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Guidewire Software, Inc (0J1G) fair value: what the stock is really worth
As of Oct 2, 2026: fair value of Guidewire Software, Inc $33.96, price $154, upside -77.9%, quality 72 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
- Fair value above price? No
- Good quality? Yes
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Broad data
Sep 24, 2026
Guidewire Software, Inc
0J1G · LSEStretched ValuationQuality growthStrong overvaluation with only moderate quality.
!Fair value $33.96 · Strongly overvalued (−77.9%)
✓Quality 72/100
✓Healthy Growth (revenue 5y +10.1 %/yr)
✓Solidly profitable · 11.3% net margin (TTM)
✓generates free cash flow
!Moderate moat 47/100
What runs behind every stock
26
valuation models
8 families, DCF to NCAV
37
quality factors
margins, balance sheet, cashflow, debt
6
AI factors
moat, what no ratio measures
2,000+
data points
verified, per stock, median
69 individual criteria per stock, every one traceable See the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Sep 24, 2026.
How to read this chart
10‑month range $103.88 – $216.77 · fair‑value band $23.78 – $44.14 · the $153.57 price screens above the $33.96 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Sep 24, 2026.
Company profile
Guidewire Software, Inc. provides a platform for property and casualty (P&C) insurers worldwide. It offers Guidewire InsuranceSuite, such as PolicyCenter, ClaimCenter, and BillingCenter applications.
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Guidewire Software, Inc. provides a platform for property and casualty (P&C) insurers worldwide. It offers Guidewire InsuranceSuite, such as PolicyCenter, ClaimCenter, and BillingCenter applications. The company also provides Guidewire InsuranceNow, a cloud-based application that offers policy administration, claims management, and billing functionality, plus pre-integrated document production, analytics, and other capabilities. In addition, it offers Guidewire Rating Management to manage the pricing of insurance products; Guidewire Reinsurance Management to use rules-based logic to execute reinsurance strategy through underwriting and claims processes; Guidewire Client Data Management that helps P&C insurers to capitalize on customer information; Guidewire Advanced Product Designer, a cloud-native application for insurance product design and management; Guidewire Product Content Management provides software tools and standards-based, line-of-business templates. Further, the company provides Guidewire Digital Engagement Applications, which enable insurers to provide digital experiences; Guidewire Predict, a P&C-specific machine-learning platform; Guidewire HazardHub that allows insurers to understand, assess, price, and manage property risk; Guidewire Canvas, Guidewire Compare, Guidewire industry Intel, Guidewire Data Studio, and Guidewire Explore, an cloud-native applications; Guidewire Cyence, a cyber-risk economic modeling product; Guidewire DataHub, an operational data store; and Guidewire InfoCenter, a business intelligence warehouse for P&C insurers . The company was incorporated in 2001 and is headquartered in San Mateo, California.
Stock analysis
Guidewire Software, Inc (0J1G) currently trades at $153.57, while our model-based Fair Value estimate is $33.96, 77.9% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $44.35 per share, and 0 of the 24 models we run sit above the $153.57 price.
Bear case: the Economic Profit group reads lowest at $11.36, and 24 of the 24 models stay below the price. Evidence for this calculation is high.
Scenario range: $23.78 (bear) to $44.14 (bull), the price of $153.57 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 72/100 (solid quality).
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Guidewire Software, Inc reported revenue of $1.2B in FY2025 versus $743M in FY2021, a compound +12.8%/yr. Reported net income was $69.8M in FY2025.
Key figures
Market cap $13.2B · EPS (TTM) $−1.80 · Net margin 5.8% · Return on equity 11.9% · Return on assets (EBIT) −3.9% · Operating margin 8.2% · Revenue (TTM) $1.4B · Revenue growth (YoY) +26.9%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 48 out of 100 (low confidence).
Fair Value models
The price assumes far more growth than our models allow for, so the models scatter widely ($11.36 to $95.28). Read the Fair Value as a cautious anchor, not a price target; the Growth Forecast section shows what the price assumes.
Bear $23.78
Fair Value $33.96
Bull $44.14
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model.
Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.
Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Highest evidence
FCF DCF
$55.90
$95.28
$163.30
76
5Y EBITDA Exit
$30.80
$41.36
$53.79
74
Growth DCF
$55.14
$90.05
$147.51
74
All 24 models by family
DCF Models
FCF DCF
$55.90
$95.28
$163.30
76
Owner Earnings
$27.17
$42.61
$69.27
72
5Y Revenue Exit
$27.20
$33.78
$41.41
71
5Y EBITDA Exit
$30.80
$41.36
$53.79
74
5Y P/E Exit
$32.21
$44.35
$57.77
69
10Y Revenue Exit
$36.51
$46.26
$59.10
66
10Y EBITDA Exit
$39.02
$51.76
$69.46
67
10Y P/E Exit
$39.94
$53.93
$72.79
62
Earnings-Based
Graham-Dodd
$5.89
$29.53
$40.76
64
Lynch FV
$8.00
$11.42
$14.85
61
PEG = 1.0
$8.00
$11.42
$14.85
57
EPV
$10.99
$11.36
$11.67
70
Multiples
P/E Multiple
$12.99
$17.32
$21.65
63
P/S Multiple
$11.04
$14.72
$18.40
58
P/B Multiple
$11.04
$14.72
$18.40
55
EV/EBIT
$15.54
$17.83
$20.12
63
EV/EBITDA
$19.38
$22.95
$26.53
64
EV/Revenue
$13.29
$15.28
$17.27
52
Asset-Based
NCAV (Graham)
$9.04
$12.11
$18.08
51
Growth DCF
Growth DCF
$55.14
$90.05
$147.51
74
Rev-Margin DCF
$27.20
$34.34
$43.87
71
Economic Profit
Residual Income
$13.56
$13.57
$14.25
71
ROIC Compounder
$10.99
$11.36
$11.67
70
Growth Earnings
Growth-Adj P/E
$11.89
$16.98
$22.07
67
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Set up alert →Quality Score breakdown
Overall quality
72/100
Of which business quality 71 · Market factors (momentum, volatility) 40
Profitability
34
Margins and returns on capital today
Quality Growth
80
Are margins and returns improving?
Cashflow
96
Earnings quality: real cash, not paper profit
Fin. Strength
76
Balance sheet, leverage, solvency risk
Investment
91
Disciplined investing over empire-building
Low Volatility
33
Calm price path (market factor)
Momentum
54
Price trend over the last 3–12 months (market factor)
52W Momentum
23
Distance to the 52-week high (market factor)
Net Issuance
55
Share count: buybacks or dilution?
Revenue & earnings trend
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.
86/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+22.6%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+14.0%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+10.1%
Start year 2020 (pandemic). Over 10 years: +12.2% a year
Revenue growth 17 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+18.1%
’14
’15
’16
’17
’18
’19
’20
’21
’22
’23
’24
’25
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+26.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year+26.5%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.26.5% vs 14.9%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.−3% → 3%
Start year 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+24.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+16.4%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +21.3% a year for the price and +13.7% for the forecasts.
Forecast 2026 (sales)+19.0%
Forecast 2027 (sales)+19.0%
Projected 2028 (sales)+16.9%
Projected 2029 (sales)+14.7%
Projected 2030 (sales)+12.6%
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Values & ESG
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Frequently asked questions
Is Guidewire Software, Inc (0J1G) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of $33.96 versus a price of $153.57, about −78% upside (overvalued).
What is the fair value of 0J1G?
Our model-based fair value for Guidewire Software, Inc is $33.96 (as of Sep 24, 2026), built from audited fundamentals. The current price: $153.57.
What is the quality score of 0J1G?
Guidewire Software, Inc has a Quality Score of 72/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Guidewire Software, Inc (0J1G)?
Our model-based price target is the fair value of $33.96 (as of Sep 24, 2026) from 24 valuation models. Cautious scenario $23.78, optimistic scenario $44.14. It is a calculation from audited fundamentals, not an analyst target.
What is the Guidewire Software, Inc stock forecast for 2026?
Our models put fair value at $33.96, about −78% upside versus a price of $153.57 (overvalued). Cautious scenario $23.78, optimistic scenario $44.14. The calculation is refreshed regularly with new filings.
What is the revenue of Guidewire Software, Inc (0J1G)?
Guidewire Software, Inc reported trailing-twelve-month revenue of about $1.4B (latest available figure, as of Sep 24, 2026).
What growth is priced into Guidewire Software, Inc (0J1G)?
For today's price to be fair in a discounted-cash-flow model, Guidewire Software, Inc would have to grow free cash flow by +24.2 % per year for five years (discount rate 10.1 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +10.1 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of 0J1G use?
Our models discount Guidewire Software, Inc at 10.1 %: a base by market capitalisation (unknown), damped by beta 0.95, country premium for United Kingdom. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Guidewire Software, Inc that is +24.2 % per year a year over ten years, using the same discount rate (10.1 %) and the same formula as our fair value.
How much growth has Guidewire Software, Inc (0J1G) delivered so far?
Over the past 5 years revenue at Guidewire Software, Inc grew +10.1 % a year. The price currently implies +24.2 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
What is the free cash flow yield of Guidewire Software, Inc (0J1G)?
The free-cash-flow yield on the price is 2.24 %: that much free cash flow Guidewire Software, Inc produces per unit of market value. When it exceeds the discount rate of our models (10.1 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Guidewire Software, Inc (0J1G)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Guidewire Software, Inc it is $33.96 per share (as of Sep 24, 2026), against a price of $153.57. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Guidewire Software, Inc stock overvalued or undervalued in 2026?
As of Sep 24, 2026, 0J1G trades above its calculated fair value: price $153.57, fair value $33.96, a gap of about −78% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 0J1G?
No. The price is what the market pays today ($153.57); the fair value is what the company's own numbers justify ($33.96). For Guidewire Software, Inc the two are $119.61 per share apart. That gap is exactly why we show both numbers side by side.
How much is Guidewire Software, Inc worth?
The market values Guidewire Software, Inc at about $13.2B (market capitalisation, as of Sep 24, 2026). Per share that is $153.57; our models calculate a fair value of $33.96 per share.
What do the bullish and bearish scenarios say about 0J1G?
Our models span a range for Guidewire Software, Inc: cautious scenario $23.78, base $33.96, optimistic $44.14 per share (as of Sep 24, 2026, price $153.57). The range comes from different growth and margin assumptions, not from analyst opinions.
Is Guidewire Software, Inc stock attractive at the current price?
The data as of Sep 24, 2026: price $153.57, calculated fair value $33.96 (−78%), Quality Score 72/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 0J1G calculated?
We run Guidewire Software, Inc through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $33.96, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. Guidewire Software, Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Guidewire Software, Inc (0J1G)?
The closing price on Oct 2, 2026 was $153.57. Our model-based fair value is $33.96, about −78% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Guidewire Software, Inc right now?
A high-quality business (quality 72/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety. The price sits above even our optimistic bull case ($44.14). The favourable scenario is already priced in. A fairly wide model range ($23.78 to $44.14) leaves room in how you read the outcome.
Key figures of Guidewire Software, Inc
How large is the market capitalisation of Guidewire Software, Inc (0J1G)?
The market capitalisation of Guidewire Software, Inc is $13.2B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What are the earnings per share of Guidewire Software, Inc (0J1G)?
Earnings per share at Guidewire Software, Inc are $−1.80. Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Guidewire Software, Inc (0J1G)?
The net margin of Guidewire Software, Inc is 5.8% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Guidewire Software, Inc (0J1G)?
The return on equity (ROE) of Guidewire Software, Inc is 11.9% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Guidewire Software, Inc (0J1G)?
On an EBIT basis the return on assets of Guidewire Software, Inc is −3.9% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Guidewire Software, Inc (0J1G)?
The operating margin of Guidewire Software, Inc is 8.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Guidewire Software, Inc (0J1G)?
Revenue at Guidewire Software, Inc is growing +26.9% versus a year earlier (3y avg +14.0%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Guidewire Software, Inc (0J1G)?
Earnings per share at Guidewire Software, Inc are growing −64.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Guidewire Software, Inc (0J1G) carry?
The net debt of Guidewire Software, Inc is $17.8M (fiscal year 2025, ≈ 0.1 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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