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Gartner’s share price has fallen sharply over the past year, yet on Simply Wall St’s checks the stock still screens as undervalued, setting up a clear tension between weak recent returns and what the valuation work suggests.
Over the past 12 months, Gartner’s stock is down 65.8%, which means recent shareholders have worn a heavy drawdown.
On the upside, Gartner’s research around trends such as agentic AI and digital transformation can support expectations that its insights and benchmarking services remain relevant. At the same time, an investigation into potential fiduciary duty breaches introduces legal and reputational risk that investors need to factor into any valuation view.
Gartner scores highly on Simply Wall St’s broader valuation checks, with the stock looking undervalued on 5 out of 6 metrics, which leans toward the shares being cheap rather than fully priced.
The stock’s next move may depend on whether the current discount to these valuation checks reflects temporary pessimism or a more lasting reset in how the market prices Gartner.
Find out why Gartner’s -65.8% return over the last year is lagging behind its peers.
Is Gartner Still Cheap on Earnings?
P/E is a useful lens for Gartner because earnings are a central focus for how many investors look at research and advisory stocks. On this measure, Gartner trades on a P/E of about 12.0x, very close to the peer group average of 11.1x and well below the broader IT industry average of 17.8x, so at first glance the stock does not look aggressively priced.
A more tailored check that factors in Gartner’s size, margins, sector and risk profile points to a fair P/E ratio of about 26.2x, which is more than double the current multiple. Despite headlines around agentic AI disruption and the legal investigation into possible fiduciary duty breaches, the market is pricing Gartner’s earnings at a level that sits at a discount to both this fair ratio and the wider industry benchmark.
On the P/E multiple, Gartner stock screens as undervalued relative to what the fair ratio model suggests investors might usually pay for its earnings.
NYSE:IT P/E Ratio as at Jul 2026
See what the numbers say about this price — find out in our valuation breakdown.
The Gartner Narrative: What Would Justify Today’s Price?
Simply Wall St Narratives for Gartner pick up where the valuation puzzle leaves off by spelling out which assumptions about Gartner’s future growth, margins and earnings would need to hold for the stock to be worth materially more or less than its current price. Hosted on Simply Wall St’s Community page, each narrative links a specific set of potential catalysts and risks to an estimated fair value, so you can track over time which version of the story appears to be unfolding.
Gartner attracts sharply different community views, with one camp leaning into its AI tools and data depth while the other focuses on disruption risks and contract value pressure.
Bull case: 33% undervalued
“Gartner’s proprietary AI initiatives, most notably the rollout of AskGartner across its licensed base and over 50 internal AI applications, should deliver step-function gains in client adoption, platform stickiness, and operational leverage…”
Read the full Bull Case to see why Gartner could be undervalued
Bear case: 5% overvalued
“The increasing democratization of high-quality information, particularly through the proliferation and rapid improvement of free AI-powered research tools, threatens to erode Gartner’s proprietary data advantage, undercutting both its pricing power and future top-line growth as clients migrate toward lower-cost or in-house alternatives…”
Read the full Bear Case to see why Gartner could be overvalued
Do you think there’s more to the story for Gartner? Head over to our Community to see what others are saying!
The Bottom Line
Gartner screens as undervalued on market multiples, with the current P/E sitting below both the tailored fair ratio and the broader industry benchmark. That gap can either be a cushion for patient investors or a signal that the market is baking in lasting pressure from AI driven disruption and the fiduciary duty investigation. The key question from here is whether Gartner can sustain the relevance and pricing power of its research and advisory services, so that the current discount reflects caution rather than a value trap.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include IT.
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