Clearwater Analytics HoldingsCWAN 81 Interest Coverage is 0.71 as of Mar. 2026, which is 51% below its 10-year median of 1.44. GuruFocus rates CWAN with a GF Score™ of 81/100 and a GF Value™ of $31.89 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,707 Software companies, Clearwater Analytics Holdings ranks worse than 58582.25% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Clearwater Analytics Holdings's
Operating Income
for the
three
months ended in Mar. 2026 was $9.0 Mil. Clearwater Analytics Holdings's Interest Expense for the
three
months ended in Mar. 2026 was $-12.6 Mil.
Clearwater Analytics Holdings's interest coverage for the quarter that ended in Mar. 2026 was 0.71.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Clearwater Analytics Holdings's Interest Coverage or its related term are showing as below:
CWAN's Interest Coverage is not ranked *
in the Software industry.
Industry Median: 24.65 * Ranked among companies with meaningful Interest Coverage only.
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Clearwater Analytics Holdings Interest Coverage Related Terms
Clearwater Analytics Holdings Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
CWAN vs CHYM, PCOR, TTAN: Interest Coverage Comparison
For the Software - Application subindustry, Clearwater Analytics Holdings's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Software Industry
For the Software industry and Technology sector, Clearwater Analytics Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Clearwater Analytics Holdings's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (CWAN) has a Interest Coverage of 0.71 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Clearwater Analytics Holdings and its competitors. This is 51% below median its historical median of 1.44. According to the industry distribution chart, Clearwater Analytics Holdings ranks #999999 out of 1707 companies in the Software industry.
Is Clearwater Analytics Holdings' Interest Coverage too high?
Clearwater Analytics Holdings' current Interest Coverage of 0.71 is 51% below median its 10-year median of 1.44. The Software industry median Interest Coverage is 24.65. Clearwater Analytics Holdings' value of 0.71 is 97.1% below this industry median. Based on the distribution chart, Clearwater Analytics Holdings ranks #999999 out of 1707 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Clearwater Analytics Holdings has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Clearwater Analytics Holdings' Interest Coverage compare to CHYM and PCOR?
According to the Software industry distribution chart, Clearwater Analytics Holdings ranks #999999 out of 1707 companies for Interest Coverage. This places Clearwater Analytics Holdings in the lower half of its industry. The industry median Interest Coverage is 24.65. Clearwater Analytics Holdings' value of 0.71 is 97.1% below this benchmark. While the company's 10-year median is 1.44 vs. the industry median of 24.65, Clearwater Analytics Holdings has consistently been below 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 Interest Coverage for a Software company?
The median Interest Coverage among Software companies is 24.65, based on 1,707 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Clearwater Analytics Holdings's current Interest Coverage of 0.71 is 97.1% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Clearwater Analytics Holdings and its competitors. For the Software industry, the median Interest Coverage is 24.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Clearwater Analytics Holdings's current Interest Coverage is 0.71, which is 51% below median its own 10-year median of 1.44. 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 $31.89, compared to a current price of $24.56 — trading 23% below its estimated fair value. The current Interest Coverage is 0.71, which is 51% below median its 10-year median of 1.44 and 97.1% below the Software industry median of 24.65. Clearwater Analytics Holdings' overall GF Score™ is 81/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Clearwater Analytics Holdings (CWAN), the current Interest Coverage is 0.71 as of Mar. 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% below its estimated GF Value™ of $31.89.
GuruFocus considers Clearwater Analytics Holdings to be Modestly Undervalued.
Key valuation signals for CWAN:
Interest Coverage: 0.71 (51% below median its 10-year median of 1.44)
GF Value™: $31.89 vs. price of $24.56 (23% below fair value)
Industry Position: 97.1% below the Software median (#999999 of 1707)
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.
81GF Score
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