Gartner scores 98 for management and 60 for moat. The management score rests on a return on invested capital of 18.8% and a gross margin of 67.7% — figures that describe a business turning capital into profit efficiently. The balance sheet carries debt at 11.31x equity, which magnifies both the returns above and the risk beneath them. A solid moat alongside exceptional management is a combination worth understanding before the price matters at all.
The price anchors are built on deliberately conservative assumptions. Growth is modelled at 9.6% a year, below the 10.0% actually measured over the last decade — the model caps growth rather than extrapolating a good run forwards. The exit multiple assumed is 19.3x. That produces an intrinsic value of $133.60, a 10-CAP price of $197.81 and a payback time price of $244.89, with the value zone set at the highest of the three, $244.89. Today's price of $192.80 sits inside that zone.
Gartner currently reads as a strong business at a price the model supports. That is rare enough to warrant asking what the market sees that these figures do not.
| Price | $192.80 |
| Market cap | $12.9B |
| P/E ratio | 17.3x |
| Return on invested capital | 18.8% |
| Gross margin | 67.7% |
| Debt to equity | 11.31x |
| Free cash flow yield | 6.5% |
| Growth rate used | 9.6% |
| Growth rate measured | 10.0% |
| Exit multiple assumed | 19.3x |
| Company | Moat | Buy price |
| Leidos (LDOS) | 86 | $189.74 |
| Jack Henry & Associates (JKHY) | 82 | $110.25 |
| CDW (CDW) | 48 | $90.50 |
| Broadridge Financial Solutions (BR) | 95 | $134.87 |
Every number above is built on assumptions that can be changed. In Moatly you can move the growth rate, the exit multiple and the margin of safety and watch every figure recalculate, so you are testing your own view of Gartner rather than accepting ours.