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Guidewire Software (Guidewire Software) Cyclically Adjusted Price-to-FCF : 110.24 (As of Apr. 27, 2024)


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What is Guidewire Software Cyclically Adjusted Price-to-FCF?

As of today (2024-04-27), Guidewire Software's current share price is $113.55. Guidewire Software's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 was $1.03. Guidewire Software's Cyclically Adjusted Price-to-FCF for today is 110.24.

The historical rank and industry rank for Guidewire Software's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

GWRE' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 52.5   Med: 99.73   Max: 127.42
Current: 108.98

During the past years, Guidewire Software's highest Cyclically Adjusted Price-to-FCF was 127.42. The lowest was 52.50. And the median was 99.73.

GWRE's Cyclically Adjusted Price-to-FCF is ranked worse than
85.37% of 670 companies
in the Software industry
Industry Median: 28.305 vs GWRE: 108.98

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Guidewire Software's adjusted free cash flow per share data for the three months ended in Jan. 2024 was $0.767. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $1.03 for the trailing ten years ended in Jan. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Guidewire Software Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Guidewire Software's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Guidewire Software Cyclically Adjusted Price-to-FCF Chart

Guidewire Software Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 109.53 107.07 75.23 81.51

Guidewire Software Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 78.28 86.94 81.51 91.15 108.69

Competitive Comparison of Guidewire Software's Cyclically Adjusted Price-to-FCF

For the Software - Application subindustry, Guidewire Software's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Guidewire Software's Cyclically Adjusted Price-to-FCF Distribution in the Software Industry

For the Software industry and Technology sector, Guidewire Software's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Guidewire Software's Cyclically Adjusted Price-to-FCF falls into.



Guidewire Software Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Guidewire Software's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=113.55/1.03
=110.24

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Guidewire Software's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 is calculated as:

For example, Guidewire Software's adjusted Free Cash Flow per Share data for the three months ended in Jan. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=0.767/129.4194*129.4194
=0.767

Current CPI (Jan. 2024) = 129.4194.

Guidewire Software Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201404 0.282 100.023 0.365
201407 0.585 100.520 0.753
201410 -0.098 100.176 -0.127
201501 0.100 98.604 0.131
201504 0.358 99.824 0.464
201507 0.399 100.691 0.513
201510 -0.195 100.346 -0.251
201601 0.505 99.957 0.654
201604 0.308 100.947 0.395
201607 0.594 101.524 0.757
201610 -0.210 101.988 -0.266
201701 0.567 102.456 0.716
201704 0.282 103.167 0.354
201707 1.050 103.278 1.316
201710 -0.448 104.070 -0.557
201801 0.582 104.578 0.720
201804 0.241 105.708 0.295
201807 1.293 106.324 1.574
201810 -0.373 106.695 -0.452
201901 0.068 106.200 0.083
201904 0.090 107.818 0.108
201907 0.978 108.250 1.169
201910 -0.353 108.577 -0.421
202001 0.205 108.841 0.244
202004 -0.051 108.173 -0.061
202007 1.245 109.318 1.474
202010 -0.242 109.861 -0.285
202101 0.088 110.364 0.103
202104 -0.048 112.673 -0.055
202107 1.196 115.183 1.344
202110 -1.372 116.696 -1.522
202201 -0.109 118.619 -0.119
202204 -0.185 121.978 -0.196
202207 0.941 125.002 0.974
202210 -1.101 125.734 -1.133
202301 -0.031 126.223 -0.032
202304 -0.636 127.992 -0.643
202307 2.053 128.974 2.060
202310 -0.940 129.810 -0.937
202401 0.767 129.419 0.767

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Guidewire Software  (NYSE:GWRE) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Guidewire Software Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Guidewire Software's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Guidewire Software (Guidewire Software) Business Description

Industry
Traded in Other Exchanges
Address
970 Park Pl., Suite 200, San Mateo, CA, USA, 94403
Guidewire Software provides software solutions for property and casualty insurers. Flagship product InsuranceSuite is an on-premises system of record and comprises ClaimCenter, a claims management system; PolicyCenter, a policy management system including policy definitions, quotas, issuance, maintenance, and renewal; and BillingCenter, for billing management, payment plans, and agent commissions. The company also offers InsuranceNow, a cloud-based offering, as well as a variety of other add-on applications.
Executives
Jeffrey Elliott Cooper officer: Interim CFO C/O GUIDEWIRE SOFTWARE, INC., 970 PARK PL, SUITE 200, SAN MATEO CA 94403
James Winston King officer: Chief Admin Officer, Gen Couns C/O GUIDEWIRE SOFTWARE, INC., 970 PARK PL, SUITE 200, SAN MATEO CA 94403
Priscilla Hung officer: PRESIDENT & COO C/O GUIDEWIRE SOFTWARE, INC., 970 PARK PL, SUITE 200, SAN MATEO CA 94403
John P Mullen officer: President & CRO C/O GUIDEWIRE SOFTWARE, INC., 970 PARK PL, SUITE 200, SAN MATEO CA 94403
Michael George Rosenbaum director, officer: Chief Executive Officer C/O GUIDEWIRE SOFTWARE, INC., 970 PARK PL, SUITE 200, SAN MATEO CA 94403
David S Bauer director C/O GUIDEWIRE SOFTWARE, INC., 2850 S DELAWARE STREET, S-400, SAN MATEO CA 94403
Brown Andrew William Fraser director C/O GUIDEWIRE SOFTWARE, INC., 970 PARK PL, SUITE 200, SAN MATEO CA 94403
Marcus Ryu director 2850 S DELAWARE STREET, SUITE 400, SAN MATEO CA 94403
Michael C Keller director C/O GUIDEWIRE SOFTWARE, INC., 2850 S. DELAWARE ST. STE 400, SAN MATEO CA 94403
Michael Polelle officer: Chief Delivery Officer 2850 S DELAWARE STREET, SUITE 400, SAN MATEO CA 94403
Rajani Ramanathan director C/O GUIDEWIRE SOFTWARE, INC., 2850 S DELAWARE STREET, S-400, SAN MATEO CA 94403
Odowd Frank E Jr officer: Chief Sales Officer GUIDEWIRE SOFTWARE, INC., 2850 S. DELAWARE ST. STE 400, SAN MATEO CA 94403
Paul Lavin director C/O GUIDEWIRE SOFTWARE, INC., 2850 S. DELAWARE STREET, SUITE 400, SAN MATEO CA 94403
Steven P. Sherry officer: Chief Sales Officer GUIDEWIRE SOFTWARE, INC., 2850 S. DELAWARE STREET, SUITE 400, SAN MATEO CA 94403
Margaret Dillon director C/O GUIDEWIRE SOFTWARE, INC., 2850 DELAWARE ST. STE 400, SAN MATEO CA 94403