IT Relative Valuation
IT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, IT is overvalued; if below, it's undervalued.
Historical Valuation
Gartner Inc (IT) is now in the Undervalued zone, suggesting that its current forward PE ratio of 17.57 is considered Undervalued compared with the five-year average of 34.63. The fair price of Gartner Inc (IT) is between 354.10 to 497.10 according to relative valuation methord. Compared to the current price of 231.54 USD , Gartner Inc is Undervalued By 34.61%.
Relative Value
Fair Zone
354.10-497.10
Current Price：231.54
34.61%
Undervalued
17.57
PE
1Y
3Y
5Y
Trailing
Forward
11.31
EV/EBITDA
Gartner Inc. (IT) has a current EV/EBITDA of 11.31. The 5-year average EV/EBITDA is 21.86. The thresholds are as follows: Strongly Undervalued below 14.47, Undervalued between 14.47 and 18.17, Fairly Valued between 25.55 and 18.17, Overvalued between 25.55 and 29.25, and Strongly Overvalued above 29.25. The current Forward EV/EBITDA of 11.31 falls within the Strongly Undervalued range.
14.17
EV/EBIT
Gartner Inc. (IT) has a current EV/EBIT of 14.17. The 5-year average EV/EBIT is 28.52. The thresholds are as follows: Strongly Undervalued below 18.51, Undervalued between 18.51 and 23.52, Fairly Valued between 33.53 and 23.52, Overvalued between 33.53 and 38.53, and Strongly Overvalued above 38.53. The current Forward EV/EBIT of 14.17 falls within the Strongly Undervalued range.
231.54
PS
Gartner Inc. (IT) has a current PS of 231.54. The 5-year average PS is 6.76. The thresholds are as follows: Strongly Undervalued below -37.39, Undervalued between -37.39 and -15.31, Fairly Valued between 28.83 and -15.31, Overvalued between 28.83 and 50.91, and Strongly Overvalued above 50.91. The current Forward PS of 231.54 falls within the Strongly Overvalued range.
11.68
P/OCF
Gartner Inc. (IT) has a current P/OCF of 11.68. The 5-year average P/OCF is 23.97. The thresholds are as follows: Strongly Undervalued below 12.86, Undervalued between 12.86 and 18.41, Fairly Valued between 29.52 and 18.41, Overvalued between 29.52 and 35.08, and Strongly Overvalued above 35.08. The current Forward P/OCF of 11.68 falls within the Strongly Undervalued range.
13.53
P/FCF
Gartner Inc. (IT) has a current P/FCF of 13.53. The 5-year average P/FCF is 25.96. The thresholds are as follows: Strongly Undervalued below 13.31, Undervalued between 13.31 and 19.64, Fairly Valued between 32.28 and 19.64, Overvalued between 32.28 and 38.61, and Strongly Overvalued above 38.61. The current Forward P/FCF of 13.53 falls within the Undervalued range.
Gartner Inc (IT) has a current Price-to-Book (P/B) ratio of 30.33. Compared to its 3-year average P/B ratio of 28.01 , the current P/B ratio is approximately 8.29% higher. Relative to its 5-year average P/B ratio of 20.49, the current P/B ratio is about 48.05% higher. Gartner Inc (IT) has a Forward Free Cash Flow (FCF) yield of approximately 0.07%. Compared to its 3-year average FCF yield of 3.90%, the current FCF yield is approximately -98.13% lower. Relative to its 5-year average FCF yield of 4.37% , the current FCF yield is about -98.33% lower.
30.33
P/B
Median3y
28.01
Median5y
20.49
0.07
FCF Yield
Median3y
3.90
Median5y
4.37
Competitors Valuation Multiple
The average P/S ratio for IT's competitors is 132.25, providing a benchmark for relative valuation. Gartner Inc Corp (IT) exhibits a P/S ratio of 231.54, which is 75.08% above the industry average. Given its robust revenue growth of 2.68%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of IT decreased by 55.30% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 15.07 to 20.15.
The secondary factor is the Revenue Growth, contributed 2.68%to the performance.
Overall, the performance of IT in the past 1 year is driven by P/E Change. Which is more unsustainable.
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