GWRENEUTRAL

GWRE P/E Ratio Analysis

64.5x

Updated 169h ago·SEC filings & market data

Key Takeaway

The price-to-earnings (P/E) ratio of 64.5x means investors are paying $64.50 for every $1 of the company’s annual earnings, implying high expectations for future profit growth.

Sector Performance

90th percentile

GWRE

64.5x

Sector Median

24.3x

Sector Avg

35.8x

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Deep Analysis

The price-to-earnings (P/E) ratio of 64.5x means investors are paying $64.50 for every $1 of the company’s annual earnings, implying high expectations for future profit growth.

This ratio sits well above the sector median of 24.8x, placing GWRE in the 90th percentile among sector peers—meaning only 10% of peers have a higher multiple. Trend data is not available: year-over-year and quarter-over-quarter changes are both listed as N/A, and the last eight quarters show no trend direction. Without a trend, the extreme valuation level alone signals elevated risk: any earnings miss could trigger a sharp re-rating, but a high multiple also reflects market confidence that growth will justify the price. The neutral verdict is supported by this metric—the lofty P/E suggests opportunity if growth materializes, yet it contradicts a bullish stance because the lack of trend confirmation adds uncertainty.

Frequently Asked Questions

What does the P/E Ratio tell investors about GWRE?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

Who are GWRE's closest peers by P/E Ratio?

The closest peers by P/E Ratio include: SHOP (111.6x), BROS (112.2x), KLIC (127.4x), BIDU (135.2x), IRM (136.8x).

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.