GWRE
Guidewire Software Inc
$136.12
▲ 1.2%Updated Today 12:11 PM ET
GWRE at a glance — five pillars scored 0–100 from real filed financials.
Overall: Neutral · 52/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▼ Down 40.8% over the last 12 months
Market Cap
$11.20B
P/E
70.04x
Forward P/E (est.)
50.03x
ROE
11.0%
Revenue Growth
24.9%
EPS Growth
364.6%
Profit Margin
11.3%
FCF Yield
-0.8%
Debt / Equity
0.46x
ROIC
2.0%
Interest Coverage
3.11x
Current Ratio
2.44x
Dividend Yield
—
Implied Growth (rev. DCF)
6.2%
Rating Score
52/100
Guidewire Software Inc (GWRE) is a large-cap company in the Technology industry, part of the Information Technology sector of the S&P 500, with a market value around $11.20B.
In its latest reported year it generated about $1.20B in revenue.
Our model rates GWRE Neutral (52/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what GWRE's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. GWRE trades near $136.12, around its 50-day average ($132.00) and 200-day average ($172.46). Price tangled in its moving averages means there is no clear trend — the stock is ranging.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 62 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. GWRE's is $6.72 (~4.9% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month GWRE found buyers near $102.30 (support) and sellers near $146.80 (resistance); its 52-week range is $102.30–$272.60. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.1× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
12.8%
Revenue moved from $509.53M in 2017 to $1.20B in 2025, a 11.3% compound annual growth rate. The most recent year grew a strong 24.9% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
62.5%
Operating Margin
3.4%
Net Margin
11.3%
ROE
11.0%
Guidewire Software Inc keeps about 11.3% of each sales dollar as net profit, with a 62.5% gross margin and 3.4% operating margin. Return on equity is 11.0% and return on invested capital about 2.0%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
$398.90M
Net Debt
$104.27M
Net Debt / EBITDA
2.54x
Debt / Equity
0.46x
Leverage: debt-to-equity is 0.5x, and operating profit covers interest about 3.1x, with a current ratio of 2.4x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $398.90M of total debt against $294.63M of cash.
Operating CF
$300.87M
Free Cash Flow
$295.13M
FCF Margin
24.5%
In the latest year Guidewire Software Inc produced about $300.87M of operating cash flow and $295.13M of free cash flow after capital spending. That is a free-cash-flow yield of about -0.8% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
P/E
70.04x
P/S
9.31x
P/B
13.07x
EV / EBITDA
—
GWRE trades at 70.0x trailing earnings (about 50.0x on estimated forward earnings), 9.3x sales, and 13.1x book value. Reverse-engineering today's price implies the market expects roughly 6.2% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$146.79
Current price
$136.12
Starting FCF (latest 10-K)
$295.13M
Growth, years 1–5
20.0%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where GWRE sits versus its Information Technology sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 57 Information Technology companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How GWRE stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
In the Information Technology sector (137 S&P 500 companies), GWRE ranks #37 of 137 by our overall rating. It trades at a premium versus the sector on earnings (70x P/E vs. 44.5x median) with a lower return on equity (11.0% vs. 21.1%) and faster revenue growth (24.9% vs. 18.1%).
P/E vs sector
70x
median 44.5x
ROE vs sector
11.0%
median 21.1%
Growth vs sector
24.9%
median 18.1%
Sector rank
#37
of 137 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 137 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $136.12 today · expected CAGR 8% – 20%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $1.50B | $1.88B | $2.35B | $2.94B | $3.67B |
| Net income | $165.34M | $206.67M | $258.34M | $322.93M | $403.66M |
| EPS | $1.99 | $2.48 | $3.10 | $3.88 | $4.85 |
| Share price (low) | $83.41 | $104.26 | $130.32 | $162.91 | $203.63 |
| Share price (high) | $139.01 | $173.77 | $217.21 | $271.51 | $339.39 |
| CAGR (low–high) | -39% / 2% | -12% / 13% | -1% / 17% | 5% / 19% | 8% / 20% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for GWRE:
- Revenue is growing 24.9% a year, a sign of real demand.
- A conservative balance sheet (debt/equity 0.5x) lowers risk.
The case against GWRE:
- A rich 70.0x earnings multiple prices in a lot of growth.
- Limited free cash flow at today's price.
Valuation risk — at 70.0x earnings, disappointing results could compress the multiple.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the picture is mixed: Guidewire Software Inc is a large-cap information technology business still growing nicely, with modest profitability, and a sound balance sheet. It trades at 70.0x earnings, which our model scores Neutral (52/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
GWRE — frequently asked questions
Is GWRE a good stock to buy?
We don't give buy or sell advice. Our model rates Guidewire Software Inc Neutral (52/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is GWRE's rating on The Stocks School?
Guidewire Software Inc currently scores 52/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does GWRE's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Guidewire Software Inc's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for GWRE calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this GWRE analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell GWRE. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.