Information Services Valuation

Q: What is the Fair Price of ISC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ISC (CA$27.29) is trading below our estimate of [[fair value]] (CA$89.2)

Is ISC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ISC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ISC (CA$27.29) is trading below our estimate of fair value (CA$89.2)

Significantly Below Fair Value: ISC is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ISC?

Key metric: As ISC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ISC. This is calculated by dividing ISC's market cap by their current earnings.
What is ISC's PE Ratio?
PE Ratio	24.4x
Earnings	CA$20.66m
Market Cap	CA$503.16m

ISC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.8x
Enterprise Value/EBITDA	9.5x
PEG Ratio	1x

Price to Earnings Ratio vs Peers

How does ISC's PE Ratio compare to its peers?

The above table shows the PE ratio for ISC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	46.9x
FSV FirstService	80.1x	23.2%	CA$12.2b
CIGI Colliers International Group	49.9x	14.9%	CA$10.8b
MRD Melcor Developments	34.2x	n/a	CA$398.1m
WFC Wall Financial	23.3x	n/a	CA$584.3m
ISC Information Services	24.3x	25.6%	CA$503.2m

Price-To-Earnings vs Peers: ISC is good value based on its Price-To-Earnings Ratio (24.3x) compared to the peer average (46.9x).

Price to Earnings Ratio vs Industry

How does ISC's PE Ratio compare vs other companies in the CA Real Estate Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap
IMPT Impact Development Group	1.7x	n/a	US$18.32m
YEG Yorkton Equity Group	3.8x	-30.3%	US$15.22m
EMER Emergia	0.3x	n/a	US$7.49m

No more companies available in this PE range

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: ISC is expensive based on its Price-To-Earnings Ratio (24.3x) compared to the North American Real Estate industry average (24.2x).

Price to Earnings Ratio vs Fair Ratio

What is ISC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ISC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	24.4x
Fair PE Ratio	29.9x

Price-To-Earnings vs Fair Ratio: ISC is good value based on its Price-To-Earnings Ratio (24.3x) compared to the estimated Fair Price-To-Earnings Ratio (29.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ISC forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	CA$27.30	CA$34.40 +26.0%	6.7%	CA$36.50	CA$30.00	n/a	5
Nov ’25	CA$29.28	CA$34.20 +16.8%	6.7%	CA$36.50	CA$30.00	n/a	5
Oct ’25	CA$28.50	CA$34.20 +20.0%	6.7%	CA$36.50	CA$30.00	n/a	5
Sep ’25	CA$27.21	CA$33.10 +21.6%	6.8%	CA$36.00	CA$30.00	n/a	5
Aug ’25	CA$25.56	CA$31.40 +22.8%	7.7%	CA$34.00	CA$27.00	n/a	5
Jul ’25	CA$25.82	CA$31.40 +21.6%	7.7%	CA$34.00	CA$27.00	n/a	5
Jun ’25	CA$26.00	CA$31.40 +20.8%	7.7%	CA$34.00	CA$27.00	n/a	5
May ’25	CA$26.01	CA$31.15 +19.8%	7.4%	CA$34.00	CA$27.00	n/a	5
Apr ’25	CA$27.26	CA$31.15 +14.3%	7.4%	CA$34.00	CA$27.00	n/a	5
Mar ’25	CA$22.83	CA$28.95 +26.8%	10.3%	CA$31.75	CA$24.00	n/a	5
Feb ’25	CA$24.15	CA$28.75 +19.0%	10.0%	CA$31.75	CA$24.00	n/a	5
Jan ’25	CA$22.18	CA$27.95 +26.0%	13.8%	CA$31.75	CA$21.00	n/a	5
Dec ’24	CA$20.33	CA$27.95 +37.5%	13.8%	CA$31.75	CA$21.00	CA$27.25	5
Nov ’24	CA$21.46	CA$29.75 +38.6%	8.2%	CA$31.75	CA$25.00	CA$29.28	5
Oct ’24	CA$22.10	CA$29.75 +34.6%	8.2%	CA$31.75	CA$25.00	CA$28.50	5
Sep ’24	CA$24.65	CA$29.75 +20.7%	8.2%	CA$31.75	CA$25.00	CA$27.21	5
Aug ’24	CA$26.24	CA$29.75 +13.4%	8.2%	CA$31.75	CA$25.00	CA$25.56	5
Jul ’24	CA$21.19	CA$27.35 +29.1%	7.2%	CA$30.75	CA$25.00	CA$25.82	5
Jun ’24	CA$21.00	CA$27.35 +30.2%	7.2%	CA$30.75	CA$25.00	CA$26.00	5
May ’24	CA$22.34	CA$28.60 +28.0%	10.0%	CA$33.00	CA$26.00	CA$26.01	5
Apr ’24	CA$22.00	CA$28.60 +30.0%	10.0%	CA$33.00	CA$26.00	CA$27.26	5
Mar ’24	CA$22.50	CA$28.45 +26.4%	10.7%	CA$33.00	CA$26.00	CA$22.83	5
Feb ’24	CA$22.31	CA$28.45 +27.5%	10.7%	CA$33.00	CA$26.00	CA$24.15	5
Jan ’24	CA$24.17	CA$28.45 +17.7%	10.7%	CA$33.00	CA$26.00	CA$22.18	5
Dec ’23	CA$22.80	CA$28.45 +24.8%	10.7%	CA$33.00	CA$26.00	CA$20.33	5

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.