Guidewire Software, Inc. — Software - Application. Scored on the same transparent 7-signal model behind the daily rankings.
★
GWRE
Guidewire Software, Inc. · Software - Application
FCF$337mC
Rev+22.6%A-
D/E0.53B
P/E74.3xC
PEG0.76A-
71.4Score
$138.27$11.5B
1Y Target$203.42Analyst consensus · 12 analysts
5Y Target$297.82Compound horizon
10Y Target$441.80Long-dated conviction
FCF$337mTTMC
FCF $337m — modest; watch for margin expansion
Rev+22.6%TTM YoYA-
Revenue +22.6% — strong growth, well above S&P median (~7%)
D/E0.53B
D/E 0.53 — near the Technology debt median (≈60th pctile)
P/E74.3xC
P/E 74.3 — expensive vs Technology peers (≈90th pctile)
PEG0.76A-
PEG 0.76 — strong; Lynch's preferred zone
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 71.4
Quality0.58
Growth0.91
Value0.69
Entry · Margin of safety
52-week rangeNear 52-week low
49% off the 12-month high
vs DCF fair value61% aboveest. fair value ~$86
Quality signals · context only
Gross profitability36% · B+gross profit ÷ total assets (Novy-Marx)
ROIC5.4% · C+return on invested capital — not score-weighted
Why now
Software - Application · market cap $11.5b. Down 49% from 52-week high of $272.60 — deep drawdown territory. Revenue growing +23%, comfortably above the S&P median. PEG 0.76 — paying under fair value for the growth rate. 12 sell-side analysts rate this a Buy with a mean 1-yr target of $203.42 (implying +47% upside).
Moat
ROE 12% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong. Software economics — recurring revenue, embedded customer workflows, and high gross margin all compound the moat once a base account is won. Switching costs are the lever.
Risk
Trailing P/E 74.3x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. Down 49% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Software — competitive moat is durable until it isn't; watch net revenue retention, gross margin trends, and any new market entrant with a fundamentally lower price point.
Horizon
1-3 yr $203.42 (12-analyst consensus) — fundamentals + valuation re-rating. 5 yr $297.82 at ~17% CAGR — compounding case rests on the competitive position widening. 10 yr $441.80 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Score history · GWRE
Trend
-1.6 over 14 daily scores
From 73.0 (Jun 22) → 71.4 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Position sizing · GWRE
$
%
%
Shares to buy
14
Position size
$1,936
3.9% of portfolio
Stop price
$103.70
25% below $138.27
$ at risk if stopped
$483.95
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Guidewire Software, Inc. (GWRE): score, valuation & FAQ
Guidewire Software, Inc. (GWRE) is a Software - Application company that scores 71.4 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are Rev (A-) and PEG (A-). On valuation, GWRE sits about 61% above our discounted-cash-flow fair value (i.e. the DCF flags it as rich).
Is GWRE a good stock to buy?
Bull Rankings scores GWRE 71.4 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by Rev (A-) and PEG (A-). A score is a quantitative screen of Guidewire Software, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does GWRE score 71.4 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). GWRE earns its highest marks on Rev (A-) and PEG (A-). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is GWRE overvalued or undervalued?
Based on $138.27, GWRE sits about 61% above our discounted-cash-flow fair value (i.e. the DCF flags it as rich). It trades at a 74.3x× P/E (graded C). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in GWRE?
Trailing P/E 74.3x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. Down 49% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Software — competitive moat is durable until it isn't; watch net revenue retention, gross margin trends, and any new market entrant with a fundamentally lower price point.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.