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Gartner (Gartner) Cyclically Adjusted Price-to-FCF : 56.81 (As of Apr. 27, 2024)


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What is Gartner Cyclically Adjusted Price-to-FCF?

As of today (2024-04-27), Gartner's current share price is $448.78. Gartner's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $7.90. Gartner's Cyclically Adjusted Price-to-FCF for today is 56.81.

The historical rank and industry rank for Gartner's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

IT' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 25.85   Med: 45.14   Max: 66.53
Current: 56.83

During the past years, Gartner's highest Cyclically Adjusted Price-to-FCF was 66.53. The lowest was 25.85. And the median was 45.14.

IT's Cyclically Adjusted Price-to-FCF is ranked worse than
69.7% of 670 companies
in the Software industry
Industry Median: 28.305 vs IT: 56.83

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Gartner's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $2.481. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $7.90 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Gartner Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Gartner's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Gartner Cyclically Adjusted Price-to-FCF Chart

Gartner Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 47.82 40.43 61.20 49.93 57.13

Gartner Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 49.93 46.46 47.02 44.25 57.13

Competitive Comparison of Gartner's Cyclically Adjusted Price-to-FCF

For the Information Technology Services subindustry, Gartner's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Gartner's Cyclically Adjusted Price-to-FCF Distribution in the Software Industry

For the Software industry and Technology sector, Gartner's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Gartner's Cyclically Adjusted Price-to-FCF falls into.



Gartner Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Gartner's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=448.78/7.9
=56.81

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Gartner's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Gartner's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=2.481/129.4194*129.4194
=2.481

Current CPI (Dec. 2023) = 129.4194.

Gartner Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.078 99.695 0.101
201406 1.392 100.560 1.791
201409 1.299 100.428 1.674
201412 0.654 99.070 0.854
201503 -0.068 99.621 -0.088
201506 1.564 100.684 2.010
201509 1.242 100.392 1.601
201512 0.825 99.792 1.070
201603 0.081 100.470 0.104
201606 1.549 101.688 1.971
201609 1.300 101.861 1.652
201612 0.838 101.863 1.065
201703 -0.479 102.862 -0.603
201706 0.912 103.349 1.142
201709 1.275 104.136 1.585
201712 -0.134 104.011 -0.167
201803 -0.164 105.290 -0.202
201806 1.645 106.317 2.002
201809 2.439 106.507 2.964
201812 -0.186 105.998 -0.227
201903 0.171 107.251 0.206
201906 2.062 108.070 2.469
201909 2.017 108.329 2.410
201912 0.326 108.420 0.389
202003 0.347 108.902 0.412
202006 3.585 108.767 4.266
202009 2.545 109.815 2.999
202012 2.636 109.897 3.104
202103 1.624 111.754 1.881
202106 6.506 114.631 7.345
202109 3.903 115.734 4.365
202112 2.545 117.630 2.800
202203 1.814 121.301 1.935
202206 4.872 125.017 5.044
202209 3.533 125.227 3.651
202212 2.065 125.222 2.134
202303 1.788 127.348 1.817
202306 5.139 128.729 5.167
202309 3.804 129.860 3.791
202312 2.481 129.419 2.481

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Gartner  (NYSE:IT) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Gartner Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Gartner's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Gartner (Gartner) Business Description

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Based in Stamford, Conn., Gartner provides independent research and analysis on information technology and other related technology industries. Its research is delivered to clients' desktops in the form of reports, briefings, and updates. Typical clients are chief information officers and other business executives who help plan companies' IT budgets. Gartner also provides consulting services and hosted nearly 80 IT conferences across the globe in 2007.
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