On June 22, 2026, Guidewire Software Inc GWRE shares fell 4.8% to a current price of $102.69. This decline marks a significant drop over the past month, with shares down 26.8%. The stock has traded within a 52-week range of $102.30 to $272.60.
Guidewire Software Inc GWRE currently trades at $102.69, significantly below its GF Value™ estimate of $202.40, indicating a 49.3% undervaluation. This substantial margin of safety suggests that the stock presents an opportunity for potential investors. The GF Valuation label indicates that the stock is significantly undervalued, reinforcing the notion that the current market price does not reflect the company’s intrinsic value. GF Value™ is GuruFocus’ proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
While the undervaluation appears attractive, investors should exercise caution given the recent insider selling activity, which may signal underlying concerns within the company. Additionally, the stock’s performance has deteriorated considerably year-to-date, down 48.9%, which may impact investor sentiment and future price movements.
The current P/E (TTM) of 55.5x is 79% below its 5-year median P/E of 267.5x, indicating that GWRE is trading well below its historical valuation. This analysis agrees with the GF Value™ verdict of undervaluation, providing additional context for the current price relative to its earnings potential.
The GF Score™ of 70/100 reflects an above-average rank, driven by strong growth potential (8/10) and solid financial strength (7/10). However, the momentum rank is notably weak at 2/10, suggesting recent performance issues. The valuation rank of 4/10 also indicates that while the company may be undervalued, there are concerns regarding its market performance.
In the past three months, insiders of Guidewire Software Inc have sold $3.8 million worth of stock, with no reported purchases. This pattern of insider selling may suggest that those closer to the company are cautious about its short-term prospects, which could be a red flag for potential investors. The lack of insider buying further emphasizes the uncertainty surrounding the company’s future performance.
Based on the GF Value™ analysis, Guidewire Software Inc GWRE is currently undervalued, trading at a significant discount to its estimated intrinsic value. While this presents an opportunity for potential upside, investors should remain cautious due to the recent insider selling and the company’s poor performance over the past year.
For the complete analysis, visit the Guidewire Software Inc GWRE stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
What is GWRE’s GF Score™?
GWRE’s GF Score™ is 70/100, indicating an above-average assessment based on key financial metrics, suggesting potential for higher long-term returns.
Is GWRE overvalued or undervalued?
GWRE is currently undervalued, with a GF Value™ of $202.40 compared to its market price of $102.69, indicating a significant margin for appreciation.
What is GWRE’s P/E ratio?
GWRE’s P/E (TTM) is 55.5x, which is substantially lower than its 5-year median P/E of 267.5x, suggesting the stock is trading below its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
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