Guidewire Software, Inc. (GWRE) Financial Ratios
17 years of historical data (2009–2025) · Technology · Software - Application
EV/EBITDA
182.26
↓-39% vs avg
5yr avg: 300.06
30Y Low44.5·High44.5
P/FCF
↓
39.98
↓-73% vs avg
5yr avg: 146.08
30Y Low39.7·High125.5
P/B Ratio
↑
8.23
+5% vs avg
5yr avg: 7.81
30Y Low4.3·High13.3
ROE
↑
5.0%
↓+224% vs avg
5yr avg: -4.0%
30Y Low-12%·High196%
Debt/EBITDA
11.04
+0% vs avg
5yr avg: 11.04
30Y Low7.7·High24.6
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
GWRE Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Guidewire Software, Inc. trades at 172.3x earnings, 38% below its 5-year average of 279.3x, sitting at the 33rd percentile of its historical range. Compared to the Technology sector median P/E of 27.7x, the stock trades at a premium of 523%. On a free-cash-flow basis, the stock trades at 40.0x P/FCF, 73% below the 5-year average of 146.1x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $11.8B | $19.4B | $12.3B | $7.0B | $6.5B | $9.6B | $9.7B | $8.4B | $6.7B | $5.4B | $4.5B |
| Enterprise Value | $11.8B | $19.5B | $12.2B | $7.0B | $6.4B | $9.7B | $9.8B | $8.5B | $6.6B | $5.2B | $4.3B |
| P/E Ratio → | 172.32 | 279.28 | — | — | — | — | — | 408.32 | — | 300.67 | 307.35 |
| P/S Ratio | 9.81 | 16.16 | 12.60 | 7.70 | 7.99 | 12.95 | 13.13 | 11.73 | 10.13 | 10.57 | 10.68 |
| P/B Ratio | 8.23 | 13.34 | 9.20 | 5.81 | 4.47 | 6.23 | 5.88 | 5.36 | 4.70 | 6.09 | 5.78 |
| P/FCF | 39.98 | 65.85 | 69.68 | 332.42 | — | 116.38 | 111.53 | 125.47 | 52.15 | 41.66 | 48.87 |
| P/OCF | 39.22 | 64.60 | 63.09 | 181.54 | — | 86.28 | 86.22 | 72.68 | 47.69 | 39.63 | 45.39 |
P/E links to full P/E history page with 30-year chart
GWRE EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Guidewire Software, Inc.'s enterprise value stands at 182.3x EBITDA, 39% below its 5-year average of 300.1x. The Technology sector median is 17.5x, placing the stock at a 944% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 16.18 | 12.49 | 7.75 | 7.83 | 13.07 | 13.26 | 11.82 | 9.93 | 10.06 | 10.16 |
| EV / EBITDA | 182.26 | 300.06 | — | — | — | — | 524.78 | 205.27 | 232.19 | 114.09 | 170.53 |
| EV / EBIT | 287.70 | 310.70 | — | — | — | — | — | 285.48 | — | 181.24 | 207.43 |
| EV / FCF | — | 65.91 | 69.09 | 334.65 | — | 117.41 | 112.60 | 126.41 | 51.12 | 39.64 | 46.46 |
GWRE Profitability
Margins and return-on-capital ratios measuring operating efficiency
Guidewire Software, Inc. earns an operating margin of 3.4%. Operating margins have expanded from -16.5% to 3.4% over the past 3 years, signaling improving operational efficiency. ROE of 5.0% is modest. ROIC of 2.3% represents below-average returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 62.5% | 62.5% | 59.5% | 50.6% | 46.4% | 52.4% | 54.5% | 54.9% | 53.9% | 61.8% | 64.2% |
| Operating Margin | 3.4% | 3.4% | -5.4% | -16.5% | -24.5% | -14.2% | -3.2% | 0.2% | -1.1% | 5.2% | 3.9% |
| Net Profit Margin | 5.8% | 5.8% | -0.6% | -12.4% | -22.2% | -8.9% | -3.7% | 2.9% | -3.0% | 4.1% | 3.5% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 5.0% | 5.0% | -0.5% | -8.4% | -12.0% | -4.2% | -1.7% | 1.4% | -1.7% | 2.5% | 2.0% |
| ROA | 2.8% | 2.8% | -0.3% | -5.2% | -7.9% | -2.8% | -1.2% | 1.0% | -1.3% | 2.1% | 1.7% |
| ROIC | 2.3% | 2.3% | -3.2% | -8.7% | -10.1% | -4.7% | -1.1% | 0.1% | -0.6% | 3.4% | 2.4% |
| ROCE | 2.3% | 2.3% | -3.5% | -8.3% | -10.1% | -5.1% | -1.2% | 0.1% | -0.5% | 3.1% | 2.2% |
GWRE Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Guidewire Software, Inc. carries a Debt/EBITDA ratio of 11.0x, which is highly leveraged (278% above the sector average of 2.9x). Net debt stands at $17M ($716M total debt minus $699M cash). Interest coverage of 3.1x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.49 | 0.49 | 0.33 | 0.37 | 0.33 | 0.30 | 0.28 | 0.20 | 0.21 | — | — |
| Debt / EBITDA | 11.04 | 11.04 | — | — | — | — | 24.56 | 7.66 | 10.79 | — | — |
| Net Debt / Equity | — | 0.01 | -0.08 | 0.04 | -0.09 | 0.06 | 0.06 | 0.04 | -0.09 | -0.29 | -0.29 |
| Net Debt / EBITDA | 0.26 | 0.26 | — | — | — | — | 4.99 | 1.53 | -4.67 | -5.80 | -8.84 |
| Debt / FCF | — | 0.06 | -0.59 | 2.23 | — | 1.04 | 1.07 | 0.94 | -1.03 | -2.02 | -2.41 |
| Interest Coverage | 3.11 | 3.11 | -7.80 | -22.26 | -10.26 | -5.64 | -1.33 | 0.08 | -1.14 | — | — |
GWRE Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Guidewire Software, Inc.'s current ratio of 2.77x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The current ratio has declined from 2.95x to 2.77x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.77 | 2.77 | 1.55 | 2.95 | 3.71 | 4.51 | 5.96 | 5.75 | 5.43 | 4.15 | 5.94 |
| Quick Ratio | 2.77 | 2.77 | 1.55 | 2.95 | 3.71 | 4.51 | 5.96 | 5.75 | 5.43 | 4.15 | 5.94 |
| Cash Ratio | 2.11 | 2.11 | 1.20 | 2.14 | 2.89 | 3.73 | 5.03 | 4.84 | 4.74 | 3.50 | 5.28 |
| Asset Turnover | — | 0.44 | 0.44 | 0.45 | 0.36 | 0.32 | 0.31 | 0.33 | 0.33 | 0.48 | 0.46 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 82.44 | 90.15 | 103.41 | 102.16 | 94.74 | 85.93 | 93.73 | 72.63 | 56.38 | 54.00 |
GWRE Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Guidewire Software, Inc. does not currently pay a dividend and has no material buyback yield, reinvesting earnings back into the business. The earnings yield of 0.6% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.6% | 0.4% | — | — | — | — | — | 0.2% | — | 0.3% | 0.3% |
| FCF Yield | 2.5% | 1.5% | 1.4% | 0.3% | — | 0.9% | 0.9% | 0.8% | 1.9% | 2.4% | 2.0% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 3.8% | 0.6% | 1.7% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 3.8% | 0.6% | 1.7% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $86M | $82M | $82M | $84M | $84M | $83M | $83M | $78M | $75M | $74M |
Peer Comparison
Compare GWRE with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 GWREYou | $12B | 172.3 | 182.3 | 40.0 | 62.5% | 3.4% | 5.0% | 2.3% | 11.0 |
 SPNS | $2B | 33.7 | 22.1 | 33.6 | 45.0% | 16.8% | 15.5% | 17.4% | 0.6 |
 NOW | $97B | 56.0 | 37.6 | 21.2 | 77.5% | 13.7% | 15.5% | 12.4% | 1.3 |
 VEEV | $27B | 30.9 | 28.4 | 19.3 | 75.5% | 28.7% | 13.9% | 12.9% | 0.1 |
 PCTY | $6B | 27.1 | 14.3 | 17.3 | 68.8% | 19.1% | 20.0% | 26.2% | 0.5 |
 NCNO | $2B | -53.9 | 122.0 | 39.4 | 60.1% | -3.4% | -3.5% | -1.2% | 13.0 |
 APPF | $6B | 43.8 | 34.7 | 25.6 | 61.3% | 16.1% | 26.5% | 22.4% | 0.4 |
 BSY | $10B | 39.6 | 25.6 | 18.9 | 81.5% | 24.1% | 24.9% | 11.4% | 3.0 |
 PGR | $115B | 13.6 | 11.0 | 7.7 | 27.7% | 14.2% | 37.0% | 27.0% | 0.6 |
 TRV | $65B | 10.9 | 8.6 | — | 44.3% | 16.0% | 20.7% | 15.3% | 1.1 |
 ALL | $55B | 5.6 | 4.5 | 5.6 | 33.2% | 19.8% | 39.6% | 29.8% | 0.5 |
| Technology Median | — | 27.7 | 17.5 | 19.2 | 48.5% | -0.6% | 2.4% | 2.9% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonGWRE — Frequently Asked Questions
Quick answers to the most common questions about buying GWRE stock.
What is Guidewire Software, Inc.'s P/E ratio?
Guidewire Software, Inc.'s current P/E ratio is 172.3x. The historical average is 156.8x. This places it at the 33th percentile of its historical range.
What is Guidewire Software, Inc.'s EV/EBITDA?
Guidewire Software, Inc.'s current EV/EBITDA is 182.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 44.5x.
What is Guidewire Software, Inc.'s ROE?
Guidewire Software, Inc.'s return on equity (ROE) is 5.0%. The historical average is 13.7%.
Is GWRE stock overvalued?
Based on historical data, Guidewire Software, Inc. is trading at a P/E of 172.3x. This is at the 33th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What are Guidewire Software, Inc.'s profit margins?
Guidewire Software, Inc. has 62.5% gross margin and 3.4% operating margin.
How much debt does Guidewire Software, Inc. have?
Guidewire Software, Inc.'s Debt/EBITDA ratio is 11.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.