The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Guidewire Software Pretax Margin % Related Terms
Guidewire Software Pretax Margin % Historical Data
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The historical data trend for Guidewire Software's Pretax Margin % 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: Pretax Margin % Comparison
For the Software - Application subindustry, Guidewire Software's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Guidewire Software's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Guidewire Software's Pretax Margin % 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 Pretax Margin % of 5.30% as of Apr. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Guidewire Software and its competitors. According to the industry distribution chart, Guidewire Software ranks #782 out of 2818 companies in the Software industry, placing it in the top 27.8%.
Is Guidewire Software's Pretax Margin % too high?
Guidewire Software's current Pretax Margin % is 5.30%. The Software industry median Pretax Margin % is 3.60. Guidewire Software's value of 5.30% is 47.4% above this industry median. Based on the distribution chart, Guidewire Software ranks #782 out of 2818 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 Pretax Margin % compare to FIG and FROG?
According to the Software industry distribution chart, Guidewire Software ranks #782 out of 2818 companies for Pretax Margin %. This puts Guidewire Software in the upper half of its industry. The industry median Pretax Margin % is 3.60. Guidewire Software's value of 5.30% is 47.4% 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 Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.60, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Guidewire Software's current Pretax Margin % of 5.30% is 47.4% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Guidewire Software and its competitors. For the Software industry, the median Pretax Margin % is 3.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guidewire Software's current Pretax Margin % is 5.30%. 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 $203.72, compared to a current price of $135.95 — trading 33.3% below its estimated fair value. The current Pretax Margin % is 5.30% and 47.4% above the Software industry median of 3.60. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Guidewire Software (LTS:0J1G), the current Pretax Margin % is 5.30% as of Apr. 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 $135.95 is trading 33.3% below its estimated GF Value™ of $203.72.
GuruFocus considers Guidewire Software to be Significantly Undervalued.
Key valuation signals for LTS:0J1G:
Pretax Margin %: 5.30%
GF Value™: $203.72 vs. price of $135.95 (33.3% below fair value)
Industry Position: 47.4% above the Software median (#782 of 2818)
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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