GWRE — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($150.93)
DCF	$345140.84	+228576.1%
Graham Number	$20.74	-86.3%
Reverse DCF	—	implied g: 24.8%
DDM	—	—
EV/EBITDA	$149.01	-1.3%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $229.19M

Near-term growth (yrs 1–5)(%)Rev: 26.5% / EPS: 228.0%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.92%

Computed WACC: 9.92%

Cost of equity (Re)10.32%(Rf 4.30% + β 1.09 × ERP 5.50%)

Cost of debt (Rd)3.31%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)94.80%

Debt weight (D/V)5.20%

Results

Intrinsic Value / share$282739.98

Current Price$150.93

Upside / Downside+187231.9%

Net Debt (used)-$307.40M

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	220.0%	224.0%	228.0%	232.0%	236.0%
7.0%	$511031.19	$543772.86	$578171.72	$614289.88	$652191.00
8.0%	$388094.12	$412957.90	$439080.08	$466507.84	$495289.50
9.0%	$305065.21	$324608.49	$345140.84	$366699.35	$389322.01
10.0%	$245816.85	$261563.53	$278107.11	$295477.45	$313705.17
11.0%	$201825.38	$214753.15	$228335.13	$242595.83	$257560.38

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $1.06

Book Value / share($)Yahoo: $18.04

Results

Graham Number$20.74

Current Price$150.93

Margin of Safety-86.3%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.92%

Terminal growth rate(%)

Computed WACC: 9.92%

Cost of equity (Re)10.32%(Rf 4.30% + β 1.09 × ERP 5.50%)

Cost of debt (Rd)3.31%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)94.80%

Debt weight (D/V)5.20%

Results

Current Price$150.93

Implied Near-term FCF Growth27.7%

Historical Revenue Growth26.5%

Historical Earnings Growth228.0%

Base FCF (TTM)$229.19M

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$150.93

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $75.54M

Target EV/EBITDA multipleCurrent: 163.6×

Net Debt($B)Default: -$307.40M

Results

Implied Equity Value / share$149.01

Current Price$150.93

Upside / Downside-1.3%

Implied EV$12.36B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	-$2.31B	-$1.31B	-$307.40M	$692.60M	$1.69B
159.6x	$168.98	$157.22	$145.46	$133.69	$121.93
161.6x	$170.76	$158.99	$147.23	$135.47	$123.71
163.6x	$172.53	$160.77	$149.01	$137.25	$125.49
165.6x	$174.31	$162.55	$150.79	$139.02	$127.26
167.6x	$176.09	$164.33	$152.56	$140.80	$129.04

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