Guidewire

GWRE is overvalued

NYSE · Technology

FAIR PRICE

41.9%downside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

$189.18

MARKET PRICE

$109.84

FAIR PRICE

$79.34

MARGIN

UNDERFAIROVER

COMMUNITY BUY ZONE

UNLOCKS AT 10

Where does the market buy GWRE?

No one has priced GWRE yet — be the first. Every investor sets the maximum price they'd still buy at; together that maps the community buy zone.

COMMUNITY MEDIAN

▓▓▓▓▓

BUYERS AT TODAY'S PRICE

▓▓ %

0/10 INVESTORS · 10 MORE TO UNLOCK

METRICS

P/E94.7
P/B11.5
P/S10.7
PEG
DIV YIELD
ROE11.0%
ROIC5.8%
DEBT/EQ0.53
MKT CAP$15B

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FPI RATING

5.5/ 10

Low debt levels, but expensive valuation relative to fundamentals.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$87.87CONSERVATIVE ENTRY
$109.84FAIR PRICE
$189.18MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$87.87

Fair price × 0.80

DISTANCE

53.6%

Price to entry level

At the current price of $189.18, GWRE trades 53.6% above the conservative entry level of $87.87. This entry level represents a 20% margin of safety below the calculated fair price of $109.84 — a buffer that accounts for estimation uncertainty in the valuation model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

SYNCING FEED

P/E RATIO HISTORY

SYNCING FEED

METHODOLOGY

How we calculate GWRE's fair price

Guidewire's fair price of $109.84 is derived from a blended model that combines DCF analysis (50%), relative valuation against Technology peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $189.18, GWRE trades 41.9% above its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting GWRE's risk profile.

RELATIVE · 30%

Comparing GWRE's valuation multiples against Technology peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for GWRE, weighted by recency and analyst accuracy.

TRY IT YOURSELF

Want to test your own assumptions? Use our free calculators to estimate GWRE's fair value with your own inputs.

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FAQ

What is the fair price of GWRE?+

Based on our blended model combining DCF analysis (50%), relative valuation against Technology peers (30%), and analyst consensus (20%), the fair price for Guidewire is $109.84. At the current market price of $189.18, GWRE trades 41.9% above its calculated fair value.

Is GWRE overvalued or undervalued?+

Guidewire is currently overvalued based on our valuation model. The stock trades at $189.18, which is 41.9% above the fair price of $109.84. The P/E ratio of 94.7x is a key metric in the valuation.

What is the margin of safety for GWRE?+

With a 20% margin of safety applied to the fair price of $109.84, the conservative entry level for GWRE is $87.87. At the current market price of $189.18, the stock trades 53.6% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is GWRE's fair price updated?+

We update fair price calculations for GWRE daily after market close. The current fair price of $109.84 incorporates the latest market data and sector multiples.

What factors affect GWRE's fair price calculation?+

GWRE's fair price of $109.84 is derived from DCF analysis (50% weight), relative valuation against Technology peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 94.7x, ROE of 11.0%.

Is GWRE a good buy right now?+

At $189.18, GWRE trades 41.9% above our fair value estimate of $109.84. The stock is currently overvalued. ROE stands at 11.0% (average). Fair Price Index provides valuation data — always do your own research before investing.

Does GWRE pay dividends?+

GWRE does not currently pay a dividend.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.