Benzinga·2025-12-24 15:00Core Insights - Clearwater Analytics Holdings Inc aims to be a trusted technology platform for the investment cycle, expanding its focus from back-office functions to include front-office and middle-office capabilities through acquisitions [2] Financial Metrics Comparison - Clearwater Analytics has a Price to Earnings (P/E) ratio of 15.45, which is 0.35x lower than the industry average, indicating favorable growth potential [3] - The Price to Book (P/B) ratio stands at 3.57, significantly below the industry average by 0.37x, suggesting undervaluation and potential for growth [3] - The Price to Sales (P/S) ratio is 10.64, which is 1.36x higher than the industry average, indicating potential overvaluation in relation to sales performance [3] - The Return on Equity (ROE) is -0.52%, which is 6.55% below the industry average, suggesting inefficiency in generating profits from equity [3] - EBITDA is reported at $40 million, which is 0.31x below the industry average, indicating possible financial challenges [3] - Gross profit is $130 million, which is 0.5x below the industry average, suggesting lower revenue after production costs [3] Revenue Growth - Clearwater Analytics achieved a revenue growth rate of 77.08%, surpassing the industry average of 47.43%, indicating strong sales performance and market outperformance [4] Debt-to-Equity Ratio - The company has a moderate debt-to-equity (D/E) ratio of 0.45, indicating a balanced financial structure with a reasonable level of debt while leveraging equity for operations [11] Overall Outlook - Valuation metrics suggest Clearwater Analytics is undervalued compared to peers, but low ROE, EBITDA, and gross profit indicate operational challenges. The high revenue growth rate presents potential for future performance improvement, leading to a mixed outlook compared to industry peers [9]