GWRE - Embedded Expectations Analysis - 2020 02 20
ï€ Guidewire Software, Inc. (GWRE:USA) currently trades at historical highs relative to UAFRS-based (Uniform) Earnings, with an 81.1x Uniform P/E, implying bullish expectations for the firm. Additionally, management is excited about their cloud platform, and is confident about the value of SaaS and their DevConnect investmentï€ Specifically, management generated an excitement marker when saying they view moving an instance of Guidewire to a cloud platform as the first step in the logical progression to a better Software-as-a-Service (SaaS) offering. In addition, they are confident the nature of deals they are pursuing revolves around cloud and that rapid upgrades associated with SaaS will end up being transformational for the P&C insurance industry. Moreover, they are confident their investments into DevConnect will lead to a faster integration of applications and that data and analytics can lead to a more modern approach to rating commercial risk and writing insurance premiums.
Guidewire Software provides a technology platform, composed of software, services, and a partner ecosystem, for the property and casualty insurance industry. Guidewire InsurancePlatform? consists of cloud and on-premise applications to support core operations, data management and analytics, and digital engagement and is connected to various data sources and third party applications. The company's operational platforms include: Guidewire InsuranceSuite, which comprises of PolicyCenter, BillingCenter, and ClaimCenter applications; and Guidewire InsuranceNow, which provides policy, billing and claims management functionality to insurers that prefer to subscribe to a cloud-based, all-in-one solution.
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