| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 253.50 | 21 |
| Intrinsic value (DCF) | 206.22 | -1 |
| Graham-Dodd Method | 46.00 | -78 |
| Graham Formula | 172.60 | -18 |
Gartner, Inc. (LSE: 0ITV.L) is a leading global research and advisory firm specializing in technology and business insights. Headquartered in Stamford, Connecticut, Gartner operates across three core segments: Research, Conferences, and Consulting. The Research segment provides subscription-based access to proprietary data, benchmarks, and expert analysis, helping enterprises make informed IT and business decisions. The Conferences segment hosts industry-leading events that facilitate networking and knowledge-sharing among professionals. The Consulting segment delivers tailored solutions for IT cost optimization, digital transformation, and sourcing strategies. Founded in 1979, Gartner serves a diverse clientele across North America, Europe, the Middle East, Africa, and other international markets. As a key player in the Software - Services sector, Gartner is renowned for its thought leadership and data-driven advisory services, making it indispensable for enterprises navigating digital disruption.
Gartner presents a compelling investment case due to its strong market position, recurring revenue model, and high-margin research business. With a market cap of $33.75B and robust financials—including $6.27B in revenue and $1.25B in net income—the company demonstrates consistent profitability. Its subscription-based Research segment ensures stable cash flows, while its Conferences and Consulting segments offer growth opportunities. However, investors should note Gartner's high beta (1.239), indicating sensitivity to market volatility, and its reliance on corporate IT spending, which could be impacted by economic downturns. The absence of dividends may deter income-focused investors, but the company's strong operating cash flow ($1.48B) and solid balance sheet ($1.93B in cash) underscore financial resilience.
Gartner dominates the technology research and advisory space, leveraging its brand authority, extensive research repository, and global expert network. Its competitive advantage lies in its subscription-based model, which ensures high client retention and predictable revenue. Unlike pure-play consultancies, Gartner combines data-driven insights with actionable advisory services, creating a differentiated value proposition. However, the company faces competition from firms specializing in niche IT research (e.g., Forrester) and broader consulting giants (e.g., Accenture). Gartner's Conferences segment is a key differentiator, fostering client engagement and thought leadership. While its high pricing may limit penetration in cost-sensitive markets, its focus on enterprise clients mitigates this risk. The company’s debt ($2.9B) is manageable relative to its cash position, but competitors with stronger balance sheets could pose challenges in aggressive expansion scenarios.