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 $5.85 per share. The share price was $5.26 on September 25, 2026, 10% below that value.

Inputs from the filings

Free cash flow, fiscal 2025
$25M
Average free cash flow, last 5 years
$19.6M
Cash
$23.7M
balance sheet of June 30, 2026
Debt
$59.2M
balance sheet of June 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%$3.40-35%
Base-0.5%1.0%2.5%9.0%$5.85+11%
Bull4.5%4.0%3.0%8.0%$10.61+102%

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%$7.53$8.04$8.65$9.42$10.41
8.0%$6.28$6.61$7.00$7.46$8.02
9.0%$5.37$5.59$5.85$6.15$6.50
10.0%$4.67$4.82$5.00$5.21$5.45
11.0%$4.11$4.23$4.36$4.50$4.67

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