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Guidewire Software Inc (NYSE:GWRE)
Shiller P/E Ratio
(As of Today)

As of today, Guidewire Software Inc's current share price is \$52.36. Guidewire Software Inc's E10 for the quarter that ended in Oct. 2016 was \$0.00. Guidewire Software Inc's Shiller P/E Ratio for today is .

During the past 8 years, Guidewire Software Inc's highest Shiller P/E Ratio was 1.50. The lowest was 0.00. And the median was 1.21.

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Guidewire Software Inc's adjusted earnings per share data for the three months ended in Oct. 2016 was \$-0.110. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is \$0.00 for the trailing ten years ended in Oct. 2016.

Definition

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Guidewire Software Inc's Shiller P/E Ratio for today is calculated as

 Shiller P/E Ratio = Share Price / E10 = 52.36 / 0.00 =

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Guidewire Software Inc's E10 for the fiscal year that ended in Jul16 is calculated as:

For example, Guidewire Software Inc's adjusted earnings per share data for the three months ended in Oct. 2016 was:

 Adj_EPS = Earnigns per Share / CPI of Oct. 2016 (Change) * Current CPI (Oct. 2016) = -0.11 / 241.718 * 241.718 = -0.110

Current CPI (Oct. 2016) = 241.718.

Guidewire Software Inc does not have a history long enough to calculate E10. Therefore GuruFocus does not calculate it.

Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.

Be Aware

The Shiller P/E assumes that over the long term, businesses and profitability revert to their means. If a companys business model does not work in the future compared with the past, the Shiller P/E and P/S ratio will give false valuations.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Guidewire Software Inc Annual Data

 Jul09 Jul10 Jul11 Jul12 Jul13 Jul14 Jul15 Jul16 ShillerPE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Guidewire Software Inc Quarterly Data

 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 ShillerPE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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