27b / 1.04b) |
| TATA: -0.08 (NI 92.0m - CFO 295.8m) / TA 2.64b) |
| Beneish M-Score: -2.83 (Cap -4..+1) = A |
What is the price of GWRE shares?
Over the past week, the price has changed by -8.93%, over one month by -31.81%, over three months by -40.47% and over the past year by -41.11%.
Is GWRE a buy, sell or hold?
- StrongBuy: 6
- Buy: 6
- Hold: 2
- Sell: 1
- StrongSell: 1
What are the forecasts/targets for the GWRE price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 259.6 | 102.5% |
| Analysts Target Price | 259.6 | 102.5% |
| ValueRay Target Price | 127.5 | -0.5% |
GWRE Fundamental Data Overview February 04, 2026
P/E Forward = 47.619
P/S = 9.2838
P/B = 7.8043
P/EG = 1.2514
Revenue TTM = 1.27b USD
EBIT TTM = 85.6m USD
EBITDA TTM = 109.9m USD
Long Term Debt = 675.4m USD (from longTermDebt, last quarter)
Short Term Debt = 10.4m USD (from shortTermDebt, last fiscal year)
Debt = 704.5m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 212.5m USD (from netDebt column, last quarter)
Enterprise Value = 11.50b USD (11.81b + Debt 704.5m - CCE 1.01b)
Interest Coverage Ratio = 5.92 (Ebit TTM 85.6m / Interest Expense TTM 14.5m)
EV/FCF = 40.22x (Enterprise Value 11.50b / FCF TTM 286.0m)
FCF Yield = 2.49% (FCF TTM 286.0m / Enterprise Value 11.50b)
FCF Margin = 22.48% (FCF TTM 286.0m / Revenue TTM 1.27b)
Net Margin = 7.23% (Net Income TTM 92.0m / Revenue TTM 1.27b)
Gross Margin = 63.13% ((Revenue TTM 1.27b - Cost of Revenue TTM 469.0m) / Revenue TTM)
Gross Margin QoQ = 62.99% (prev 65.01%)
Tobins Q-Ratio = 4.36 (Enterprise Value 11.50b / Total Assets 2.64b)
Interest Expense / Debt = 0.47% (Interest Expense 3.31m / Debt 704.5m)
Taxrate = 21.0% (US default 21%)
NOPAT = 67.6m (EBIT 85.6m * (1 - 21.00%))
Current Ratio = 3.48 (Total Current Assets 1.36b / Total Current Liabilities 389.9m)
Debt / Equity = 0.46 (Debt 704.5m / totalStockholderEquity, last quarter 1.53b)
Debt / EBITDA = 1.93 (Net Debt 212.5m / EBITDA 109.9m)
Debt / FCF = 0.74 (Net Debt 212.5m / FCF TTM 286.0m)
Total Stockholder Equity = 1.41b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.51% (Net Income 92.0m / Total Assets 2.64b)
RoE = 6.54% (Net Income TTM 92.0m / Total Stockholder Equity 1.41b)
RoCE = 4.11% (EBIT 85.6m / Capital Employed (Equity 1.41b + L.T.Debt 675.4m))
RoIC = 3.18% (NOPAT 67.6m / Invested Capital 2.12b)
WACC = 8.63% (E(11.81b)/V(12.52b) * Re(9.12%) + D(704.5m)/V(12.52b) * Rd(0.47%) * (1-Tc(0.21)))
Discount Rate = 9.12% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 2.87%
[DCF Debug] Terminal Value 79.25% ; FCFF base≈246.2m ; Y1≈303.8m ; Y5≈517.3m
Fair Price DCF = 88.70 (EV 7.75b - Net Debt 212.5m = Equity 7.54b / Shares 85.0m; r=8.63% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: 79.47 | EPS CAGR: 37.78% | SUE: 0.30 | # QB: 0
Revenue Correlation: 85.87 | Revenue CAGR: 13.83% | SUE: 3.17 | # QB: 3
EPS next Quarter (2026-04-30): EPS=0.64 | Chg30d=+0.000 | Revisions Net=-10 | Analysts=15
EPS current Year (2026-07-31): EPS=2.95 | Chg30d=+0.000 | Revisions Net=-4 | Growth EPS=+11.5% | Growth Revenue=+17.6%
EPS next Year (2027-07-31): EPS=3.86 | Chg30d=-0.001 | Revisions Net=+0 | Growth EPS=+30.7% | Growth Revenue=+15.5%