Guidewire Software provides software products for property and casualty (P&C) insurers. It offers an integrated suite of software applications that address the core processes, such as underwriting and policy administration, claims management, and billing. The company was founded in 2001 and is based in Foster City, California.
GWRE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Guidewire Software Inc. To summarize, we found that Guidewire Software Inc ranked in the 11th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 92.33%. The most interesting components of our discounted cash flow analysis for Guidewire Software Inc ended up being:
In the past 5.52 years, Guidewire Software Inc has a compound free cash flow growth rate of 0.05%; that's higher than merely 24.1% of free cash flow generating stocks in the Technology sector.
The business' balance sheet suggests that 4% of the company's capital is sourced from debt; this is greater than only 15.58% of the free cash flow producing stocks we're observing.
Guidewire Software Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.85. This coverage rate is greater than that of only 21.24% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as GWRE, try ALTR, ON, WK, CASA, and PLT.
CAMBRIDGE, Mass. & SAN MATEO, Calif.--(BUSINESS WIRE)--Guidewire Software, Inc. (NYSE: GWRE), the platform P&C insurers trust to engage, innovate, and grow efficiently, today announced that Cambridge Mobile Telematics, Inc. (CMT), one of the world's largest smartphone telematics providers, has joined Guidewire PartnerConnect as a Solution partner. The companies also announced that CMT’s new Ready for Guidewire validated accelerator is now available to insurers in the Guidewire Marketplace.
Guidewire Software, Inc. (NYSE:GWRE) CFO Jeffrey Elliott Cooper sold 1,007 shares of Guidewire Software stock in a transaction dated Monday, January 11th. The stock was sold at an average price of $129.99, for a total transaction of $130,899.93. Following the transaction, the chief financial officer now directly owns 1,747 shares of the company’s stock, valued […]
Guidewire Software, Inc. (NYSE: GWRE), the platform Property & Casualty ("P&C") insurers trust to engage, innovate, and grow efficiently, today announced that management is scheduled to present at the following upcoming investor conferences: