Guidewire Software Valuation
| GWRE Stock | USD 107.90 0.44 0.41% |
At this time, the firm appears to be fairly valued. Guidewire Software retains a regular Real Value of $104.77 per share. The prevalent price of the firm is $107.9. Our model calculates the value of Guidewire Software from evaluating the firm fundamentals such as Return On Asset of -0.0297, current valuation of 8.77 B, and Return On Equity of -0.041 as well as inspecting its technical indicators and probability of bankruptcy. In general, most investors encourage purchasing undervalued assets and exiting overvalued assets since, at some point, asset prices and their ongoing real values will come together. Key fundamental drivers impacting Guidewire Software's valuation include:
Price Book 7.3796 | Enterprise Value 8.8 B | Enterprise Value Ebitda (203.78) | Price Sales 10.013 | Forward PE 64.5161 |
Fairly Valued
Today
Please note that Guidewire Software's price fluctuation is very steady at this time. Calculation of the real value of Guidewire Software is based on 3 months time horizon. Increasing Guidewire Software's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Guidewire Software is useful when determining the fair value of the Guidewire stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Guidewire Software. Since Guidewire Software is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Guidewire Stock. However, Guidewire Software's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 107.9 | Real 104.77 | Target 98.0 | Hype 108.35 |
The real value of Guidewire Stock, also known as its intrinsic value, is the underlying worth of Guidewire Software Company, which is reflected in its stock price. It is based on Guidewire Software's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Guidewire Software's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Guidewire Software's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Guidewire Software helps investors to forecast how Guidewire stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Guidewire Software more accurately as focusing exclusively on Guidewire Software's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Guidewire Software's intrinsic value based on its ongoing forecasts of Guidewire Software's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Guidewire Software's closest peers. When choosing an evaluation method for Guidewire Software, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Guidewire Software Investments |
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Guidewire Valuation Trend
Knowing Guidewire Software's actual value is paramount for traders to make sound investment determinations. Guidewire Software's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Guidewire Software's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Guidewire Software's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Guidewire Market Cap
Guidewire Software is rated below average in market capitalization category among related companies. Market capitalization of Information Technology industry is currently estimated at about 199.39 Billion. Guidewire Software holds roughly 9.11 Billion in market capitalization claiming about 5% of equities under Information Technology industry.Guidewire Software Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Guidewire Software's current stock value. Our valuation model uses many indicators to compare Guidewire Software value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Guidewire Software competition to find correlations between indicators driving Guidewire Software's intrinsic value. More Info.Guidewire Software is rated # 2 in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about 0.02 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Guidewire Software is roughly 58.54 . As of April 18, 2024, Price To Book Ratio is expected to decline to 3.46. Comparative valuation analysis is a catch-all model that can be used if you cannot value Guidewire Software by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Guidewire Software's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Guidewire Software's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Guidewire Software's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Guidewire Software and how it compares across the competition.
About Guidewire Software Valuation
The stock valuation mechanism determines the current worth of Guidewire Software on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Guidewire Software. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Guidewire Software based exclusively on its fundamental and basic technical indicators. By analyzing Guidewire Software's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Guidewire Software's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Guidewire Software. We calculate exposure to Guidewire Software's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Guidewire Software's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 526.9 M | 287.4 M | |
| Pretax Profit Margin | (0.17) | (0.16) | |
| Operating Profit Margin | (0.19) | (0.18) | |
| Net Loss | (0.14) | (0.13) | |
| Gross Profit Margin | 0.58 | 0.62 |
8 Steps to conduct Guidewire Software's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Guidewire Software's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Guidewire Software's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Guidewire Software's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Guidewire Software's revenue streams: Identify Guidewire Software's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Guidewire Software's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Guidewire Software's growth potential: Evaluate Guidewire Software's management, business model, and growth potential.
- Determine Guidewire Software's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Guidewire Software's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Guidewire Software Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Guidewire Software does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 82.2 M | |
| Quarterly Earnings Growth Y O Y | 0.66 | |
| Forward Price Earnings | 64.5161 |
Guidewire Software Current Valuation Indicators
Valuation refers to the process of determining the present value of Guidewire Software and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Guidewire we look at many different elements of the entity such as Guidewire's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Guidewire Software's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Guidewire Software's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Guidewire Software, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Guidewire Software's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Guidewire Software's worth.When determining whether Guidewire Software is a strong investment it is important to analyze Guidewire Software's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Guidewire Software's future performance. For an informed investment choice regarding Guidewire Stock, refer to the following important reports: Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Guidewire Software. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area. For information on how to trade Guidewire Stock refer to our How to Trade Guidewire Stock guide.You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Complementary Tools for Guidewire Stock analysis
When running Guidewire Software's price analysis, check to measure Guidewire Software's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Guidewire Software is operating at the current time. Most of Guidewire Software's value examination focuses on studying past and present price action to predict the probability of Guidewire Software's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Guidewire Software's price. Additionally, you may evaluate how the addition of Guidewire Software to your portfolios can decrease your overall portfolio volatility.
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Is Guidewire Software's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Guidewire Software. If investors know Guidewire will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Guidewire Software listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.66 | Earnings Share (0.62) | Revenue Per Share 11.319 | Quarterly Revenue Growth 0.036 | Return On Assets (0.03) |
The market value of Guidewire Software is measured differently than its book value, which is the value of Guidewire that is recorded on the company's balance sheet. Investors also form their own opinion of Guidewire Software's value that differs from its market value or its book value, called intrinsic value, which is Guidewire Software's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Guidewire Software's market value can be influenced by many factors that don't directly affect Guidewire Software's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Guidewire Software's value and its price as these two are different measures arrived at by different means. Investors typically determine if Guidewire Software is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Guidewire Software's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.