Discounted Cash Flow

Gartner Inc.

IT · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $2.4b $193.6m $315.8m 7.9% $2.34
2017 $3.3b (35.5%) $3.3m (-98.3%) $143.8m (-54.5%) 0.1% (-98.7%) $0.04 (-98.3%)
2018 $4.0b (20.1%) $122.5m (3634.6%) $344.3m (139.5%) 3.1% (3010.8%) $1.35 (3275.0%)
2019 $4.2b (6.8%) $233.3m (90.5%) $416.4m (21.0%) 5.5% (78.4%) $2.60 (92.6%)
2020 $4.1b (-3.4%) $266.7m (14.3%) $819.4m (96.8%) 6.5% (18.4%) $2.99 (15.0%)
2021 $4.7b (15.5%) $793.6m (197.5%) $1.3b (52.9%) 16.8% (157.6%) $9.33 (212.0%)
2022 $5.5b (15.7%) $807.8m (1.8%) $993.4m (-20.7%) 14.8% (-12.0%) $10.08 (8.0%)
2023 $5.9b (7.9%) $882.5m (9.2%) $1.1b (6.0%) 14.9% (1.3%) $11.17 (10.8%)
2024 $6.3b (6.1%) $1.3b (42.1%) $1.4b (31.4%) 20.0% (33.9%) $16.12 (44.3%)
2025 $6.5b (3.7%) $729.2m (-41.8%) $1.2b (-15.0%) 11.2% (-43.9%) $9.68 (-40.0%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model