Information Services Group, Inc. (III) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-53.3%

$2.93

vs $6.28 price

Levered DCF

$3.98

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

2.98

Grey zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	30.42×	55.67×	36.23×	11.22×	23.81×	54.67×	35.53×	32.62×
P/B	2.94×	1.69×	2.24×	2.21×	3.77×	1.58×	1.32×	2.41×
P/S	1.14×	0.66×	0.79×	0.77×	1.33×	0.63×	0.45×	0.69×
EV / EBITDA	13.84×	12.08×	13.83×	7.87×	13.09×	12.64×	9.66×	12.74×
Gross margin	41.2%	39.3%	38.5%	40.7%	39.4%	39.8%	42.4%	42.0%
Operating margin	7.3%	2.3%	5.0%	10.3%	9.1%	3.7%	5.0%	4.6%
Net margin	3.8%	1.1%	2.1%	6.9%	5.6%	1.1%	1.3%	2.1%
Current ratio	2.34×	2.38×	2.44×	2.26×	2.04×	2.26×	2.42×	2.42×
Debt / equity	0.74×	0.67×	0.85×	0.86×	0.81×	0.85×	1.05×	1.24×
Interest coverage	4.38×	0.99×	2.36×	9.34×	10.79×	2.6×	2.13×	1.9×
Dividend yield	3.3%	5.8%	3.8%	3.4%	1.2%	0.0%	0.0%	0.0%
Payout ratio	98.3%	330.9%	141.2%	37.8%	28.6%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.9%	2.9%	6.0%	19.6%	15.8%	2.8%	3.7%	7.2%
Return on invested capital	6.6%	1.9%	5.0%	11.0%	9.1%	2.2%	3.3%	6.5%
Return on assets	4.4%	1.4%	2.5%	8.1%	6.6%	1.2%	1.5%	2.6%
Free cash flow yield	9.0%	10.5%	3.9%	3.5%	10.7%	27.3%	15.6%	8.0%
Earnings yield	3.4%	1.7%	2.7%	8.9%	4.2%	1.8%	2.8%	3.0%
Enterprise value	$320.2M	$204.8M	$293.4M	$277M	$402.9M	$197.5M	$194.4M	$268.2M
Net debt / EBITDA	1.81×	2.47×	3.04×	1.57×	1.05×	2.62×	3.76×	3.74×
Cash conversion cycle (days)	63	64	80	68	50	72	85	81