Guidewire SoftwareLTS:0J1G +1.20%68 FCF Yield % is 2.79 as of Jul. 07, 2026, which is 151% above its 10-year median of 1.11. GuruFocus rates LTS:0J1G with a GF Score™ of 68/100 and a GF Value™ of $202.83 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,862 Software companies, Guidewire Software ranks better than 58.7% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Guidewire Software FCF Yield % Related Terms
Guidewire Software FCF Yield % Historical Data
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The historical data trend for Guidewire Software's FCF Yield % 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.
LTS:0J1G vs FIG, FROG, HUBS: FCF Yield % Comparison
For the Software - Application subindustry, Guidewire Software's FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Software Industry
For the Software industry and Technology sector, Guidewire Software's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Guidewire Software's FCF Yield % falls into.
* 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 (LTS:0J1G) has a FCF Yield % of 2.79 as of Jul. 07, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Guidewire Software and its competitors. This is 151% above median its historical median of 1.11. According to the industry distribution chart, Guidewire Software ranks #1182 out of 2862 companies in the Software industry, placing it in the top 41.3%.
Is Guidewire Software's FCF Yield % too high?
Guidewire Software's current FCF Yield % of 2.79 is 151% above median its 10-year median of 1.11. The Software industry median FCF Yield % is 0.94. Guidewire Software's value of 2.79 is 196.8% above this industry median. Based on the distribution chart, Guidewire Software ranks #1182 out of 2862 companies in the Software industry, which is above the industry midpoint. Overall, Guidewire Software has a GF Score™ of 68/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Guidewire Software's FCF Yield % compare to FIG and FROG?
According to the Software industry distribution chart, Guidewire Software ranks #1182 out of 2862 companies for FCF Yield %. This puts Guidewire Software in the upper half of its industry. The industry median FCF Yield % is 0.94. Guidewire Software's value of 2.79 is 196.8% above this benchmark. While the company's 10-year median is 1.11 vs. the industry median of 0.94, Guidewire Software has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Yield % for a Software company?
The median FCF Yield % among Software companies is 0.94, based on 2,862 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Guidewire Software's current FCF Yield % of 2.79 is 196.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Guidewire Software and its competitors. For the Software industry, the median FCF Yield % is 0.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guidewire Software's current FCF Yield % is 2.79, which is 151% above median its own 10-year median of 1.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guidewire Software stock overvalued right now?
Based on GuruFocus' analysis, Guidewire Software (LTS:0J1G) is currently considered Significantly Undervalued. The stock's GF Value™ is $202.83, compared to a current price of $136.91 — trading 32.5% below its estimated fair value. The current FCF Yield % is 2.79, which is 151% above median its 10-year median of 1.11 and 196.8% above the Software industry median of 0.94. Guidewire Software's overall GF Score™ is 68/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Guidewire Software (LTS:0J1G), the current FCF Yield % is 2.79 as of Jul. 07, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Guidewire Software (LTS:0J1G) Overvalued in 2026?
Based on GuruFocus' analysis, Guidewire Software stock appears to be undervalued.
The current stock price of $136.91 is trading 32.5% below its estimated GF Value™ of $202.83.
GuruFocus considers Guidewire Software to be Significantly Undervalued.
Key valuation signals for LTS:0J1G:
FCF Yield %: 2.79 (151% above median its 10-year median of 1.11)
GF Value™: $202.83 vs. price of $136.91 (32.5% below fair value)
Industry Position: 196.8% above the Software median (#1182 of 2862)
No single metric tells the full story. See the LTS:0J1G stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guidewire Software provides cloud-based software solutions for property and casualty insurers. The flagship product, InsuranceSuite is a 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 midmarket offering, as well as a variety of other add-on applications and services.
68GF Score
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