Gartner, Inc. IT
Verdict: Sell. Fair value $241 against a price of $239 on 6 Jan 2026, 1% above the price.
In plain words
The case for: Narrow competitive moat provides durability. Market leadership enables pricing power. Industry tailwinds with growing market.
The case against: The OCF / Net Income ratio, while still very strong and above 1.0, has declined sequentially over....
Main risks
- Extremely high leverage (Debt/Equity > 2.1) creates significant financial risk, especially in a rising rate environment.
- Proxy-based 3-year ROIIC is negative (-1.4%), a severe red flag suggesting that incremental capital invested over the period may have been value-destructive.
- Decelerating annual revenue growth, slowing from 15.9% in 2022 to 6.1% in 2024, indicates potential market maturation or competitive pressures.
- Overhang: Slower contract growth and 'AI jitters' leading to a reduced revenue outlook, creating unc...
- Sentiment trend deteriorating
- Market volatility