Information Services Group, Inc.

NasdaqGM:III Stock Report

Market Cap: US$173.2m

Information Services Group Valuation

Is III 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: III ($3.53) is trading below our estimate of fair value ($7.06)

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


Key Valuation Metric

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

Key metric: As III is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for III. This is calculated by dividing III's market cap by their current revenue.
What is III's PS Ratio?
PS Ratio0.7x
SalesUS$255.99m
Market CapUS$173.23m

Price to Sales Ratio vs Peers

How does III's PS Ratio compare to its peers?

The above table shows the PS ratio for III vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.3x
PFSW PFSweb
0.8xn/aUS$170.5m
2.9xn/aUS$167.7m
GLE Global Engine Group Holding
11.4xn/aUS$72.1m
RSSS Research Solutions
2.3x8.1%US$105.7m
III Information Services Group
0.7x3.7%US$173.2m

Price-To-Sales vs Peers: III is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (5.5x).


Price to Sales Ratio vs Industry

How does III's PS Ratio compare vs other companies in the US IT Industry?

27 CompaniesPrice / SalesEstimated GrowthMarket Cap
KD Kyndryl Holdings
0.5x1.6%US$7.68b
DXC DXC Technology
0.3x-1.9%US$4.04b
RXT Rackspace Technology
0.2x0.7%US$587.13m
UIS Unisys
0.3x3.4%US$568.08m
III 0.7xIndustry Avg. 2.3xNo. of Companies27PS02.44.87.29.612+
27 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: III is good value based on its Price-To-Sales Ratio (0.7x) compared to the US IT industry average (2.1x).


Price to Sales Ratio vs Fair Ratio

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

III PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.7x
Fair PS Ratio0.8x

Price-To-Sales vs Fair Ratio: III is good value based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (0.8x).


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 III forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$3.53
US$5.58
+58.2%
31.9%US$8.00US$3.75n/a3
Nov ’25US$3.08
US$5.83
+89.4%
39.8%US$9.00US$3.50n/a3
Oct ’25US$3.27
US$6.83
+109.0%
35.0%US$9.00US$3.50n/a3
Sep ’25US$3.50
US$6.83
+95.2%
35.0%US$9.00US$3.50n/a3
Aug ’25US$3.31
US$6.83
+106.4%
35.0%US$9.00US$3.50n/a3
Jul ’25US$3.06
US$6.83
+123.3%
35.0%US$9.00US$3.50n/a3
Jun ’25US$3.19
US$6.83
+114.2%
35.0%US$9.00US$3.50n/a3
May ’25US$3.34
US$8.67
+159.5%
30.3%US$11.00US$5.00n/a3
Apr ’25US$3.99
US$8.67
+117.2%
30.3%US$11.00US$5.00n/a3
Mar ’25US$4.32
US$9.00
+108.3%
24.0%US$11.00US$6.00n/a3
Feb ’25US$4.58
US$9.00
+96.5%
24.0%US$11.00US$6.00n/a3
Jan ’25US$4.71
US$9.00
+91.1%
24.0%US$11.00US$6.00n/a3
Dec ’24US$4.36
US$9.00
+106.4%
24.0%US$11.00US$6.00n/a3
Nov ’24US$4.07
US$9.33
+129.3%
18.2%US$11.00US$7.00US$3.083
Oct ’24US$4.38
US$9.33
+113.1%
18.2%US$11.00US$7.00US$3.273
Sep ’24US$5.09
US$9.33
+83.4%
18.2%US$11.00US$7.00US$3.503
Aug ’24US$5.16
US$9.33
+80.9%
18.2%US$11.00US$7.00US$3.313
Jul ’24US$5.36
US$9.33
+74.1%
18.2%US$11.00US$7.00US$3.063
Jun ’24US$5.06
US$9.33
+84.5%
18.2%US$11.00US$7.00US$3.193
May ’24US$5.13
US$9.33
+81.9%
18.2%US$11.00US$7.00US$3.343
Apr ’24US$5.09
US$9.33
+83.4%
18.2%US$11.00US$7.00US$3.993
Mar ’24US$5.28
US$10.00
+89.4%
8.2%US$11.00US$9.00US$4.323
Feb ’24US$5.33
US$10.00
+87.6%
8.2%US$11.00US$9.00US$4.583
Jan ’24US$4.60
US$10.33
+124.6%
9.1%US$11.00US$9.00US$4.713
Dec ’23US$5.39
US$10.33
+91.7%
9.1%US$11.00US$9.00US$4.363
Nov ’23US$5.48
US$10.33
+88.6%
9.1%US$11.00US$9.00US$4.073

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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