Innovative Solutions and Support, Inc.

NasdaqGS:ISSC Stock Report

Market Cap: US$134.7m

Innovative Solutions and Support Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 ISSC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ISSC ($7.7) is trading below our estimate of fair value ($7.72)

Significantly Below Fair Value: ISSC is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ISSC. This is calculated by dividing ISSC's market cap by their current earnings.
What is ISSC's PE Ratio?
PE Ratio20.9x
EarningsUS$6.45m
Market CapUS$134.75m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ISSC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.6x
TATT TAT Technologies
30.2xn/aUS$241.4m
VTSI VirTra
15x-2.0%US$86.7m
BUKS Butler National
7.1xn/aUS$99.7m
OPXS Optex Systems Holdings
14xn/aUS$58.7m
ISSC Innovative Solutions and Support
20.9xn/aUS$134.7m

Price-To-Earnings vs Peers: ISSC is expensive based on its Price-To-Earnings Ratio (20.9x) compared to the peer average (16.6x).

Price to Earnings Ratio vs Industry

How does ISSC's PE Ratio compare vs other companies in the US Aerospace & Defense Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CVU CPI Aerostructures
2.8xn/aUS$48.62m
ETCC Environmental Tectonics
4.9xn/aUS$31.14m
AWIN AERWINS Technologies
0.002xn/aUS$6.93k
GIGA.Q Gresham Worldwide
n/an/aUS$7.00
No more companies available in this PE range
ISSC 20.9xIndustry Avg. 35.1xNo. of Companies6PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ISSC is good value based on its Price-To-Earnings Ratio (20.9x) compared to the US Aerospace & Defense industry average (35.1x).

Price to Earnings Ratio vs Fair Ratio

What is ISSC'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.

ISSC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.9x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ISSC's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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