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Information Services Group (III) Fair Value & Analysis

Technology · US · Market cap $192M

IS Information Services Group logo Information Services Group III · US
Price$5.00
Fair Value$4.10
Upside-18.0%
Quality60/100
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Weak Growth
Thin margins · 4.3% net margin
Moderate debt · generates free cash flow
4.33% dividend yield
Mixed vs. peers (8/15)
Narrow moat 39/100
Evidence: High Range $2.99 – $5.13 Share as image

Fair value as of: Jul 16, 2026

From 23 valuation models · updated 22 days ago

Share price +23.2% over the past month.

A solid business, but screening 18% overvalued on our models.

What matters now

  • Solid but not exceptional quality (60/100) and above fair value, neither a clear bargain nor a standout compounder.
  • Our model range runs from $2.99 (bear) to $5.13 (bull), base $4.10. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 60/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

$8.01 $2.67 Fair Value $4.10 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range $2.67 – $8.01 · fair‑value band $2.99 – $5.13 · the $5.00 price screens above the $4.10 fair value. Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Information Services Group (III) currently trades at $5.00, while our model-based Fair Value estimate is $4.10, implying the stock looks roughly 18.0% overvalued today. We read business quality at 60/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Information Services Group generated revenue of $246M at a net margin of 4.3%. Revenue grew 2.7% year over year. It earns a return on equity of 11.2%. Net debt stands at $41.9M. Fundamentals as of Jul 16, 2026

Our scenario range runs from $2.99 (bear case) to $5.13 (bull case); at $5.00, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 20% below its 52-week high and 35% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -25% fair-value upside, at -18%, III screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $3.49 $4.57 $5.75 80
Residual Income $1.56 $1.66 $1.81 76
Rev-Margin DCF $2.93 $4.48 $6.14 74
All 23 models by family
DCF Models
FCF DCF $3.44 $4.63 $5.99 38
Owner Earnings $0.9700 $1.44 $1.98 31
5Y Revenue Exit $2.93 $4.40 $6.17 39
5Y EBITDA Exit $3.37 $5.18 $7.16 41
5Y P/E Exit $2.60 $3.82 $5.00 38
10Y Revenue Exit $3.06 $4.28 $5.72 36
10Y EBITDA Exit $3.36 $4.72 $6.33 37
10Y P/E Exit $2.95 $3.94 $4.99 35
Earnings-Based
Graham-Dodd $1.33 $3.02 $3.87 54
PEG = 1.0 $0.5000 $0.7100 $0.9300 46
EPV $1.24 $1.47 $1.65 59
Multiples
P/E Multiple $2.93 $3.91 $4.88 63
P/S Multiple $2.49 $3.32 $4.15 58
P/B Multiple $2.49 $3.32 $4.15 55
EV/EBIT $4.38 $6.06 $7.73 53
EV/EBITDA $3.91 $5.43 $6.95 54
EV/Revenue $2.75 $4.20 $5.65 43
Asset-Based
NCAV (Graham) $0.9900 $1.33 $1.98 50
Growth DCF
Growth DCF $3.49 $4.57 $5.75 80
Rev-Margin DCF $2.93 $4.48 $6.14 74
Economic Profit
Residual Income $1.56 $1.66 $1.81 76
ROIC Compounder $1.24 $1.47 $1.65 72
Growth Earnings
Growth-Adj P/E $2.20 $3.15 $4.09 68

Widest divergence: Growth DCF ($4.48) versus Asset-Based ($1.33). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $246M
Revenue growth (YoY) +2.7%
Net margin 4.3%
Return on equity 11.2%
Free cash flow $25.0M FY2025
P/E ratio 19.1
More key figures
Operating margin 8.2%
EPS (TTM) $0.2100
Dividend yield 4.3%
EPS growth (YoY) +66.7%
Net debt $41.9M FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 60/100

Of which business quality 65 · Market factors (momentum, volatility) 48

Profitability 57
Margins and returns on capital today
Quality Growth 53
Are margins and returns improving?
Cashflow 71
Earnings quality: real cash, not paper profit
Fin. Strength 50
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 45
Calm price path (market factor)
Momentum 47
Price trend over the last 3–12 months (market factor)
52W Momentum 54
Distance to the 52-week high (market factor)
Net Issuance 79
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Information Services Group, Inc., together with its subsidiaries, operates as an artificial intelligence (AI) centered technology research and advisory company in the Americas, Europe, and the Asia Pacific.

Full company description

Information Services Group, Inc., together with its subsidiaries, operates as an artificial intelligence (AI) centered technology research and advisory company in the Americas, Europe, and the Asia Pacific. It offers digital transformation services, including sourcing advisory and cloud and data analytics; managed governance and risk; network and software advisory; technology strategy and operations design; change management; and market intelligence. The company also provides ISG Digital, a client solution platform focused on developing technology, transformation, sourcing, and digital solutions; and ISG Enterprise, a client solution platform that helps clients manage change and optimize operations in such areas as information technology, finance, human resources, and training. In addition, it offers ISG Research, which provides market analyses, provider evaluations, and data-driven insights; ISG Network and Software Advisory portfolio; and ISG GovernX, ISG Inform, and ISG Tango software platforms, as well as ISG iFlex, a delivery model for deployment of resources. The company serves private sector clients operating in the manufacturing, banking and financial services, insurance, health sciences, energy and utilities, and consumer services industries; and public sector clients, including state and local governments, airport and transit authorities, and national and provincial government units. Information Services Group, Inc. was incorporated in 2006 and is based in Stamford, Connecticut.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Information Services Group reported revenue of $245M in FY2025 versus $278M in FY2021, a compound −3.1%/yr. Reported net income was $9.3M in FY2025, compounding −11.9%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
$245M
Latest YoY
−1.2%
Avg. growth/yr (3Y)
−5.1%
Avg. growth/yr (5Y)
−0.4%
Avg. growth/yr (18Y)
+15.3%
Revenue −3.1%/yr
FY21 $278M
FY22 $286M
FY23 $291M
FY24 $248M
FY25 $245M
Net income −11.9%/yr
FY21 $15.5M
FY22 $19.7M
FY23 $6.2M
FY24 $2.8M
FY25 $9.3M

III screens 18% overvalued. Compare with International Business Machines Corporation →

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Cite: Fair Value Calculator (2026). "Information Services Group Fair Value". https://www.fairvalue-calculator.com/stock/III

Peer Group

Information Technology Services · 482 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 60 · Top 25%
Fair Value upside −18% · Below median
Return on equity (TTM) 11% · Above median
Return on assets 6% · Above median
Net margin (TTM) 4% · Below median
Operating margin (TTM) 8% · Above median
Revenue growth 3% · Below median
Dividend yield (TTM) 4.3% · Top 25%
Debt / equity 0.63× · Higher than 75% of peers

Valuation Multiples vs Information Technology Services median · lower = cheaper

P/E (TTM) 19.1× · Pricier than median
P/B 2.03× · Pricier than median
P/S (TTM) 0.78× · Cheaper than median
P/FCF 7.7× · Pricier than median
EV/EBITDA 9.3× · Cheaper than median
PEG 0.65× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 9 · sector 22
FUTURE 14 · sector 30
PAST 45 · sector 37
HEALTH 69 · sector 97
DIVIDEND 87 · sector 37

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
International Business Machines Corporation IBM $235.92 $143.90 -39%
Accenture plc ACNN 2,460 MXN 250.95 MXN -90%
Infosys Limited INFY ₹1,156 ₹1,457 +26%
HCL Technologies Limited HCLTECH ₹1,204 ₹1,230 +2%
Wipro Limited WIPRO ₹178.43 ₹226.81 +27%
Tech Mahindra Limited TECHM ₹1,455 ₹1,086 -25%
Samsung SDS Co 018260 199,300 KRW 196,390 KRW -1%
Persistent Systems Limited PERSISTENT ₹5,059 ₹2,364 -53%
Hyundai Autoever Corporation 307950 393,000 KRW 133,088 KRW -66%
Coforge Limited COFORGE ₹1,541 ₹702.84 -54%

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Frequently asked questions

Is Information Services Group (III) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of $4.10 versus a price of $5.00, about −18% (overvalued).
What is the fair value of III?
Our model-based fair value for Information Services Group is $4.10 (as of Jul 16, 2026), built from audited fundamentals. The current price is $5.00.
What is the quality score of III?
Information Services Group has a Quality Score of 60/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Information Services Group (III)?
Information Services Group reported trailing-twelve-month revenue of about $246M (latest available figure, as of Jul 16, 2026).
What is the net profit margin of III?
The net profit margin of Information Services Group is about 4.3%, meaning it keeps roughly 4.3% of revenue as net income. Based on the latest reported figures.
Does Information Services Group pay a dividend?
Information Services Group currently shows a dividend yield of about 4.33% relative to its recent price (as of Jul 16, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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