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GuruFocus has detected 4 Warning Signs with Guidewire Software Inc $GWRE.
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Guidewire Software Inc (NYSE:GWRE)
EV-to-EBIT
521.55 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Guidewire Software Inc's enterprise value is $3,964.3 Mil. Guidewire Software Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was $7.6 Mil. Therefore, Guidewire Software Inc's EV/EBIT ratio for today is 521.55.

GWRE' s EV-to-EBIT Range Over the Past 10 Years
Min: 21.9   Max: 541.8
Current: 521.55

21.9
541.8

During the past 8 years, the highest EV/EBIT Ratio of Guidewire Software Inc was 541.80. The lowest was 21.90. And the median was 146.80.

GWRE's EV-to-EBIT is ranked lower than
98% of the 1770 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 17.68 vs. GWRE: 521.55 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Guidewire Software Inc's enterprise value for the quarter that ended in Jan. 2017 was $3,287.0 Mil. Guidewire Software Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was $7.6 Mil. Guidewire Software Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2017 was 0.23%.


Definition

Guidewire Software Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=3964.281/7.601
=521.55

Guidewire Software Inc's current Enterprise Value is $3,964.3 Mil.
Guidewire Software Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was -5.777 (Apr. 2016 ) + 23.475 (Jul. 2016 ) + -18.302 (Oct. 2016 ) + 8.205 (Jan. 2017 ) = $7.6 Mil.

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


Explanation

This is a more accurate valuation of companies' operation because it consider the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt).

Guidewire Software Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2017 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jan. 2017 )=EBIT (TTM)/Enterprise Value (Q: Jan. 2017 )
=7.601/3286.9985
=0.23 %

Guidewire Software Inc's Enterprise Value for the quarter that ended in Jan. 2017 was $3,287.0 Mil.
Guidewire Software Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was -5.777 (Apr. 2016 ) + 23.475 (Jul. 2016 ) + -18.302 (Oct. 2016 ) + 8.205 (Jan. 2017 ) = $7.6 Mil.

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


Related Terms

Enterprise Value, Earnings Yield (Joel Greenblatt), Earnings Before Interest and Taxes (EBIT)


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

Jul09Jul10Jul11Jul12Jul13Jul14Jul15Jul16
ev2ebit 0.000.000.000.000.0040.7479.94127.75219.58234.93

Guidewire Software Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
ev2ebit 108.54113.06153.16219.58324.60217.23215.87234.93520.26432.44
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