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Gartner, Inc. – Data Processing, Hosting, and Related Services
Gartner, Inc. is the world's leading research and advisory company and a member of the S&P 500. Gartner equips business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities and build the successful organizations of tomorrow. Its unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. Gartner is a trusted advisor and an objective resource for more than 14,000 enterprises in more than 100 countries - across all major functions, in every industry and enterprise size.
Analysis Results
Intrinsic Value $65.36
Latest Price $300.40
Relative Value 360% overvalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 10.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.4%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 340 309
2023 375 310
2024 414 311
2025 458 312
2026 506 313
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 6420 million. This corresponds to a present value of 3610 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1560 million. Adding in the terminal value gives a total present value of 5170 million.

There are presently 79.1 million outstanding shares, so the intrinsic value per share is 65.36.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,620,080,000
Current Cash 756,493,000
Current Liabilities 3,378,780,000
Current Debt 5,931,000
Non-Cash Working Capital (NCWC) -1,509,262,000
Change in NCWC -192,758,000
EBIT 921,806,000
Tax Provision 176,310,000
Depreciation and Amortization 212,405,000
Capital Expenditure -59,834,000
Unlevered Free Cash Flow 714,046,422
Current Assets 2,323,058,000
Current Cash 712,583,000
Current Liabilities 2,947,494,000
Current Debt 20,515,000
Non-Cash Working Capital (NCWC) -1,316,504,000
Change in NCWC -337,593,000
EBIT 496,432,000
Tax Provision 59,388,000
Depreciation and Amortization 218,984,000
Capital Expenditure -83,888,000
Unlevered Free Cash Flow 203,535,979
Current Assets 2,018,741,000
Current Cash 280,836,000
Current Liabilities 2,856,534,000
Current Debt 139,718,000
Non-Cash Working Capital (NCWC) -978,911,000
Change in NCWC -178,925,000
EBIT 379,550,000
Tax Provision 42,449,000
Depreciation and Amortization 211,779,000
Capital Expenditure -149,016,000
Unlevered Free Cash Flow 204,957,680
Current Assets 1,811,739,000
Current Cash 156,368,000
Current Liabilities 2,620,935,000
Current Debt 165,578,000
Non-Cash Working Capital (NCWC) -799,986,000
Change in NCWC -406,822,000
EBIT 366,912,000
Tax Provision 58,665,000
Depreciation and Amortization 255,601,000
Capital Expenditure -126,873,000
Unlevered Free Cash Flow -30,024,610
Current Assets 2,588,608,000
Current Cash 538,908,000
Current Liabilities 2,822,585,000
Current Debt 379,721,000
Non-Cash Working Capital (NCWC) -393,164,000
Change in NCWC 168,122,000
EBIT 152,121,000
Tax Provision -131,096,000
Depreciation and Amortization 240,171,000
Capital Expenditure -110,765,000
Unlevered Free Cash Flow 449,649,000
Current Assets 1,343,196,000
Current Cash 474,233,000
Current Liabilities 1,460,249,000
Current Debt 30,000,000
Non-Cash Working Capital (NCWC) -561,286,000
Change in NCWC -40,815,000
EBIT 347,739,000
Tax Provision 94,849,000
Depreciation and Amortization 61,969,000
Capital Expenditure -49,863,000
Unlevered Free Cash Flow 204,677,879
Current Assets 1,140,997,000
Current Cash 372,976,000
Current Liabilities 1,323,492,000
Current Debt 35,000,000
Non-Cash Working Capital (NCWC) -520,471,000
Change in NCWC -56,609,000
EBIT 314,172,000
Tax Provision 96,576,000
Depreciation and Amortization 47,131,000
Capital Expenditure -46,128,000
Unlevered Free Cash Flow 147,102,925
Current Assets 1,096,658,000
Current Cash 365,302,000
Current Liabilities 1,215,218,000
Current Debt 20,000,000
Non-Cash Working Capital (NCWC) -463,862,000
Change in NCWC -33,581,000
EBIT 308,029,000
Tax Provision 90,917,000
Depreciation and Amortization 39,412,000
Capital Expenditure -38,486,000
Unlevered Free Cash Flow 173,419,847
Current Assets 1,084,882,000
Current Cash 423,990,000
Current Liabilities 1,159,923,000
Current Debt 68,750,000
Non-Cash Working Capital (NCWC) -430,281,000
Change in NCWC -77,895,000
EBIT 275,829,000
Tax Provision 83,638,000
Depreciation and Amortization 34,442,000
Capital Expenditure -36,498,000
Unlevered Free Cash Flow 109,292,380
Current Assets 927,466,000
Current Cash 299,852,000
Current Liabilities 1,070,000,000
Current Debt 90,000,000
Non-Cash Working Capital (NCWC) -352,386,000
Change in NCWC -44,295,000
EBIT 248,127,000
Tax Provision 69,693,000
Depreciation and Amortization 29,771,000
Capital Expenditure -44,337,000
Unlevered Free Cash Flow 115,866,133

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.