Discounted Cash Flow (DCF) Analysis Levered

Gartner, Inc. (IT)

$344.55

+0.56 (+0.16%)
All numbers are in Millions, Currency in USD
Stock DCF: 182.75 | 344.55 | overvalue

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 3,975.454,245.324,099.404,733.965,475.855,948.176,461.227,018.547,623.928,281.52
Revenue (%)
Operating Cash Flow 471.16565.44903.281,312.471,101.421,130.671,228.201,334.141,449.211,574.22
Operating Cash Flow (%)
Capital Expenditure -126.87-149.02-83.89-59.83-108.05-142.58-154.88-168.23-182.75-198.51
Capital Expenditure (%)
Free Cash Flow 344.29416.42819.391,252.64993.37988.101,073.321,165.901,266.471,375.71

Weighted Average Cost Of Capital

Share price $ 344.55
Beta 1.280
Diluted Shares Outstanding 81.07
Cost of Debt
Tax Rate 21.36
After-tax Cost of Debt 3.25%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.789
Total Debt 3,058.67
Total Equity 27,931.63
Total Capital 30,990.31
Debt Weighting 9.87
Equity Weighting 90.13
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 3,975.454,245.324,099.404,733.965,475.855,948.176,461.227,018.547,623.928,281.52
Operating Cash Flow 471.16565.44903.281,312.471,101.421,130.671,228.201,334.141,449.211,574.22
Capital Expenditure -126.87-149.02-83.89-59.83-108.05-142.58-154.88-168.23-182.75-198.51
Free Cash Flow 344.29416.42819.391,252.64993.37988.101,073.321,165.901,266.471,375.71
WACC
PV LFCF 829.53825.62821.73817.85814
SUM PV LFCF 4,484.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.14
Free cash flow (t + 1) 1,403.22
Terminal Value 19,652.96
Present Value of Terminal Value 12,691.36

Intrinsic Value

Enterprise Value 17,175.62
Net Debt 2,360.68
Equity Value 14,814.94
Shares Outstanding 81.07
Equity Value Per Share 182.75