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IT Gartner

software · valued with glm-5.2 medium conviction · deep-dived 2026-09-22

STRONG BUY
Intrinsic value$222.85
Price (at call)$183.32
Margin of safety +21.6%
vs market (rating basis) +93.1%

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The story

Value drivers

Revenue growth (Y1)5.9%
Terminal growth3.5%
Forecast horizon10y
Target operating margin17.4%
Years to target margin5
Sales-to-capital1.96
Beta0.95
Failure probability0.0%
Cost of capital (WACC)8.4%
Terminal WACC8.5%

Valuation bridge

PV of explicit FCFF5.93B
PV of terminal value9.40B
Equity value14.07B
÷ shares → per share$222.85

News

neutral +0.15 · 8 articles

  • 1 Safe-and-Steady Stock to Research Further and 2 We Ignore
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  • Check Point Software Technologies (CHKP) Stock Could Be Below Fair Value After 33% Fall
  • eGain (EGAN): B. Riley and Roth Capital Both Cut Targets as AI Growth Struggles to Offset Legacy Declines
  • Here's Why Investors Must Hold WCN Stock in Their Portfolios Now
  • Here's Why You Should Hold on to Republic Services Stock for Now
  • Everpure Stock Gains 34% in 6 Months: Here's What You Should Know
  • The Bull Case For Nutanix (NTNX) Could Change Following New Gartner Nod And Parallels Deal

Projected free cash flow to the firm

YrRevenueGrowthMarginNOPATReinvestFCFFPV
1 6.85B 5.9% 17.4% 898.26M 193.69M 704.57M 650.25M
2 7.24B 5.6% 17.4% 948.59M 195.86M 752.73M 641.14M
3 7.62B 5.3% 17.4% 999.26M 197.13M 802.12M 630.54M
4 8.01B 5.1% 17.4% 1.05B 197.44M 852.56M 618.51M
5 8.40B 4.8% 17.4% 1.10B 196.72M 903.83M 605.16M
6 8.78B 4.6% 17.4% 1.15B 194.93M 955.72M 590.56M
7 9.16B 4.3% 17.4% 1.20B 192.03M 1.01B 574.83M
8 9.52B 4.0% 17.4% 1.25B 187.98M 1.06B 558.07M
9 9.88B 3.8% 17.4% 1.30B 182.78M 1.11B 540.39M
10 10.23B 3.5% 17.4% 1.34B 176.40M 1.16B 521.90M

History

DatePriceIntrinsicMoSRating
2026-09-22$183.32 $222.85 +21.6% STRONG BUY
2026-08-19$182.07 $237.33 +30.3% STRONG BUY
2026-07-14$141.31 $247.10 +74.9% STRONG BUY
2026-06-23$129.18 $279.62 +116.5% STRONG BUY