Thinking about what to do with Gartner’s stock right now? You are definitely not alone. After all, deciding whether to stick with, cut loose, or double down on a stock like Gartner requires some clarity, especially with the way the market’s been shifting lately. In just the last week, Gartner’s share price crept up by 0.6%, hinting that a few investors may see a spark of renewed interest. Zoom out a bit, though, and the picture changes. The stock is almost flat over the past month, and it is still down a steep 48.9% year-to-date. Over the last year, Gartner shares have dropped by more than 53%, erasing much of the stunning 96.7% gain the company locked in over five years. These swings suggest that sentiment around Gartner has shifted wildly, with macroeconomic factors and investor preferences playing a much bigger role than company-specific drama.

Of course, the real question is whether a stock that's lost this much ground is now a golden value opportunity, or if there’s more pain to come. As of today, Gartner scores a 3 out of 6 on the undervaluation scorecard, meaning it passes half the classic valuation checks and potentially leaves room for some upside if sentiment rebounds. But which checks matter most, and is there a deeper way to get to the heart of value? Let’s walk through the main approaches analysts use to size up valuations, and then explore a perspective that goes beyond just the numbers.

Why Gartner is lagging behind its peers

The Discounted Cash Flow (DCF) model estimates a company's value by projecting its future cash flows and then discounting those amounts back to their present value. This approach helps investors understand what a business is worth based solely on how much cash it is expected to generate.

For Gartner, the most recent Free Cash Flow (FCF) stands at $1.5 Billion. Analysts forecast a modest growth in FCF, projecting it to reach $1.25 Billion by the end of 2027. Ten-year scenarios continue this trend, although later years rely on extrapolated estimates rather than direct analyst forecasts.

Applying these projections, the DCF model calculates Gartner's intrinsic value at $223.73 per share. However, this figure is roughly 10.3% lower than the current market price. This suggests the stock is slightly overvalued by DCF standards, indicating that the market may be factoring in either higher future growth or paying a premium for Gartner’s business model at this time.

Result: OVERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Gartner.

Our Discounted Cash Flow (DCF) analysis suggests Gartner may be overvalued by 10.3%. Find undervalued stocks or create your own screener to find better value opportunities.

For companies like Gartner that consistently generate profits, the Price-to-Earnings (PE) ratio remains the go-to tool for stock valuation. The PE ratio allows investors to quickly gauge how much they are paying for each dollar of current earnings, and it tends to work especially well for established, profitable businesses.

That said, what counts as a “normal” or “fair” PE ratio is not set in stone. Higher growth expectations can justify higher PE ratios since investors are willing to pay up for future expansion, while risks like economic uncertainty or slowing earnings can bring the ratio down.

Gartner’s current PE ratio stands at 14.8x, which is notably below the IT industry average of 32.2x and the peer group average of 21.4x. While these comparisons can be helpful, they tend to ignore the specifics that matter most to each business.

This is where the proprietary “Fair Ratio” from Simply Wall St comes in. The Fair Ratio, calculated at 22.0x for Gartner, reflects a tailored benchmark factoring in unique drivers such as its recent earnings growth, profit margin, industry norms, market cap, and company-specific risks. This makes it a more effective tool than simple peer or industry averages because it is grounded in the real traits and prospects of the business rather than just similarities on paper.

Given Gartner’s actual PE is 14.8x while the Fair Ratio is 22.0x, the stock trades noticeably below its custom fair value benchmark, which may indicate potential undervaluation if the market outlook stabilizes.

Result: UNDERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth .

Earlier we mentioned that there's an even better way to understand valuation, so let's introduce you to Narratives. A Narrative is simply your own story about a company like Gartner, the reasons and logic you believe make it valuable, along with clear assumptions about where its revenue, earnings, and margins might go in the future. Rather than relying on just one official estimate, Narratives empower you to connect Gartner’s business outlook to a specific financial forecast. This forecast is then instantly used to calculate your own Fair Value for the stock.

This approach is both straightforward and flexible. On Simply Wall St’s platform, Narratives are available on the Community page and used by millions of investors. They make it easy to compare your point of view with that of other investors and professionals, and help you make buy or sell decisions by showing when the Fair Value based on your Narrative is above or below today's share price. Narratives are dynamic too, updating automatically whenever fresh news or results are released, so your view stays relevant in real time.

For example, the most optimistic Narrative for Gartner right now sets a Fair Value at $457.00, reflecting strong belief in industry tailwinds and margin recovery. The least bullish sees Fair Value at just $225.00, suggesting skepticism about growth and persistent challenges. This highlights how Narratives make different perspectives actionable in a clear, side-by-side way.

Do you think there's more to the story for Gartner? Create your own Narrative to let the Community know!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include IT .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Thinking about what to do with Gartner’s stock right now? You are definitely not alone. After all, deciding whether to stick with, cut loose, or double down on a stock like Gartner requires some clarity, especially with the way the market’s been shifting lately. In just the last week, Gartner’s share price crept up by 0.6%, hinting that a few investors may see a spark of renewed interest. Zoom out a bit, though, and the picture changes. The stock is almost flat over the past month, and it is still down a steep 48.9% year-to-date. Over the last year, Gartner shares have dropped by more than 53%, erasing much of the stunning 96.7% gain the company locked in over five years. These swings suggest that sentiment around Gartner has shifted wildly, with macroeconomic factors and investor preferences playing a much bigger role than company-specific drama.

Of course, the real question is whether a stock that's lost this much ground is now a golden value opportunity, or if there’s more pain to come. As of today, Gartner scores a 3 out of 6 on the undervaluation scorecard, meaning it passes half the classic valuation checks and potentially leaves room for some upside if sentiment rebounds. But which checks matter most, and is there a deeper way to get to the heart of value? Let’s walk through the main approaches analysts use to size up valuations, and then explore a perspective that goes beyond just the numbers.

Why Gartner is lagging behind its peers

The Discounted Cash Flow (DCF) model estimates a company's value by projecting its future cash flows and then discounting those amounts back to their present value. This approach helps investors understand what a business is worth based solely on how much cash it is expected to generate.

For Gartner, the most recent Free Cash Flow (FCF) stands at $1.5 Billion. Analysts forecast a modest growth in FCF, projecting it to reach $1.25 Billion by the end of 2027. Ten-year scenarios continue this trend, although later years rely on extrapolated estimates rather than direct analyst forecasts.

Applying these projections, the DCF model calculates Gartner's intrinsic value at $223.73 per share. However, this figure is roughly 10.3% lower than the current market price. This suggests the stock is slightly overvalued by DCF standards, indicating that the market may be factoring in either higher future growth or paying a premium for Gartner’s business model at this time.

Result: OVERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Gartner.

Our Discounted Cash Flow (DCF) analysis suggests Gartner may be overvalued by 10.3%. Find undervalued stocks or create your own screener to find better value opportunities.

For companies like Gartner that consistently generate profits, the Price-to-Earnings (PE) ratio remains the go-to tool for stock valuation. The PE ratio allows investors to quickly gauge how much they are paying for each dollar of current earnings, and it tends to work especially well for established, profitable businesses.

That said, what counts as a “normal” or “fair” PE ratio is not set in stone. Higher growth expectations can justify higher PE ratios since investors are willing to pay up for future expansion, while risks like economic uncertainty or slowing earnings can bring the ratio down.

Gartner’s current PE ratio stands at 14.8x, which is notably below the IT industry average of 32.2x and the peer group average of 21.4x. While these comparisons can be helpful, they tend to ignore the specifics that matter most to each business.

This is where the proprietary “Fair Ratio” from Simply Wall St comes in. The Fair Ratio, calculated at 22.0x for Gartner, reflects a tailored benchmark factoring in unique drivers such as its recent earnings growth, profit margin, industry norms, market cap, and company-specific risks. This makes it a more effective tool than simple peer or industry averages because it is grounded in the real traits and prospects of the business rather than just similarities on paper.

Given Gartner’s actual PE is 14.8x while the Fair Ratio is 22.0x, the stock trades noticeably below its custom fair value benchmark, which may indicate potential undervaluation if the market outlook stabilizes.

Result: UNDERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth .

Earlier we mentioned that there's an even better way to understand valuation, so let's introduce you to Narratives. A Narrative is simply your own story about a company like Gartner, the reasons and logic you believe make it valuable, along with clear assumptions about where its revenue, earnings, and margins might go in the future. Rather than relying on just one official estimate, Narratives empower you to connect Gartner’s business outlook to a specific financial forecast. This forecast is then instantly used to calculate your own Fair Value for the stock.

This approach is both straightforward and flexible. On Simply Wall St’s platform, Narratives are available on the Community page and used by millions of investors. They make it easy to compare your point of view with that of other investors and professionals, and help you make buy or sell decisions by showing when the Fair Value based on your Narrative is above or below today's share price. Narratives are dynamic too, updating automatically whenever fresh news or results are released, so your view stays relevant in real time.

For example, the most optimistic Narrative for Gartner right now sets a Fair Value at $457.00, reflecting strong belief in industry tailwinds and margin recovery. The least bullish sees Fair Value at just $225.00, suggesting skepticism about growth and persistent challenges. This highlights how Narratives make different perspectives actionable in a clear, side-by-side way.

Do you think there's more to the story for Gartner? Create your own Narrative to let the Community know!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include IT .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Our Discounted Cash Flow (DCF) analysis suggests Gartner may be overvalued by 10.3%. Find undervalued stocks or create your own screener to find better value opportunities.

For companies like Gartner that consistently generate profits, the Price-to-Earnings (PE) ratio remains the go-to tool for stock valuation. The PE ratio allows investors to quickly gauge how much they are paying for each dollar of current earnings, and it tends to work especially well for established, profitable businesses.

That said, what counts as a “normal” or “fair” PE ratio is not set in stone. Higher growth expectations can justify higher PE ratios since investors are willing to pay up for future expansion, while risks like economic uncertainty or slowing earnings can bring the ratio down.

Gartner’s current PE ratio stands at 14.8x, which is notably below the IT industry average of 32.2x and the peer group average of 21.4x. While these comparisons can be helpful, they tend to ignore the specifics that matter most to each business.

This is where the proprietary “Fair Ratio” from Simply Wall St comes in. The Fair Ratio, calculated at 22.0x for Gartner, reflects a tailored benchmark factoring in unique drivers such as its recent earnings growth, profit margin, industry norms, market cap, and company-specific risks. This makes it a more effective tool than simple peer or industry averages because it is grounded in the real traits and prospects of the business rather than just similarities on paper.

Given Gartner’s actual PE is 14.8x while the Fair Ratio is 22.0x, the stock trades noticeably below its custom fair value benchmark, which may indicate potential undervaluation if the market outlook stabilizes.

Result: UNDERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth .

Earlier we mentioned that there's an even better way to understand valuation, so let's introduce you to Narratives. A Narrative is simply your own story about a company like Gartner, the reasons and logic you believe make it valuable, along with clear assumptions about where its revenue, earnings, and margins might go in the future. Rather than relying on just one official estimate, Narratives empower you to connect Gartner’s business outlook to a specific financial forecast. This forecast is then instantly used to calculate your own Fair Value for the stock.

This approach is both straightforward and flexible. On Simply Wall St’s platform, Narratives are available on the Community page and used by millions of investors. They make it easy to compare your point of view with that of other investors and professionals, and help you make buy or sell decisions by showing when the Fair Value based on your Narrative is above or below today's share price. Narratives are dynamic too, updating automatically whenever fresh news or results are released, so your view stays relevant in real time.

For example, the most optimistic Narrative for Gartner right now sets a Fair Value at $457.00, reflecting strong belief in industry tailwinds and margin recovery. The least bullish sees Fair Value at just $225.00, suggesting skepticism about growth and persistent challenges. This highlights how Narratives make different perspectives actionable in a clear, side-by-side way.

Do you think there's more to the story for Gartner? Create your own Narrative to let the Community know!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include IT .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com