IT Value Scorecard - Gartner

Value Scorecard · run 2026-10-18

13 value checks: 12 scored 1 to 5, plus moat evidence

40/60

moderate value score

Earnings & returns

EPS Trend

2/5

Diluted EPS: $9.96 (2022), $11.08 (2023), $16.00 (2024), $9.65 (2025). It ended at or below 2022; the framework scores that as 2.

ROE Trend

5/5

ROE (net income / common equity): 354.6% (2022), 129.7% (2023), 92.2% (2024), 228.0% (2025). Median 178.8%, lowest 92.2%; the framework scores a median above 20% as 5.

ROIC

5/5

ROIC of 25.6%: operating income of $1.03B divided by $4.01B of capital (total assets $8.09B minus current liabilities $4.07B), fiscal year to Dec 31, 2025, as filed in the 10-K (SEC EDGAR). The framework scores above 20% as 5.

Profit Margins

4/5

Net margin of 12.0%; the framework scores 10-20% as 4; gross margin 69.6%, operating margin 22.6%.

Balance sheet & cash

Debt-to-Equity

1/5

Debt-to-equity of 51.41; the framework scores above 2.5 as 1 (total debt $3.33B, total cash $1.49B). Calculated from the balance sheet in yfinance (at Mar 31, 2026) because yfinance's summary figure was not available.

Free Cash Flow

4/5

Free cash flow (operating cash flow minus capital expenditure): $993.37M (2022), $1.05B (2023), $1.38B (2024), $1.18B (2025). It rose every year but one and ended above 2022; the framework scores that as 4.

Retained Earnings

5/5

Retained earnings, as filed in the 10-Ks (SEC EDGAR): $3.86B (2022), $4.74B (2023), $5.99B (2024), $6.72B (2025). It rose every year; the framework scores that as 5.

Valuation models

Graham IV

1/5

IV = EPS x (8.5 + 2g) x (4.4 / Y) = $11.06 x (8.5 + 2 x 0.0) x (4.4 / 4.5) = $91.92 (EPS CAGR -6.7% floored at 0%; the formula returns a negative value below -4.25% growth). Current price $205.35; price is 123.4% above the model value.

DCF Value

4/5

FCF/share = $16.668, stage 1 growth = 4.9% for 5 years, terminal growth = 3%, discount rate = 10%. Stage 1 PV = $72.44, PV of terminal value = $193.43, DCF value = $265.87. Current price $205.35; price is 22.8% below the model value.

Margin of Safety

3/5

Graham value $91.92 (price is 123.4% above the model value); DCF value $265.87 (price is 22.8% below the model value).

Price-to-Book

1/5

Book value is negative; the framework scores negative book value as 1.

Business quality

Moat Evidence

Not scored

A moat (a brand, a network, switching costs, patents, scale, a licence) is not a number in the filings, so Valerius doesn’t score it. Below are the figures and the words moat analysis starts from, from the company’s own 10-K filings. The conclusion is yours.

Return on capital, each year

Above 15% in 6 of 10 years (2016-2025); lowest -0.1%, highest 33.6%.

Gross margin, each year

Between 60.1% and 69.7% over 10 years (a range of 9.6 points).

Competition, in the company’s own words · 10-K filed Feb 12, 2026

We believe that the principal factors that differentiate us from our competitors are as follows: • Superior content - We believe that we create the broadest, highest-quality and most relevant insights coverage across all major functional roles in an enterprise. Our independent operating model and research analysis generates unbiased insights that we believe are timely, thought-provoking, comprehensive and

The opening of the company’s “COMPETITION” section in its 10-K, quoted word for word, not summarized or edited. It is the company’s own description, not Valerius’s view, and may include the company’s expectations. Open the filing.

Return on capital = operating income / (total assets − current liabilities), the ROIC row’s definition; 15% is the framework’s return threshold. Gross margin = gross profit / revenue. Both from each year’s 10-K via SEC EDGAR. Moat analysis commonly looks at whether returns and margins held up over many years. These figures don’t say whether the company has an advantage, what it is, or whether it will last.

Capital Allocation

5/5

Capital allocation, 2022-2025: dividends or buybacks paid in every year (pass); $4.38B paid out against $4.60B of free cash flow (pass); total debt $3.16B to $3.35B, up 6.0%, 2.6x EBITDA (pass: not up more than 10%); shares outstanding 0.08B to 0.07B, down 10.5% (pass). 4 of 4 tests passed; the framework scores that as 5.

Filings

Company notices to the SEC

Not scored

Three kinds of event the company reported to the SEC in the last 5 years, from its filings on SEC EDGAR.

These are events the company reported to the SEC. An auditor change or a late filing can have many causes; each date links to the filing, where the company explains it. Valerius does not score these.

How the Graham and DCF values were calculated

  Graham Formula:
    IV = EPS x (8.5 + 2g) x (4.4 / Y)
    EPS = $11.06, g = 0.0%, Y = 4.5
    g floored at 0.0% (3-year EPS CAGR was -6.7%; below -4.25% the formula returns a negative value)
    IV = $91.92
    Current price $205.35 vs Graham value $91.92 — price is 123.4% above the model value.

  DCF:
    FCF/share = $16.668
    Stage 1 growth = 4.9% for 5 years | terminal growth = 3.0% | discount rate = 10.0%
      Y1: $17.484 → PV $15.895
      Y2: $18.341 → PV $15.158
      Y3: $19.240 → PV $14.455
      Y4: $20.183 → PV $13.785
      Y5: $21.172 → PV $13.146
    Stage 1 PV sum = $72.44
    Terminal value at end of Y5 = $311.53
    PV of terminal value = $193.43
    DCF value = $265.87
    Current price $205.35 vs DCF value $265.87 — price is 22.8% below the model value.

Data from yfinance summary figures and financial statements, and from the company’s 10-K filings via SEC EDGAR; computed at a price of $205.35. Every score is calculated from the figures by the framework’s fixed rules, and the explanation beside it is generated from the same figures: Graham value, DCF value, margin of safety, ROIC, profit margins, debt-to-equity, price-to-book, EPS trend, ROE trend, free cash flow, retained earnings and capital allocation. No AI is involved in this scorecard. The moat is shown as evidence, without a score. Read each score with the figures beside it. Intrinsic value calculations are model outputs based on stated assumptions, not predictions.

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