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CWANClearwater Analytics Holdings, Inc.
$24.56$7.3B
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  4. Financial Ratios

Clearwater Analytics Holdings, Inc. (CWAN) Financial Ratios

Latest Ratios: P/E Ratio -175.4x · EV/EBITDA 71.2x · ROE -2.5%. (2019–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

CWAN Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019
Market Cap$7.3B$6.5B$7.0B$4.0B$3.5B$4.1B——
Enterprise Value$8.1B$7.3B$6.9B$3.9B$3.3B$3.9B——
P/E Ratio →-175.43—16.38—————
P/S Ratio9.988.9515.4910.8611.4716.23——
P/B Ratio3.283.226.799.7610.2815.62——
P/FCF44.4339.82101.3650.6469.24———
P/OCF41.5137.2194.1947.2859.981218.34——

P/E links to full P/E history page with 30-year chart

CWAN EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019
EV / Revenue—10.0315.2610.4610.8915.44——
EV / EBITDA71.2264.56282.39—322.26121.75——
EV / EBIT288.13261.19563.56—645.91136.70——
EV / FCF—44.6499.8348.7565.78———

CWAN Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019
Gross Margin67.3%67.3%72.8%70.9%71.1%73.1%73.8%71.9%
Operating Margin3.8%3.8%2.7%-4.5%1.7%11.3%-10.0%15.3%
Net Profit Margin-5.3%-5.3%93.9%-5.9%-2.6%-3.3%-21.8%4.6%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019
ROE-2.5%-2.5%58.9%-5.8%-2.7%-3.1%——
ROA-1.8%-1.8%49.1%-4.2%-1.9%-3.6%-49.3%12.1%
ROIC1.1%1.1%1.5%-5.9%3.4%53.1%-67.9%74.4%
ROCE1.4%1.4%1.6%-3.7%1.4%14.6%-33.8%59.2%

CWAN Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019
Debt / Equity0.430.430.070.180.230.21——
Debt / EBITDA7.777.772.95—7.471.69—8.91
Net Debt / Equity—0.39-0.10-0.37-0.51-0.77——
Net Debt / EBITDA6.976.97-4.32—-16.98-6.28—8.18
Debt / FCF—4.82-1.53-1.90-3.47———
Interest Coverage0.620.62———1.11-0.891.44

CWAN Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019
Current Ratio1.831.834.995.155.4010.302.662.57
Quick Ratio1.831.834.995.155.4010.302.662.57
Cash Ratio0.570.573.323.673.878.161.600.99
Asset Turnover—0.240.390.660.630.731.762.63
Inventory Turnover————————
Days Sales Outstanding—85.8189.01100.0795.3172.6959.0657.70

CWAN Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019
Dividend Yield————————
Payout Ratio————————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019
Earnings Yield——6.1%—————
FCF Yield2.3%2.5%1.0%2.0%1.4%———
Buyback Yield0.2%0.3%0.0%0.0%0.0%0.0%——
Total Shareholder Yield0.2%0.3%0.0%0.0%0.0%0.0%——
Shares Outstanding—$271M$254M$200M$186M$178M$236M$236M

Key Metrics

Growth RegimeAccelerating
ProfitabilityStrained
Balance SheetAdequate
Cash FlowMixed
Top Statement Risk

High stock-based compensation dilution

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Premium Pricing Reflects Growth Expectations

Based on recent market data, CWAN trades at an EV/EBITDA multiple of 71.22, which significantly exceeds the valuation of legacy peers like Verint Systems, suggesting that investors are pricing in a high-growth trajectory that assumes rapid market share capture within the institutional investment software sector.

The forward P/E of 36.22 implies that the market expects substantial earnings expansion, yet the current negative GAAP net margin makes traditional valuation metrics difficult to reconcile with fundamental performance. Investors should monitor whether the company can transition from its current growth-at-all-costs phase to a sustainable profitability model without triggering a valuation multiple compression.

Capital Efficiency Constrained by Acquisitions

As reported in financial statements, the ROIC has remained largely stagnant, hovering near 0.4% in 2026Q1, which indicates that the company's aggressive inorganic growth strategy has yet to generate meaningful returns on the capital deployed into its expanding asset base and complex software infrastructure.

The low ROIC suggests that the firm is currently struggling to achieve the necessary scale to overcome the high costs of its cloud-native architecture and recent acquisitions. Unless management can improve the efficiency of its invested capital, the company may continue to face challenges in delivering long-term value to shareholders relative to the capital intensity of its business model.

Working Capital Cycles Require Monitoring

According to recent SEC filings, the company's Days Sales Outstanding (DSO) has remained elevated at 69 days in 2026Q1, reflecting a persistent lag in cash collection that may indicate structural challenges in managing receivables from large-scale institutional clients during periods of rapid enterprise implementation.

The asset turnover ratio of 0.07 suggests that the company is not yet maximizing the revenue-generating potential of its asset base, which is heavily weighted toward intangible assets and goodwill. This inefficiency warrants further investigation into whether the current sales cycle is becoming increasingly capital-intensive or if the firm is facing longer-than-anticipated integration timelines for new clients.

Debt Load Rising Amid Expansion

Based on reported figures, the debt-to-equity ratio has climbed to 0.42 as of 2026Q1, signaling a shift toward a more leveraged capital structure that contrasts with the company's earlier, more conservative balance sheet profile during its initial public offering phase.

While the interest coverage ratio of 1.19 suggests that debt service remains manageable for now, the narrowing margin of safety indicates that any volatility in recurring revenue could pressure the company's ability to meet its obligations. Investors should monitor the firm's reliance on debt to fund its ongoing growth initiatives, as this increases the sensitivity of the balance sheet to interest rate fluctuations.

Misapplication of Adjusted EBITDA Metrics

As noted in recent financial disclosures, the market's reliance on Adjusted EBITDA as a primary performance metric for CWAN obscures the significant impact of stock-based compensation, which consistently dilutes shareholder value and masks the company's true GAAP-based profitability and cash-generating capacity.

Using EBITDA to evaluate this business model is misleading because it ignores the substantial non-cash expenses that are essential to the company's talent-heavy operating strategy. Analysts should instead focus on free cash flow adjusted for stock-based compensation to gain a more accurate understanding of the firm's underlying economic performance and its ability to fund operations without continuous dilution.

Download Financial Ratios Data

Includes 30+ ratios · 7 years · Updated daily

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CWAN — Frequently Asked Questions

Quick answers to the most common questions about buying CWAN stock.

What is Clearwater Analytics Holdings, Inc.'s P/E ratio?

Clearwater Analytics Holdings, Inc.'s current P/E ratio is -175.4x. The historical average is 16.4x.

What is Clearwater Analytics Holdings, Inc.'s EV/EBITDA?

Clearwater Analytics Holdings, Inc.'s current EV/EBITDA is 71.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 64.6x.

What is Clearwater Analytics Holdings, Inc.'s ROE?

Clearwater Analytics Holdings, Inc.'s return on equity (ROE) is -2.5%. The historical average is 9.0%.

Is CWAN stock overvalued?

Based on historical data, Clearwater Analytics Holdings, Inc. is trading at a P/E of -175.4x. Compare with industry peers and growth rates for a complete picture.

What are Clearwater Analytics Holdings, Inc.'s profit margins?

Clearwater Analytics Holdings, Inc. has 67.3% gross margin and 3.8% operating margin.

How much debt does Clearwater Analytics Holdings, Inc. have?

Clearwater Analytics Holdings, Inc.'s Debt/EBITDA ratio is 7.8x, indicating high leverage. A ratio above 4x may signal elevated financial risk.