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Innodata Inc (INOD) Fair Value & Analysis

Technology · US · Market cap $2.0B

II Innodata Inc logo Innodata Inc INOD · US
Price$62.33
Fair Value$18.41
Upside-70.5%
Quality58/100
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Healthy Growth
Solidly profitable · 13.9% net margin
Low debt · generates free cash flow
Mixed vs. peers (8/14)
Wide moat 76/100
Evidence: High Range $12.43 – $25.83 Share as image

Fair value as of: Jul 19, 2026

From 26 valuation models · updated 22 days ago

Fair value updated Jul 19, 2026, revised from $20.29 to $18.41 (−9.3%) since Jul 18, 2026. Share price −9.7% over the past month.

A solid business, but screening 70% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case ($25.83). The favourable scenario is already priced in.
  • Solid but not exceptional quality (58/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range ($12.43 to $25.83) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$121.50 $2.86 Fair Value $18.41 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range $2.86 – $121.50 · fair‑value band $12.43 – $25.83 · the $62.33 price screens above the $18.41 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.

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Analysis

Innodata Inc (INOD) currently trades at $62.33, while our model-based Fair Value estimate is $18.41, implying the stock looks roughly 70.5% overvalued today. The Quality Score stands at 58/100 (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, Innodata Inc generated revenue of $283M at a net margin of 13.9%. Revenue grew 54.4% year over year. It earns a return on equity of 38.6%. The balance sheet holds a net cash position of $77.8M. Fundamentals as of Jul 19, 2026

Our scenario range runs from $12.43 (bear case) to $25.83 (bull case); at $62.33, the current price sits above 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 50% below its 52-week high and 82% 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 -70%, INOD screens richer 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 $13.52 $19.78 $28.58 80
Residual Income $6.27 $9.73 $88.37 76
Rev-Margin DCF $12.49 $19.13 $27.53 74
All 26 models by family
DCF Models
FCF DCF $13.65 $20.66 $31.10 38
Owner Earnings $11.22 $16.71 $24.91 31
5Y Revenue Exit $12.49 $19.21 $28.13 39
5Y EBITDA Exit $14.55 $23.39 $34.26 41
5Y P/E Exit $15.38 $25.05 $35.91 38
10Y Revenue Exit $12.52 $18.65 $27.62 36
10Y EBITDA Exit $14.04 $21.41 $32.22 37
10Y P/E Exit $14.53 $22.51 $33.45 35
Earnings-Based
Graham-Dodd $6.70 $29.10 $39.79 54
Lynch FV $7.48 $10.69 $13.90 50
PEG = 1.0 $7.48 $10.69 $13.90 46
EPV $9.95 $10.99 $11.85 59
Dividend Discount
Gordon GGM $0.1800 $0.3300 $0.4600 70
DDM Multi-Stage $0.1800 $0.3000 $0.3500 61
Multiples
P/E Multiple $15.52 $20.69 $25.87 63
P/S Multiple $11.56 $15.41 $19.27 58
P/B Multiple $11.07 $14.75 $18.44 55
EV/EBIT $18.07 $23.30 $28.54 53
EV/EBITDA $16.43 $21.12 $25.81 54
EV/Revenue $12.07 $16.23 $20.40 43
Asset-Based
NCAV (Graham) $1.64 $2.20 $3.28 50
Growth DCF
Growth DCF $13.52 $19.78 $28.58 80
Rev-Margin DCF $12.49 $19.13 $27.53 74
Economic Profit
Residual Income $6.27 $9.73 $88.37 76
ROIC Compounder $10.27 $11.71 $13.13 72
Growth Earnings
Growth-Adj P/E $12.44 $17.77 $23.10 68

Widest divergence: DCF Models ($20.66) versus Dividend Discount ($0.3000). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $283M
Revenue growth (YoY) +54.4%
Net margin 13.9%
Return on equity 38.6%
Free cash flow $35.6M FY2025
P/E ratio 54.3
More key figures
Operating margin 18.8%
EPS (TTM) $1.12
EPS growth (YoY) +90.9%
Net cash $77.8M FY2025

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 58/100

Of which business quality 63 · Market factors (momentum, volatility) 49

Profitability 91
Margins and returns on capital today
Quality Growth 53
Are margins and returns improving?
Cashflow 66
Earnings quality: real cash, not paper profit
Fin. Strength 99
Balance sheet, leverage, solvency risk
Investment 29
Disciplined investing over empire-building
Low Volatility 0
Calm price path (market factor)
Momentum 80
Price trend over the last 3–12 months (market factor)
52W Momentum 54
Distance to the 52-week high (market factor)
Net Issuance 0
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

Innodata Inc. operates as a data engineering company in the United States, the United Kingdom, the Netherlands, Canada, Germany, Belgium, and internationally. The company operates through three segments: Digital Data Solutions (DDS), Synodex, and Agility.

Full company description

Innodata Inc. operates as a data engineering company in the United States, the United Kingdom, the Netherlands, Canada, Germany, Belgium, and internationally. The company operates through three segments: Digital Data Solutions (DDS), Synodex, and Agility. The DDS segment engages in the provision of artificial intelligence (AI) training and post-training data, model evaluation, alignment, safety, AI model deployment and integration, and AI-enabled platforms. The Synodex segment offers an industry platform that transforms medical records into structured digital data for insurance and healthcare workflows. The company also provides Agility PR Solutions platform that provides media intelligence and public relations workflow software enhanced with AI-driven monitoring, analytics, and content capabilities. It serves banking, insurance, financial services, technology, digital retailing, and information media sectors through its professional staff, senior management, and direct sales personnel. The company was formerly known as Innodata Isogen Inc. and changed its name to Innodata Inc. in November 2003. Innodata Inc. was incorporated in 1988 and is headquartered in Ridgefield Park, New Jersey.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Innodata Inc reported revenue of $252M in FY2025 versus $69.8M in FY2021, a compound +37.8%/yr. Reported net income was $32.2M in FY2025.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$252M
Latest YoY
+47.6%
Avg. growth/yr (3Y)
+47.1%
Avg. growth/yr (5Y)
+34.0%
Avg. growth/yr (32Y)
+10.7%
Revenue +37.8%/yr
FY21 $69.8M
FY22 $79.0M
FY23 $86.8M
FY24 $170M
FY25 $252M
Net income
FY21 −$1.7M
FY22 −$11.9M
FY23 −$908K
FY24 $28.7M
FY25 $32.2M

INOD screens 70% overvalued. Compare with International Business Machines Corporation →

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Cite: Fair Value Calculator (2026). "Innodata Inc Fair Value". https://www.fairvalue-calculator.com/stock/INOD

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Information Technology Services · 480 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 58 · Above median
Fair Value upside −71% · Bottom 25%
Return on equity (TTM) 39% · Top 25%
Return on assets 18% · Top 25%
Net margin (TTM) 14% · Top 25%
Operating margin (TTM) 19% · Top 25%
Revenue growth 54% · Top 25%
Debt / equity 0.05× · Lower than median

Valuation Multiples vs Information Technology Services median · lower = cheaper

P/E (TTM) 54.3× · Pricier than 75% of peers
P/B 18.55× · Pricier than 75% of peers
P/S (TTM) 7.01× · Pricier than 75% of peers
P/FCF 55.7× · Pricier than 75% of peers
EV/EBITDA 36.8× · Pricier than 75% of peers
PEG 0.87× · 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 0 · sector 20
FUTURE 100 · sector 29
PAST 100 · sector 36
HEALTH 98 · sector 97
DIVIDEND 0 · sector 37

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

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 19, 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 Innodata Inc (INOD) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of $18.41 versus a price of $62.33, about −70% (overvalued).
What is the fair value of INOD?
Our model-based fair value for Innodata Inc is $18.41 (as of Jul 19, 2026), built from audited fundamentals. The current price is $62.33.
What is the quality score of INOD?
Innodata Inc has a Quality Score of 58/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Innodata Inc (INOD)?
Innodata Inc reported trailing-twelve-month revenue of about $283M (latest available figure, as of Jul 19, 2026).
What is the net profit margin of INOD?
The net profit margin of Innodata Inc is about 13.9%, meaning it keeps roughly 13.9% of revenue as net income. Based on the latest reported figures.

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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