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Is this Large Market Cap Stock target price reasonable for Guidewire Software, Inc. (NYSE:GWRE)?

The company in question is, Guidewire Software, Inc. (NYSE:GWRE) currently with a stock price of 58.27 (-0.19% today). The market cap for Guidewire Software, Inc. is 4258.82, and is in the sector Technology, and Business Software & Services industry. The target price for Guidewire Software, Inc. is 68.44. Currently Guidewire Software, Inc. is trading with a P/E of 313.87, and a forward P/E of 58.09. Average volume for Guidewire Software, Inc. is 382.96 and so far today it is 112779.

Performance in the last year for Guidewire Software, Inc. has been 11.45%. For EPS growth, Guidewire Software, Inc. has seen a growth of 48.50%, and is looking to grow in the next year to 32.59%. More long term stats show that EPS growth has been -3.20% over the last five years and could be 17.70% for the next five years. Guidewire Software, Inc. has seen sales growth quarter over quarter at 12.20%, with EPS growth quarter over quarter at 35.30%. The 20-day simple moving average is -4.38%, with the 200-day simple moving average coming to 1.58%.

Since the IPO date for Guidewire Software, Inc. on the 1/25/2012, Guidewire Software, Inc. has seen performance year to date to be -2.96%. With Guidewire Software, Inc. trading at 58.27, the dividend yield is *TBA, and the EPS is 0.19.

So could Guidewire Software, Inc., be undervalued? Well as said before P/E is 313.87. The PEG is 17.73, P/S is 10.03 and the P/B is at 5.42. The P/cash is 6.78, with P/free cash flow at 45.89.

Guidewire Software, Inc. ability to deal with debt shows that the current ratio is 5.9, and the quick ratio is 5.9. This is with long term debt/equity at 0, and total debt/equity at 0.

In terms of margins, Guidewire Software, Inc. has a gross margin of 64.20%, an operating margin of 3.90% and a profit margin of 3.50%.Payout ratio for Guidewire Software, Inc. is 0.00%. Return on assets come to 1.80% with return on investment coming to 1.40%.

Insider ownership for Guidewire Software, Inc., is at 1.40% and institutional ownership comes to *TBA. Outstanding shares are at 72.95. While shares float is 72.95. The float short is currently 3.56%, and short ratio is 6.79.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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