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Gartner (NYSE:IT) PS Ratio

: 5.31 (As of Today)
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The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Gartner's share price is $341.95. Gartner's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2022 was $64.42. Hence, Gartner's PS Ratio for today is 5.31.

Warning Sign:

Gartner Inc stock PS Ratio (=5.31) is close to 1-year high of 5.46

The historical rank and industry rank for Gartner's PS Ratio or its related term are showing as below:

IT' s PS Ratio Range Over the Past 10 Years
Min: 1.76   Med: 3.51   Max: 6.45
Current: 5.31

During the past 13 years, Gartner's highest PS Ratio was 6.45. The lowest was 1.76. And the median was 3.51.

IT's PS Ratio is ranked worse than
72.91% of 2654 companies
in the Software industry
Industry Median: 2.55 vs IT: 5.31

Gartner's Revenue per Sharefor the three months ended in Sep. 2022 was $16.64. Its Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2022 was $64.42.

Good Sign:

Gartner Inc has shown predictable revenue and earnings growth.

During the past 12 months, the average Revenue per Share Growth Rate of Gartner was 24.20% per year. During the past 3 years, the average Revenue per Share Growth Rate was 8.40% per year. During the past 5 years, the average Revenue per Share Growth Rate was 11.70% per year. During the past 10 years, the average Revenue per Share Growth Rate was 14.50% per year.

During the past 13 years, Gartner's highest 3-Year average Revenue per Share Growth Rate was 35.60% per year. The lowest was -14.20% per year. And the median was 14.05% per year.

Back to Basics: PS Ratio


Gartner PS Ratio Historical Data

The historical data trend for Gartner's PS Ratio 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 Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
PS Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.34 2.96 3.30 3.52 6.09

Gartner Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
PS Ratio 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 Premium Member Only Premium Member Only Premium Member Only 5.86 6.09 5.14 3.94 4.30

Competitive Comparison

For the Information Technology Services subindustry, Gartner's PS Ratio, along with its competitors' market caps and PS Ratio 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 PS Ratio Distribution

For the Software industry and Technology sector, Gartner's PS Ratio distribution charts can be found below:

* The bar in red indicates where Gartner's PS Ratio falls in comparison to its industry or sector. The grey bar indicates the PS Ratio's extreme value range as defined by GuruFocus.



Gartner PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

Gartner's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=341.95/64.419
=5.31

Gartner's Share Price of today is $341.95.
Gartner's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $64.42.

* 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.

It can also be calculated from the numbers for the whole company:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Gartner  (NYSE:IT) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Gartner PS Ratio Related Terms

Thank you for viewing the detailed overview of Gartner's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Gartner (NYSE:IT) Business Description

Gartner logo
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
Valentin Sribar officer: SVP, Research & Advisory 56 TOP GALLANT ROAD, STAMFORD CT 06902
Diana Sue Ferguson director C/O SARA LEE CORP, 70 W MADISO ST, CHICAGO IL 60602
Claire Herkes officer: EVP, Conferences 56 TOP GALLANT ROAD, STAMFORD CT 06902
Akhil Jain officer: SVP, Consulting 56 TOP GALLANT ROAD, STAMFORD CT 06902
Yvonne Genovese officer: EVP, Global Product Management 56 TOP GALLANT ROAD, STAMFORD CT 06902
Kenneth Allard officer: SVP, New Market Programs 56 TOP GALLANT, STAMFORD CT 06902
Jules Kaufman officer: EVP, GC 56 TOP GALLANT ROAD, STAMFORD CT 06904
Craig Safian officer: EVP & CFO 56 TOP GALLANT ROAD, STAMFORD CT 06904
Alwyn Dawkins officer: EVP, Conferences 56 TOP GALLANT ROAD, STAMFORD CT 06902
Michael P Harris officer: EVP, Research & Advisory 56 TOP GALLANT ROAD, STAMFORD CT 06896
Joseph P. Beck officer: EVP, Global Technology Sales 56 TOP GALLANT RD., STAMFORD CT 06902
Scott Hensel officer: EVP Consulting C/O GARTNER, INC., 56 TOP GALLANT RD., STAMFORD CT 06902
Eileen Serra director 56 TOP GALLANT RD., STAMFORD CT 06902
Peter Bisson director ONE ADP BOULEVARD, ROSELAND NJ 07068
Michael Fox Diliberto officer: SVP, Chief Information Officer 56 TOP GALLANT RD, STAMFORD CT 06904

Gartner (NYSE:IT) Headlines

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