Discounted Cash Flow (DCF) Analysis Levered
Gartner, Inc. (IT)
$240
-14.85 (-5.83%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 3,311.49 | 3,975.45 | 4,245.32 | 4,099.40 | 4,733.96 | 5,194.11 | 5,698.99 | 6,252.94 | 6,860.73 | 7,527.61 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 254.52 | 471.16 | 565.44 | 903.28 | 1,312.47 | 858.23 | 941.65 | 1,033.18 | 1,133.61 | 1,243.79 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -110.77 | -126.87 | -149.02 | -83.89 | -59.83 | -138.75 | -152.24 | -167.04 | -183.27 | -201.09 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 143.75 | 344.29 | 416.42 | 819.39 | 1,252.64 | 719.48 | 789.41 | 866.14 | 950.33 | 1,042.71 |
Weighted Average Cost Of Capital
| Share price | $ 240 |
|---|---|
| Beta | 1.581 |
| Diluted Shares Outstanding | 86.18 |
| Cost of Debt | |
| Tax Rate | 18.18 |
| After-tax Cost of Debt | 2.99% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.350 |
| Total Debt | 3,250.28 |
| Total Equity | 20,682.48 |
| Total Capital | 23,932.76 |
| Debt Weighting | 13.58 |
| Equity Weighting | 86.42 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 3,311.49 | 3,975.45 | 4,245.32 | 4,099.40 | 4,733.96 | 5,194.11 | 5,698.99 | 6,252.94 | 6,860.73 | 7,527.61 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 254.52 | 471.16 | 565.44 | 903.28 | 1,312.47 | 858.23 | 941.65 | 1,033.18 | 1,133.61 | 1,243.79 |
| Capital Expenditure | -110.77 | -126.87 | -149.02 | -83.89 | -59.83 | -138.75 | -152.24 | -167.04 | -183.27 | -201.09 |
| Free Cash Flow | 143.75 | 344.29 | 416.42 | 819.39 | 1,252.64 | 719.48 | 789.41 | 866.14 | 950.33 | 1,042.71 |
| WACC | ||||||||||
| PV LFCF | 657.96 | 660.18 | 662.42 | 664.66 | 666.91 | |||||
| SUM PV LFCF | 3,312.13 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 9.35 |
| Free cash flow (t + 1) | 1,063.56 |
| Terminal Value | 14,470.22 |
| Present Value of Terminal Value | 9,255.10 |
Intrinsic Value
| Enterprise Value | 12,567.23 |
|---|---|
| Net Debt | 2,493.79 |
| Equity Value | 10,073.44 |
| Shares Outstanding | 86.18 |
| Equity Value Per Share | 116.89 |