GWREGuidewire Software, Inc.
Is the price fair?
Neither cheap nor expensive: modest expectations priced in, but rich vs its sector.
Priced for ~8% a year FCF growth. The price demands less than its three-year revenue growth of 18% a year, expectations look modest.
Sector median 30.5× across 203 covered peers. EV/EBIT counts debt as part of the price, so a cash-rich and a borrowed company can be compared on the same footing.
All from derived, as of Jul 31, 2026.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The growth-implied estimate assumes a fixed discount rate; capital-heavy sectors look structurally rich on it.
What GWRE's price assumes
Guidewire Software, Inc. trades at 103× earnings against 33.9× for the median Software - Application name, more expensive than its own group.
Trailing P/E · Software - Application median 33.9 · 3.04× the median: the market pays up for this one
- Price / sales
- 6.21
Price / sales · today's price, trailing year to Jul 31, 2026
- Free cash flow yield
- 4.1%
Free cash flow yield · Software - Application median 6.9%
- Growth the price implies
- +8.2%
Growth the price implies · The price pays for +8.2% free cash flow growth a year for a decade; the business has delivered +126% a year over the last three.
Details›
- Price / booktoday's price, trailing year to Jul 31, 2026
- 7.68
- EV / EBITtoday's price, trailing year to Jul 31, 2026
- 60.9
- EV / salestoday's price, trailing year to Jul 31, 2026
- 6.19
- Technology median P/E459 names
- 37.7
- Software - Application median P/E126 names
- 33.9
- Free cash flow, trailing twelve months
- $378M
- Market capitalisation
- $9.17B
- 3-year revenue growth
- +18%
- 3-year free cash flow growth
- +126%
Multiples from SEC filings and end-of-day closes; implied growth from a reverse discounted cash flow. Group medians across the names Ryufin tracks.
Software, Application
Ranks #53 of 96 by RyuScore