# Guidewire Software Inc. (GWRE) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Technology / Software. Price $162.42, market value $13.5 billion.

## Valuation
- **P/E (trailing): 86.9×** (5-yr avg 279.3×, 3-yr avg 279.3×). Guidewire Software Inc. trades at 86.9× trailing earnings, well below its own five-year average of 279.3×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 30.4×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.02**. A PEG of 0.02 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 9.5×**. Each dollar of revenue is priced at 9.5×.
- **Price / book: 11.3×**. The shares trade at 11.3× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 91.8×**. Enterprise value is 91.8× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 2.5%** (5-yr avg 0.8%). Free cash flow equals 2.5% of the market value, above its five-year average of 0.8%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 1.2%**. The inverse of the P/E: 1.2% of the price is earned each year.

## Profitability
- **Gross margin: 64.0%**. Guidewire Software Inc. keeps 64.0% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 8.2%**. 8.2% of revenue is left after running the business.
- **Net margin: 5.8%**. 5.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 4.8%**. 4.8% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 8.0%**. Return on all capital, debt included, is 8.0%.
- **Return on assets: 5.9%**. Each dollar of assets produces 5.9% of profit.

## Growth
- **Revenue growth (1 yr): 22.6%** (3-yr 14.0%/yr, 5-yr 10.1%/yr). Revenue grew 22.6% over the last year, against 10.1% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 1257.1%**. Earnings per share rose 1257.1%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Debt to equity: 0.27**. Debt is 0.27 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Guidewire Software Inc. holds more cash than debt.
- **Current ratio: 2.77** (quick 2.77). Current assets cover the next year's liabilities 2.77 times.
- **Altman Z-score: 8.09**. A Z-score of 8.09 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 8/9**. 8 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend: none**. Guidewire Software Inc. does not currently pay a dividend.

## Analyst view
- **Analyst consensus: buy** (14 analysts). 14 analysts cover Guidewire Software Inc.; the consensus is buy, with an average price target of $204.57 (+26% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -25.1%** (YTD -19.2%, 3-mo 19.4%). The shares are down 25.1% over twelve months including dividends.
- **From 52-week high: -38.2%** (58.8% above the low). Trading 38% below its 52-week high, deep in a drawdown.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 41**. An RSI of 41 is neutral.
- **Beta (1 yr): 0.59** (volatility 61%). Beta of 0.59 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=GWRE · Page: https://foliofundamentals.com/stocks/gwre

Not investment advice.