Gartner Offers 10.5% Cash Flow Yield While Trading 72% Below Two-Year High
Gartner offers 10.5% free cash flow yield and 3.7% last-twelve-months revenue growth while trading 37%, 65% and 72% below its 3-month, 1-year and 2-year highs. Its 15.4 P/E and 1.7 PS ratios are well below S&P medians of 24.0 and 3.2.
1. Fundamentals and Growth
Gartner delivered a 10.5% free cash flow yield and 3.7% revenue growth over the last twelve months, with an operating margin of 18.1% compared to the S&P median of 18.6%.
2. Valuation Discounts and Ratios
The stock trades at 37% below its 3-month high, 65% below its 1-year high and 72% below its 2-year high, while sporting a 15.4 P/E and 1.7 PS ratio versus S&P medians of 24.0 and 3.2.
3. Historical Drawdowns
Gartner has experienced major drawdowns in past market downturns, including drops of over 75% during the dot-com crash, 70% during the financial crisis and nearly 50% in the Covid sell-off, underscoring potential volatility.