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Guidewire Software (Guidewire Software) Cyclically Adjusted PB Ratio : 6.55 (As of Apr. 27, 2024)


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What is Guidewire Software Cyclically Adjusted PB Ratio?

As of today (2024-04-27), Guidewire Software's current share price is $113.55. Guidewire Software's Cyclically Adjusted Book per Share for the quarter that ended in Jan. 2024 was $17.34. Guidewire Software's Cyclically Adjusted PB Ratio for today is 6.55.

The historical rank and industry rank for Guidewire Software's Cyclically Adjusted PB Ratio or its related term are showing as below:

GWRE' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 3.34   Med: 7.09   Max: 12.74
Current: 6.46

During the past years, Guidewire Software's highest Cyclically Adjusted PB Ratio was 12.74. The lowest was 3.34. And the median was 7.09.

GWRE's Cyclically Adjusted PB Ratio is ranked worse than
82.02% of 1285 companies
in the Software industry
Industry Median: 2.49 vs GWRE: 6.46

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Guidewire Software's adjusted book value per share data for the three months ended in Jan. 2024 was $15.259. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is $17.34 for the trailing ten years ended in Jan. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Guidewire Software Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Guidewire Software's Cyclically Adjusted PB 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.

* Premium members only.

Guidewire Software Cyclically Adjusted PB Ratio Chart

Guidewire Software Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 10.69 8.83 4.97 4.95

Guidewire Software Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Cyclically Adjusted PB Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.50 4.54 4.95 5.21 6.44

Competitive Comparison of Guidewire Software's Cyclically Adjusted PB Ratio

For the Software - Application subindustry, Guidewire Software's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB 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 Cyclically Adjusted PB Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Guidewire Software's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Guidewire Software's Cyclically Adjusted PB Ratio falls into.



Guidewire Software Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

Guidewire Software's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=113.55/17.34
=6.55

* 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's Cyclically Adjusted Book per Share for the quarter that ended in Jan. 2024 is calculated as:

For example, Guidewire Software's adjusted Book Value per Share data for the three months ended in Jan. 2024 was:

Adj_Book=Book Value per Share/CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=15.259/129.4194*129.4194
=15.259

Current CPI (Jan. 2024) = 129.4194.

Guidewire Software Quarterly Data

Book Value per Share CPI Adj_Book
201404 9.262 100.023 11.984
201407 9.419 100.520 12.127
201410 9.359 100.176 12.091
201501 9.394 98.604 12.330
201504 9.374 99.824 12.153
201507 9.709 100.691 12.479
201510 9.842 100.346 12.693
201601 10.019 99.957 12.972
201604 10.220 100.947 13.103
201607 10.733 101.524 13.682
201610 10.804 101.988 13.710
201701 11.058 102.456 13.968
201704 11.212 103.167 14.065
201707 11.846 103.278 14.844
201710 13.115 104.070 16.310
201801 14.072 104.578 17.415
201804 16.445 105.708 20.134
201807 17.536 106.324 21.345
201810 18.365 106.695 22.276
201901 18.606 106.200 22.674
201904 18.657 107.818 22.395
201907 19.165 108.250 22.913
201910 19.201 108.577 22.887
202001 19.217 108.841 22.850
202004 19.070 108.173 22.816
202007 19.851 109.318 23.501
202010 19.809 109.861 23.336
202101 19.632 110.364 23.022
202104 18.690 112.673 21.468
202107 18.570 115.183 20.865
202110 17.987 116.696 19.948
202201 17.720 118.619 19.333
202204 17.296 121.978 18.351
202207 17.264 125.002 17.874
202210 14.475 125.734 14.899
202301 14.842 126.223 15.218
202304 14.626 127.992 14.789
202307 14.728 128.974 14.779
202310 14.716 129.810 14.672
202401 15.259 129.419 15.259

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Guidewire Software  (NYSE:GWRE) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


Guidewire Software Cyclically Adjusted PB Ratio Related Terms

Thank you for viewing the detailed overview of Guidewire Software's Cyclically Adjusted PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Guidewire Software (Guidewire Software) Business Description

Traded in Other Exchanges
Address
970 Park Pl., Suite 200, San Mateo, CA, USA, 94403
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.
Executives
Jeffrey Elliott Cooper officer: Interim CFO C/O GUIDEWIRE SOFTWARE, INC., 970 PARK PL, SUITE 200, SAN MATEO CA 94403
James Winston King officer: Chief Admin Officer, Gen Couns C/O GUIDEWIRE SOFTWARE, INC., 970 PARK PL, SUITE 200, SAN MATEO CA 94403
Priscilla Hung officer: PRESIDENT & COO C/O GUIDEWIRE SOFTWARE, INC., 970 PARK PL, SUITE 200, SAN MATEO CA 94403
John P Mullen officer: President & CRO C/O GUIDEWIRE SOFTWARE, INC., 970 PARK PL, SUITE 200, SAN MATEO CA 94403
Michael George Rosenbaum director, officer: Chief Executive Officer C/O GUIDEWIRE SOFTWARE, INC., 970 PARK PL, SUITE 200, SAN MATEO CA 94403
David S Bauer director C/O GUIDEWIRE SOFTWARE, INC., 2850 S DELAWARE STREET, S-400, SAN MATEO CA 94403
Brown Andrew William Fraser director C/O GUIDEWIRE SOFTWARE, INC., 970 PARK PL, SUITE 200, SAN MATEO CA 94403
Marcus Ryu director 2850 S DELAWARE STREET, SUITE 400, SAN MATEO CA 94403
Michael C Keller director C/O GUIDEWIRE SOFTWARE, INC., 2850 S. DELAWARE ST. STE 400, SAN MATEO CA 94403
Michael Polelle officer: Chief Delivery Officer 2850 S DELAWARE STREET, SUITE 400, SAN MATEO CA 94403
Rajani Ramanathan director C/O GUIDEWIRE SOFTWARE, INC., 2850 S DELAWARE STREET, S-400, SAN MATEO CA 94403
Odowd Frank E Jr officer: Chief Sales Officer GUIDEWIRE SOFTWARE, INC., 2850 S. DELAWARE ST. STE 400, SAN MATEO CA 94403
Paul Lavin director C/O GUIDEWIRE SOFTWARE, INC., 2850 S. DELAWARE STREET, SUITE 400, SAN MATEO CA 94403
Steven P. Sherry officer: Chief Sales Officer GUIDEWIRE SOFTWARE, INC., 2850 S. DELAWARE STREET, SUITE 400, SAN MATEO CA 94403
Margaret Dillon director C/O GUIDEWIRE SOFTWARE, INC., 2850 DELAWARE ST. STE 400, SAN MATEO CA 94403