Is Guidewire Software, Inc. overvalued or undervalued?

As of 4 September 2025, the valuation grade for Guidewire Software, Inc. moved from expensive to fair. The company appears fairly valued based on its current metrics. Key ratios include a P/E ratio of 241, a Price to Book Value of 15.80, and an EV to EBITDA of 329.55. In comparison, Block, Inc. has a more attractive P/E of 12.44, while Broadridge Financial Solutions, Inc. maintains a fair P/E of 46.07.
In terms of stock performance, Guidewire has outperformed the S&P 500 year-to-date with a return of 46.30% compared to the S&P's 12.22%, although it has lagged behind in the past week and over the last ten years. Overall, the valuation metrics suggest that Guidewire is currently fairly valued relative to its peers.