DCF Tool

IT

Gartner, Inc. – Data Processing, Hosting, and Related Services
gartner, inc. (nyse: it) is the world's leading information technology research and advisory company. we deliver the technology-related insight necessary for our clients to make the right decisions, every day. from cios and senior it leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, we are the valuable partner to clients in over 9,000 distinct enterprises worldwide. through the resources of gartner research, gartner executive programs, gartner consulting and gartner events, we work with every client to research, analyze and interpret the business of it within the context of their individual role. founded in 1979, gartner is headquartered in stamford, connecticut, usa., and has 6,400 associates, including more than 1,480 research analysts and consultants, and clients in 85 countries.
Analysis Results
Intrinsic Value $621.68
Latest Price $356.26
Relative Value 43% undervalued
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Cash Flow (Billions)
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 32.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 32.9%, 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 (billion) Present value (billion)
2023 1.23 1.14
2024 1.63 1.4
2025 2.17 1.72
2026 2.88 2.11
2027 3.83 2.59
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 63.9 billion. This corresponds to a present value of 40.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 8.95 billion. Adding in the terminal value gives a total present value of 49.0 billion.

There are presently 78.8 million outstanding shares, so the intrinsic value per share is 621.68.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,786,107,000
Current Cash 697,999,000
Current Liabilities 3,597,600,000
Current Debt 7,800,000
Non-Cash Working Capital (NCWC) -1,501,692,000
Change in NCWC 7,570,000
EBIT 1,109,185,000
Tax Provision 219,396,000
Depreciation and Amortization 191,946,000
Capital Expenditure -108,050,000
Unlevered Free Cash Flow 963,742,961
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

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