Gartner

Methodology

Gartner's research and advisory services business generates highly predictable earnings from subscription-based research contracts with corporate IT and business executives. The company's essential role in technology purchasing decisions creates strong retention. This calculation works very well given the subscription revenue model and consistent renewal rates driving visible double-digit earnings growth.

Methodology

Gartner typically commands premium PEG ratios reflecting its near-monopoly in IT research advisory, recurring revenue model, and consistent execution. The company's network effects and switching costs justify high multiples. Compare to other business information services to assess whether Gartner's research franchise and client dependency warrant its valuation premium.

Methodology

Gartner does not pay dividends, prioritizing strategic investments in research capabilities, conferences expansion, and selective acquisitions to broaden advisory services. Management focuses on reinvestment and share buybacks. Total return depends on Gartner's ability to expand wallet share with existing clients and penetrate new decision-maker segments beyond traditional IT buyers.