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Gartner (Gartner) Owner Earnings per Share (TTM) : 11.30 (As of Mar. 2024)


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What is Gartner Owner Earnings per Share (TTM)?

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Gartner's Owner Earnings per Share (TTM) ended in Mar. 2024 was $11.30. It's Price-to-Owner-Earnings ratio for today is 39.85.


The historical rank and industry rank for Gartner's Owner Earnings per Share (TTM) or its related term are showing as below:

IT' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 18.61   Med: 28.27   Max: 116.89
Current: 39.83


During the past 13 years, the highest Price-to-Owner-Earnings ratio of Gartner was 116.89. The lowest was 18.61. And the median was 28.27.


IT's Price-to-Owner-Earnings is ranked worse than
69.54% of 1031 companies
in the Software industry
Industry Median: 23.25 vs IT: 39.83

Gartner's Earnings per Share (Diluted) for the three months ended in Mar. 2024 was $2.67. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2024 was $10.05. It's PE Ratio ratio for today is 44.80.

Gartner's EPS without NRI for the three months ended in Mar. 2024 was $2.68. Its EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2024 was $10.43. It's PE Ratio without NRI ratio for today is 43.18.


Gartner Owner Earnings per Share (TTM) Historical Data

The historical data trend for Gartner's Owner Earnings per Share (TTM) 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 Owner Earnings per Share (TTM) Chart

Gartner Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Owner Earnings per Share (TTM)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.76 6.88 12.19 10.67 12.62

Gartner Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Owner Earnings per Share (TTM) 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 11.98 12.13 12.21 12.62 11.30

Competitive Comparison of Gartner's Owner Earnings per Share (TTM)

For the Information Technology Services subindustry, Gartner's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings 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 Price-to-Owner-Earnings Distribution in the Software Industry

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

* The bar in red indicates where Gartner's Price-to-Owner-Earnings falls into.



Gartner Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Gartner's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 797
Depreciation, Depletion and Amortization 194
Change In Deferred Tax -74
5Y Average of Maintenance Capital Expenditure 72
Change In Working Capital 48
Shares Outstanding (Diluted Average) 79

1. Start with "Net Income" from income statement. Gartner's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was $797 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Gartner's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Mar. 2024 was $194 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Gartner's Change In Deferred Tax for the trailing twelve months (TTM) ended in Mar. 2024 was $-74 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $72 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous quarter. If the revenue decreased from the previous quarter, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous quarter, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Gartner's 5-Year Average Maintenance Capital Expenditure = $72 Mil

5. "Change In Working Capital" is from cashflow statement. Gartner's Change In Working Capital for the trailing twelve months (TTM) ended in Mar. 2024 was $48 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Gartner's Shares Outstanding (Diluted Average) for the months ended in Mar. 2024 was 78.964 Mil.

Gartner's Onwer Earnings Per Share for Mar. 2024 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 797.228 +193.779+-74.13
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-72.043739063553+47.767)/78.964
=11.30

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=450.26/11.30
=39.85

* 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.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Gartner Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Gartner's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Gartner (Gartner) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » Gartner Inc (NYSE:IT) » Definitions » Owner Earnings per Share (TTM)
Traded in Other Exchanges
Address
56 Top Gallant Road, P.O. Box 10212, Stamford, CT, USA, 06902-7700
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.
Executives
Claire Herkes officer: EVP, Conferences 56 TOP GALLANT ROAD, STAMFORD CT 06902
Robin B Kranich officer: SVP,Research Ops & Bus Dvlpmt 56 TOP GALLANT RD, STAMFORD CT 06902
Craig Safian officer: EVP & CFO 56 TOP GALLANT ROAD, STAMFORD CT 06904
Valentin Sribar officer: SVP, Research & Advisory 56 TOP GALLANT ROAD, STAMFORD CT 06902
Alwyn Dawkins officer: EVP, Conferences 56 TOP GALLANT ROAD, STAMFORD CT 06902
Akhil Jain officer: SVP, Consulting 56 TOP GALLANT ROAD, STAMFORD CT 06902
Richard J Bressler director 1515 BROADWAY, NEW YORK NY 10036
James C Smith director C/O FIRST HEALTH GROUP CORP, 3200 HIGHLAND AVENUE, DOWNERS GROVE IL 60515
Wartinbee William James Iii officer: SVP, Global Sales Strat & Ops 56 TOP GALLANT ROAD, STAMFORD CT 06902
Anne Sutherland Fuchs director
Joseph P. Beck officer: EVP, Global Technology Sales 56 TOP GALLANT RD., STAMFORD CT 06902
Eugene A Hall director, officer: CEO ONE ADP BLVD, ROSELAND NJ 07068
Altaf Rupani officer: EVP, Chief Information Officer 56 TOP GALLANT RD, STAMFORD CT 06902
Michael Fox Diliberto officer: SVP, Chief Information Officer 56 TOP GALLANT RD, STAMFORD CT 06904
Scott Hensel officer: EVP Consulting C/O GARTNER, INC., 56 TOP GALLANT RD., STAMFORD CT 06902