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Guidewire Software Inc (NYSE:GWRE)
Price-to-Free-Cash-Flow Ratio
42.06 (As of Today)

As of today, Guidewire Software Inc's share price is $52.36. Guidewire Software Inc's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Oct. 2016 was $1.25. Hence, Guidewire Software Inc's Price-to-Free-Cash-Flow Ratio for today is 42.06.

GWRE' s Price-to-Free-Cash-Flow ratio Range Over the Past 10 Years
Min: 26.18   Max: 127.73
Current: 42.06

26.18
127.73

During the past 8 years, Guidewire Software Inc's highest Price-to-Free-Cash-Flow Ratio was 127.73. The lowest was 26.18. And the median was 54.74.

GWRE's Price-to-Free-Cash-Flow ratio is ranked lower than
74% of the 702 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 25.00 vs. GWRE: 42.06 )

Guidewire Software Inc's Free Cash Flow per Share for the three months ended in Oct. 2016 was $-0.21. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Oct. 2016 was $1.25.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Guidewire Software Inc was 77.10% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 49.20% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 10.90% per year.

During the past 8 years, Guidewire Software Inc's highest 3-Year average Free Cash Flow per Share Growth Rate was 49.20% per year. The lowest was 0.00% per year. And the median was -10.10% per year.


Definition

Guidewire Software Inc's Price-to-Free-Cash-Flow ratio for today is calculated as

Price-to-Free-Cash-Flow Ratio=Share Price/Free Cash Flow per Share (TTM)
=52.36/1.245
=42.06

Guidewire Software Inc's Share Price of today is $52.36.
Guidewire Software Inc's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Oct. 2016 was 0.505 (Jan. 2016 ) + 0.308 (Apr. 2016 ) + 0.642 (Jul. 2016 ) + -0.21 (Oct. 2016 ) = $1.25.

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

It can also be calculated from the numbers for the whole company:

Price-to-Free-Cash-Flow Ratio=Market Cap/Free Cash Flow

Explanation

Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.

In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.


Be Aware

In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management’s decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.


Related Terms

Free Cash Flow, Free Cash Flow per Share, P/S Ratio, P/B Ratio, P/E Ratio


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
pfcf 0.000.000.000.000.0093.31114.8641.5073.8148.79

Guidewire Software Inc Quarterly Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
pfcf 41.5043.5451.1247.3073.8182.8349.6853.8548.7946.14
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