Gartner Trades 65% Below Year High with 10.5% Cash Flow Yield
Gartner generates a 10.5% free cash flow yield and 3.7% LTM revenue growth, yet trades 37% below its 3-month high, 65% below its 1-year high and 72% below its 2-year high. Its PE ratio of 15.4 compares with a sector median of 24.0, highlighting valuation headroom.
1. Strong Cash Flow and Yield
Gartner delivers a free cash flow yield of 10.5%, more than double the S&P Information Technology median of 4.3%, providing ample flexibility for dividends, buybacks or growth investments.
2. Deep Valuation Discounts
Shares are trading 37% below their 3-month high, 65% below the 1-year high and 72% below the 2-year high, undercutting PS and PE multiples relative to industry norms.
3. Revenue Growth and Profitability
Revenue rose 3.7% over the last twelve months versus a sector median of 6.8%, while operating margin stood at 18.1%, just below the 18.6% industry mark.
4. Historical Risk Profile
The stock has suffered drawdowns in past crises—over 75% in the Dot-Com crash, 70% in the GFC and nearly 50% during COVID—underscoring susceptibility to market sell-offs.