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Guidewire Software (Guidewire Software) Earnings Yield (Joel Greenblatt) %

: -0.74% (As of Jan. 2024)
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Guidewire Software's Enterprise Value for the quarter that ended in Jan. 2024 was $8,853.2 Mil. Guidewire Software's EBIT for the trailing twelve months (TTM) ended in Jan. 2024 was $-65.4 Mil. Guidewire Software's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2024 was -0.74%.

The historical rank and industry rank for Guidewire Software's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

GWRE' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: -5.44   Med: 0.3   Max: 1.2
Current: -0.75

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Guidewire Software was 1.20%. The lowest was -5.44%. And the median was 0.30%.

GWRE's Earnings Yield (Joel Greenblatt) % is ranked worse than
60.7% of 2840 companies
in the Software industry
Industry Median: 1.185 vs GWRE: -0.75

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Guidewire Software's Forward Rate of Return (Yacktman) % for the quarter that ended in Jan. 2024 was 0.00%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Guidewire Software Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Guidewire Software's Earnings Yield (Joel Greenblatt) % 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 Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Earnings Yield (Joel Greenblatt) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.39 -0.07 -0.96 -3.48 -1.94

Guidewire Software Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Earnings Yield (Joel Greenblatt) % 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 Premium Member Only Premium Member Only Premium Member Only -3.28 -2.96 -1.94 -1.13 -0.74

Competitive Comparison

For the Software - Application subindustry, Guidewire Software's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % Distribution

For the Software industry and Technology sector, Guidewire Software's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Guidewire Software's Earnings Yield (Joel Greenblatt) % falls into.



Guidewire Software Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

Guidewire Softwares Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Jul. 2023 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=-127.378/6557.691174
=-1.94 %

Guidewire Software's EBIT for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $-65.4 Mil.



Guidewire Software  (NYSE:GWRE) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


Guidewire Software Earnings Yield (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of Guidewire Software's Earnings Yield (Joel Greenblatt) % 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