Discounted Cash Flow (DCF) Analysis Unlevered

Gartner, Inc. (IT)

$346.42

-2.77 (-0.79%)

All numbers are in Millions, Currency in USD

Stock DCF: 98.16 | 346.42 | overvalue

Operating Data

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 (%)
EBITDA	625.25	602.87	709.61	1,152.53	1,349.56	1,144.78	1,243.52	1,350.78	1,467.29	1,593.85
EBITDA (%)
EBIT	369.64	391.09	490.63	940.12	1,157.62	850.33	923.67	1,003.34	1,089.88	1,183.89
EBIT (%)
Depreciation	255.60	211.78	218.98	212.40	191.95	294.46	319.85	347.44	377.41	409.96
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	156.37	280.84	712.58	756.49	698	674.02	732.16	795.31	863.91	938.42
Total Cash (%)
Account Receivables	1,255.12	1,326.01	1,241.51	1,365.18	1,556.79	1,788.72	1,943	2,110.59	2,292.64	2,490.39
Account Receivables (%)
Inventories	-	-	-	-	412.11	447.66	486.27	528.22	573.78	623.27
Inventories (%)
Accounts Payable	37.51	33	38.59	49.28	83.22	62.13	67.49	73.31	79.64	86.50
Accounts Payable (%)
Capital Expenditure	-126.87	-149.02	-83.89	-59.83	-108.05	-142.58	-154.87	-168.23	-182.74	-198.51
Capital Expenditure (%)

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	10.395
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

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
EBITDA	625.25	602.87	709.61	1,152.53	1,349.56	1,144.78	1,243.52	1,350.78	1,467.29	1,593.85
EBIT	369.64	391.09	490.63	940.12	1,157.62	850.33	923.67	1,003.34	1,089.88	1,183.89
Tax Rate	32.39%	15.39%	18.20%	18.17%	21.36%	21.10%	21.10%	21.10%	21.10%	21.10%
EBIAT	249.92	330.88	401.35	769.26	910.37	670.88	728.75	791.60	859.88	934.05
Depreciation	255.60	211.78	218.98	212.40	191.95	294.46	319.85	347.44	377.41	409.96
Accounts Receivable	-	-70.89	84.50	-123.67	-191.61	-231.93	-154.28	-167.59	-182.05	-197.75
Inventories	-	-	-	-	-	-35.55	-38.61	-41.94	-45.56	-49.49
Accounts Payable	-	-4.51	5.59	10.69	33.95	-21.09	5.36	5.82	6.32	6.87
Capital Expenditure	-126.87	-149.02	-83.89	-59.83	-108.05	-142.58	-154.87	-168.23	-182.74	-198.51
UFCF	378.65	318.24	626.54	808.85	836.61	534.19	706.19	767.10	833.27	905.14
WACC
PV UFCF						487.18	587.36	581.87	576.43	571.05
SUM PV UFCF										2,803.89

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.65
Free cash flow (t + 1)	923.24
Terminal Value	12,068.51
Present Value of Terminal Value	7,613.96

Intrinsic Value

Enterprise Value	10,417.84
Net Debt	2,460.39
Equity Value	7,957.45
Shares Outstanding	81.07
Equity Value Per Share	98.16