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 17.63 is considered Undervalued compared with the five-year average of 34.25. The fair price of Gartner Inc (IT) is between 339.56 to 488.22 according to relative valuation methord. Compared to the current price of 231.91 USD , Gartner Inc is Undervalued By 31.7%.
Relative Value
Fair Zone
339.56-488.22
Current Price：231.91
31.7%
Undervalued
17.65
PE
1Y
3Y
5Y
Trailing
Forward
11.38
EV/EBITDA
Gartner Inc. (IT) has a current EV/EBITDA of 11.38. The 5-year average EV/EBITDA is 21.54. The thresholds are as follows: Strongly Undervalued below 13.44, Undervalued between 13.44 and 17.49, Fairly Valued between 25.60 and 17.49, Overvalued between 25.60 and 29.65, and Strongly Overvalued above 29.65. The current Forward EV/EBITDA of 11.38 falls within the Strongly Undervalued range.
14.20
EV/EBIT
Gartner Inc. (IT) has a current EV/EBIT of 14.20. The 5-year average EV/EBIT is 28.01. The thresholds are as follows: Strongly Undervalued below 17.14, Undervalued between 17.14 and 22.58, Fairly Valued between 33.44 and 22.58, Overvalued between 33.44 and 38.87, and Strongly Overvalued above 38.87. The current Forward EV/EBIT of 14.20 falls within the Strongly Undervalued range.
2.52
PS
Gartner Inc. (IT) has a current PS of 2.52. The 5-year average PS is 4.62. The thresholds are as follows: Strongly Undervalued below 2.75, Undervalued between 2.75 and 3.69, Fairly Valued between 5.56 and 3.69, Overvalued between 5.56 and 6.49, and Strongly Overvalued above 6.49. The current Forward PS of 2.52 falls within the Strongly Undervalued range.
12.45
P/OCF
Gartner Inc. (IT) has a current P/OCF of 12.45. The 5-year average P/OCF is 23.57. The thresholds are as follows: Strongly Undervalued below 12.08, Undervalued between 12.08 and 17.82, Fairly Valued between 29.32 and 17.82, Overvalued between 29.32 and 35.06, and Strongly Overvalued above 35.06. The current Forward P/OCF of 12.45 falls within the Undervalued range.
13.61
P/FCF
Gartner Inc. (IT) has a current P/FCF of 13.61. The 5-year average P/FCF is 25.62. The thresholds are as follows: Strongly Undervalued below 12.48, Undervalued between 12.48 and 19.05, Fairly Valued between 32.18 and 19.05, Overvalued between 32.18 and 38.75, and Strongly Overvalued above 38.75. The current Forward P/FCF of 13.61 falls within the Undervalued range.
Gartner Inc (IT) has a current Price-to-Book (P/B) ratio of 30.38. Compared to its 3-year average P/B ratio of 37.19 , the current P/B ratio is approximately -18.31% higher. Relative to its 5-year average P/B ratio of 20.81, the current P/B ratio is about 46.02% higher. Gartner Inc (IT) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.97%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.39% , the current FCF yield is about -100.00% lower.
30.41
P/B
Median3y
37.19
Median5y
20.81
7.27
FCF Yield
Median3y
3.97
Median5y
4.39
Competitors Valuation Multiple
The average P/S ratio for IT's competitors is , providing a benchmark for relative valuation. Gartner Inc Corp (IT) exhibits a P/S ratio of , which is NaN% 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 52.09% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 14.75 to 20.20.
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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