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Clearwater Analytics Holdings (NYSE:CWAN) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Clearwater Analytics Holdings Forward PE Ratio Related Terms
Clearwater Analytics Holdings Forward PE Ratio Historical Data
* 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.
Clearwater Analytics Holdings Forward PE Ratio Chart
Clearwater Analytics Holdings Annual Data
Trend
2021-12
2022-12
2023-12
2024-12
2025-12
Forward PE Ratio
88.50
66.23
52.63
52.55
35.02
Clearwater Analytics Holdings Quarterly Data
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
88.50
97.09
57.14
64.52
66.23
59.17
54.64
52.36
52.63
42.19
43.10
48.54
52.55
49.50
39.15
24.88
35.02
33.56
CWAN vs IDCC, CHYM, TTAN: Forward PE Ratio Comparison
For the Software - Application subindustry, Clearwater Analytics Holdings's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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.
Clearwater Analytics Holdings Forward PE Ratio vs Software Industry
For the Software industry and Technology sector, Clearwater Analytics Holdings's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Clearwater Analytics Holdings's Forward PE Ratio falls into.
Clearwater Analytics Holdings Forward PE Ratio Calculation
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Clearwater Analytics Holdings (CWAN) has a Forward PE Ratio of 35.29 as of Jul. 27, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Clearwater Analytics Holdings and its competitors. According to the industry distribution chart, Clearwater Analytics Holdings ranks #896 out of 1172 companies in the Software industry, placing it in the top 76.5%.
Is Clearwater Analytics Holdings' Forward PE Ratio too high?
Clearwater Analytics Holdings' current Forward PE Ratio is 35.29. The Software industry median Forward PE Ratio is 18.42. Clearwater Analytics Holdings' value of 35.29 is 91.6% above this industry median. Based on the distribution chart, Clearwater Analytics Holdings ranks #896 out of 1172 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Clearwater Analytics Holdings has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Clearwater Analytics Holdings' Forward PE Ratio compare to IDCC and CHYM?
According to the Software industry distribution chart, Clearwater Analytics Holdings ranks #896 out of 1172 companies for Forward PE Ratio. This places Clearwater Analytics Holdings in the lower half of its industry. The industry median Forward PE Ratio is 18.42. Clearwater Analytics Holdings' value of 35.29 is 91.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Software company?
The median Forward PE Ratio among Software companies is 18.42, based on 1,172 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Clearwater Analytics Holdings's current Forward PE Ratio of 35.29 is 91.6% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Clearwater Analytics Holdings and its competitors. For the Software industry, the median Forward PE Ratio is 18.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Clearwater Analytics Holdings's current Forward PE Ratio is 35.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Clearwater Analytics Holdings stock overvalued right now?
Based on GuruFocus' analysis, Clearwater Analytics Holdings (CWAN) is currently considered Modestly Undervalued. The stock's GF Value™ is $32.27, compared to a current price of $24.56 — trading 23.9% below its estimated fair value. The current Forward PE Ratio is 35.29 and 91.6% above the Software industry median of 18.42. Clearwater Analytics Holdings' overall GF Score™ is 60/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Clearwater Analytics Holdings (CWAN), the current Forward PE Ratio is 35.29 as of Jul. 27, 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 Clearwater Analytics Holdings (CWAN) Overvalued in 2026?
Based on GuruFocus' analysis, Clearwater Analytics Holdings stock appears to be undervalued.
The current stock price of $24.56 is trading 23.9% below its estimated GF Value™ of $32.27.
GuruFocus considers Clearwater Analytics Holdings to be Modestly Undervalued.
Key valuation signals for CWAN:
Forward PE Ratio: 35.29
GF Value™: $32.27 vs. price of $24.56 (23.9% below fair value)
Industry Position: 91.6% above the Software median (#896 of 1172)
No single metric tells the full story. See the CWAN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Clearwater Analytics Holdings Business Description
Clearwater Analytics describes its mission as aiming to be the world's most trusted and comprehensive technology platform for the entire investment cycle. Clearwater has historically focused on back-office functions such as investment accounting, but with acquisitions such Enfusion, Beacon, and Bistro, the firm has broadened its focus with front-office and middle-office capabilities. Clearwater primarily serves insurance companies, asset managers, hedge funds, and corporate treasuries. Pro forma for Enfusion, about 76% of Clearwater's revenue is generated in the US.
60GF Score
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