Author argues Gartner is undervalued at 15x earnings and 8% FCF yield with a durable moat, despite real AI-disruption fears.
IT — LONG The author argues Gartner offers a genuine decades-old moat (Magic Quadrant, Hype Cycle, C-suite relationships) at 15x earnings and an 8% FCF yield, a valuation the market only gives when genuinely scared. He notes the company spent $2B in buybacks at $286/share. The fear around AI disruption and weak guidance is real but not yet proven fatal. Main risk is that AI disruption could prove fatal to the business.
You're buying a company with a genuine, decades-old moat, the Magic Quadrant, the Hype Cycle, trusted C-suite relationships @ 15x earnings and an 8% FCF yield.