On June 12, 2026, Guidewire Software Inc GWRE shares rose 3.4% to a current price of $122.56. This increase comes amidst a challenging price performance over the past year, where shares have experienced a significant decline, with the 52-week high at $272.60 and a low of $113.67.
According to GF Value™, Guidewire Software Inc is currently undervalued, with a significant gap between its market price of $122.56 and the estimated intrinsic value of $201.44. This represents a 39.2% margin of safety for potential investors. The GF Valuation label indicates that the stock is significantly undervalued, presenting an opportunity for investors who are willing to consider the associated risks. However, caution is warranted, as the recent insider selling may suggest that those closest to the company do not see immediate upside potential.
GF Value™ is GuruFocus’ proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. This method of valuation provides a comprehensive perspective on the stock’s worth, emphasizing the current opportunity for long-term investors.
The current P/E ratio of 66.2x is significantly below its 5-year median of 269.4x, indicating that the stock is trading at a much lower valuation compared to its historical performance. This P/E analysis aligns with the GF Value™ verdict, suggesting that GWRE is undervalued in the current market context.
The GF Score™ of 71/100 indicates that Guidewire Software Inc is positioned above average in terms of its long-term performance potential. The strongest area is its Growth score of 8/10, which suggests solid prospects for future expansion. In contrast, the weakest area is the Momentum score of 2/10, reflecting recent poor price performance, which may cause concern for some investors.
In the past three months, insiders have sold $5.4 million worth of Guidewire Software shares, indicating a lack of confidence from management in the stock’s near-term potential. This trend of insider selling could potentially reflect their views on the company’s performance or market conditions. With no insider buying reported during this period, it may suggest a cautious sentiment among those closest to the company.
Based on the GF Value™ assessment, Guidewire Software Inc GWRE is currently undervalued. The substantial difference between the current price and the GF Value™ indicates a potential opportunity for investors who are willing to navigate the existing risks. However, the recent insider selling and the low momentum score should be considered when evaluating the investment’s attractiveness.
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 71/100, indicating that the stock is above average in terms of potential long-term performance.
Is GWRE overvalued or undervalued?
GWRE is currently undervalued, with a GF Value™ of $201.44 compared to its current price of $122.56, representing a significant upside potential.
What is GWRE’s P/E ratio?
GWRE’s P/E ratio (TTM) is 66.2x, which is substantially lower than its 5-year median of 269.4x, indicating that 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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