Discounted Cash Flow (DCF) Analysis Levered
Gartner, Inc. (IT)
$346.42
-2.77 (-0.79%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 3,975.45 | 4,245.32 | 4,099.44 | 4,733.94 | 5,475.83 | 5,948.14 | 6,461.19 | 7,018.49 | 7,623.86 | 8,281.45 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 471.16 | 565.44 | 903.28 | 1,312.47 | 1,101.42 | 1,130.67 | 1,228.19 | 1,334.13 | 1,449.20 | 1,574.20 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -126.87 | -149.02 | -83.89 | -59.83 | -108.05 | -142.58 | -154.87 | -168.23 | -182.74 | -198.51 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 344.29 | 416.42 | 819.39 | 1,252.64 | 993.37 | 988.09 | 1,073.32 | 1,165.89 | 1,266.46 | 1,375.69 |
Weighted Average Cost Of Capital
| Share price | $ 346.42 |
|---|---|
| Beta | 1.242 |
| Diluted Shares Outstanding | 81.07 |
| Cost of Debt | |
| Tax Rate | 21.36 |
| After-tax Cost of Debt | 3.02% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.393 |
| Total Debt | 3,158.39 |
| Total Equity | 28,083.23 |
| Total Capital | 31,241.62 |
| Debt Weighting | 10.11 |
| Equity Weighting | 89.89 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 3,975.45 | 4,245.32 | 4,099.44 | 4,733.94 | 5,475.83 | 5,948.14 | 6,461.19 | 7,018.49 | 7,623.86 | 8,281.45 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 471.16 | 565.44 | 903.28 | 1,312.47 | 1,101.42 | 1,130.67 | 1,228.19 | 1,334.13 | 1,449.20 | 1,574.20 |
| Capital Expenditure | -126.87 | -149.02 | -83.89 | -59.83 | -108.05 | -142.58 | -154.87 | -168.23 | -182.74 | -198.51 |
| Free Cash Flow | 344.29 | 416.42 | 819.39 | 1,252.64 | 993.37 | 988.09 | 1,073.32 | 1,165.89 | 1,266.46 | 1,375.69 |
| WACC | ||||||||||
| PV LFCF | 901.13 | 892.71 | 884.37 | 876.10 | 867.92 | |||||
| SUM PV LFCF | 4,422.23 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 9.65 |
| Free cash flow (t + 1) | 1,403.21 |
| Terminal Value | 18,342.59 |
| Present Value of Terminal Value | 11,572.24 |
Intrinsic Value
| Enterprise Value | 15,994.47 |
|---|---|
| Net Debt | 2,460.39 |
| Equity Value | 13,534.08 |
| Shares Outstanding | 81.07 |
| Equity Value Per Share | 166.95 |