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Gartner, Inc. (IT) — WACC Analysis

WACC Breakdown

Gartner, Inc. (IT) has a weighted average cost of capital (WACC) of 7.9%. The cost of equity is 8.9%, derived from a beta of 0.98 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.8%. The capital structure is 80.8% equity and 19.2% debt.

Interpretation

A WACC of 7.9% suggests that the market views Gartner, Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare IT's WACC of 7.9% against industry peers to gauge its relative financing costs. A beta of 0.98 reflects the stock's volatility relative to the broader market.

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VALUATION

IT WACC: 7.92% for Gartner, Inc.

Current inputs imply a 8.90% cost of equity and a 4.81% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Gartner, Inc. Common Stock (IT) WACC Results
Weighted Average Cost of Capital
7.92%
Cost of Equity
8.90%
Risk-Free Rate4.73%
Beta0.98
Market Risk Premium4.23%
Cost of Debt
3.80%
Pre-Tax Cost of Debt4.81%
Tax Rate21.00%
Tax Shield1.01%
Capital Structure
Equity: 80.77%($12.51B)
Debt: 19.23%($2979.28M)
Equity Component
7.19%
80.77% × 8.90%
Debt Component
0.73%
19.23% × 3.80%

Gartner, Inc. (IT) WACC in context

Gartner, Inc. (IT) currently screens with an estimated WACC of 7.92%. That blends a 8.90% cost of equity, a 4.81% pre-tax cost of debt, and a 80.77% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What IT WACC implies

A 7.92% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates IT

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.98 and equity accounts for 80.77% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.