PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Guidewire Software's PE Ratio without NRI is 143.68. Guidewire Software's 5-Year EBITDA growth rate is 0.00%. Therefore, Guidewire Software's PEG Ratio for today is N/A.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Guidewire Software's PEG Ratio or its related term are showing as below:
During the past 13 years, Guidewire Software's highest PEG Ratio was 35.99. The lowest was 2.66. And the median was 5.60.
GWRE's PEG Ratio is not ranked *
in the Software industry.
Industry Median: 1.59 * Ranked among companies with meaningful PEG Ratio only.
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Guidewire Software PEG Ratio Historical Data
The historical data trend for Guidewire Software's PEG Ratio 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.
Competitive Comparison of Guidewire Software's PEG Ratio
For the Software - Application subindustry, Guidewire Software's PEG Ratio, along with its competitors' market caps and PEG 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.
Guidewire Software's PEG Ratio Distribution in the Software Industry
For the Software industry and Technology sector, Guidewire Software's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Guidewire Software's PEG Ratio falls into.
Guidewire Software PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year EBITDA growth rate.
Guidewire Software's PEG Ratio for today is calculated as
* 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: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Guidewire Software (NYSE:GWRE) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Guidewire Software PEG Ratio Related Terms
Thank you for viewing the detailed overview of Guidewire Software's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Guidewire Software (Guidewire Software) Business Description
Guidewire Software provides software solutions for property and casualty insurers. Flagship product InsuranceSuite is an on-premises 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 cloud-based offering, as well as a variety of other add-on applications.
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