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Guidewire SoftwareMEX:GWRE 76 Altman Z-Score is 6.45 as of Jul. 15, 2026, which is 27% below its 10-year median of 8.86. GuruFocus rates MEX:GWRE with a GF Score™ of 76/100 and a GF Value™ of MXN4,069.78 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,768 Software companies, Guidewire Software ranks better than 76.66% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 6.41 is strong.
Guidewire Software has a Altman Z-Score of 6.45, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Guidewire Software's Altman Z-Score or its related term are showing as below:
MEX:GWRE'
s Altman Z-Score Range Over the Past 10 Years
Min: 3.95 Med: 8.86 Max: 24.47
Current: 6.41
During the past 13 years, Guidewire Software's highest Altman Z-Score was 24.47. The lowest was 3.95. And the median was 8.86.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Guidewire Software Altman Z-Score Related Terms
Guidewire Software Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Guidewire Software's Altman Z-Score 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.
MEX:GWRE vs FIG, FROG, HUBS: Altman Z-Score Comparison
For the Software - Application subindustry, Guidewire Software's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Software Industry
For the Software industry and Technology sector, Guidewire Software's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Guidewire Software's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Guidewire Software's Altman Z-Score for today is calculated with this formula:
Z
=
1.2
*
X1
+
1.4
*
X2
+
3.3
*
X3
+
0.6
*
X4
+
1.0
*
X5
=
1.2
*
0.2833
+
1.4
*
-0.3335
+
3.3
*
0.0699
+
0.6
*
9.62
+
1.0
*
0.5771
=
6.45
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Guidewire Software (MEX:GWRE) has a Altman Z-Score of 6.45 as of Jul. 15, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Guidewire Software and its competitors. This is 27% below median its historical median of 8.86. Over the past decade, Guidewire Software's Altman Z-Score has ranged from 3.95 to 24.47. According to the industry distribution chart, Guidewire Software ranks #646 out of 2768 companies in the Software industry, placing it in the top 23.3%.
Is Guidewire Software's Altman Z-Score too high?
Guidewire Software's current Altman Z-Score of 6.45 is 27% below median its 10-year median of 8.86. Over the past 10 years, this metric has ranged from a low of 3.95 to a high of 24.47. The Software industry median Altman Z-Score is 3.16. Guidewire Software's value of 6.45 is 104.1% above this industry median. Based on the distribution chart, Guidewire Software ranks #646 out of 2768 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Guidewire Software has a GF Score™ of 76/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Guidewire Software's Altman Z-Score compare to FIG and FROG?
According to the Software industry distribution chart, Guidewire Software ranks #646 out of 2768 companies for Altman Z-Score. This places Guidewire Software in the top 23% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 3.16. Guidewire Software's value of 6.45 is 104.1% above this benchmark. Historically, Guidewire Software's own Altman Z-Score has ranged from 3.95 to 24.47 over the past decade. While the company's 10-year median is 8.86 vs. the industry median of 3.16, 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 Altman Z-Score for a Software company?
The median Altman Z-Score among Software companies is 3.16, based on 2,768 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Guidewire Software's current Altman Z-Score of 6.45 is 104.1% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Guidewire Software and its competitors. For the Software industry, the median Altman Z-Score is 3.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guidewire Software's current Altman Z-Score is 6.45, which is 27% below median its own 10-year median of 8.86. 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 (MEX:GWRE) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN4,069.78, compared to a current price of MXN1,865.00 — trading 54.2% below its estimated fair value. The current Altman Z-Score is 6.45, which is 27% below median its 10-year median of 8.86 and 104.1% above the Software industry median of 3.16. Guidewire Software's overall GF Score™ is 76/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Guidewire Software (MEX:GWRE), the current Altman Z-Score is 6.45 as of Jul. 15, 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 (MEX:GWRE) Overvalued in 2026?
Based on GuruFocus' analysis, Guidewire Software stock appears to be undervalued.
The current stock price of MXN1,865.00 is trading 54.2% below its estimated GF Value™ of MXN4,069.78.
GuruFocus considers Guidewire Software to be Significantly Undervalued.
Key valuation signals for MEX:GWRE:
Altman Z-Score: 6.45 (27% below median its 10-year median of 8.86)
GF Value™: MXN4,069.78 vs. price of MXN1,865.00 (54.2% below fair value)
Industry Position: 104.1% above the Software median (#646 of 2768)
No single metric tells the full story. See the MEX:GWRE 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.
76GF Score
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