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DCF valuation

What is Innovative Solutions & Support Inc worth?

With the base-case assumptions below, a discounted cash flow model on Innovative Solutions & Support Inc's reported free cash flow gives $10.13 per share. The share price was $24.78 on August 17, 2026, 145% above that value.

Inputs from the filings

Free cash flow, fiscal 2025
$6.8M
Average free cash flow, last 5 years
$4.8M
Cash
$10.7M
balance sheet of June 30, 2026
Debt
$54.5M
balance sheet of June 30, 2026
Diluted shares, fiscal 2025
17,829,033
Revenue growth per year, last 5 years
31.3%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear10.0%6.0%2.0%10.0%$5.19-79%
Base15.0%9.0%2.5%9.0%$10.13-59%
Bull20.0%11.5%3.0%8.0%$19.32-22%

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%$13.87$15.03$16.46$18.24$20.53
8.0%$11.06$11.81$12.71$13.78$15.09
9.0%$9.01$9.53$10.13$10.82$11.65
10.0%$7.47$7.83$8.25$8.73$9.27
11.0%$6.25$6.52$6.82$7.16$7.55

Where the presets come from

Base: years 1 to 5 grow at Innovative Solutions & Support Inc's revenue growth rate over the last 5 fiscal years (31.3% 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

Innovative Solutions & Support Inc company page