Invesaro

Stocks III DCF valuation

DCF valuation

What is Information Services Group Inc. worth?

With the base-case assumptions below, a discounted cash flow model on Information Services Group Inc.'s reported free cash flow gives $5.94 per share. The share price was $6.13 on November 10, 2026, 3% above that value.

Inputs from the filings

Free cash flow, fiscal 2025
$25M
Average free cash flow, last 5 years
$19.6M
Cash
$28.5M
balance sheet of September 30, 2026
Debt
$59.2M
balance sheet of September 30, 2026
Diluted shares, fiscal 2025
50,334,000
Revenue growth per year, last 5 years
-0.4%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear-5.5%-2.0%2.0%10.0%$3.50-43%
Base-0.5%1.0%2.5%9.0%$5.94-3%
Bull4.5%4.0%3.0%8.0%$10.71+75%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$7.63$8.13$8.75$9.52$10.50
8.0%$6.38$6.71$7.09$7.55$8.12
9.0%$5.46$5.69$5.94$6.24$6.60
10.0%$4.76$4.92$5.10$5.31$5.54
11.0%$4.21$4.32$4.45$4.60$4.77

Where the presets come from

Base: years 1 to 5 grow at Information Services Group Inc.'s revenue growth rate over the last 5 fiscal years (-0.4% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Information Services Group Inc. company page