Is Information Services Group, Inc. overvalued or undervalued?

As of 15 August 2025, the valuation grade for Information Services Group, Inc. moved from very expensive to expensive. The company appears to be overvalued based on its current financial metrics. The P/E ratio stands at 20, while the PEG ratio is notably low at 0.11, indicating potential overvaluation relative to growth expectations. Additionally, the EV to EBITDA ratio is 12.30, which is higher than some peers, suggesting that the company may not be as attractive as it seems.
In comparison to its peers, Lincoln Educational Services Corp. has a much higher P/E ratio of 59.63, indicating it is very expensive, while TaskUs, Inc. is considered very attractive with a P/E of 27.32. Despite the overvaluation, Information Services Group, Inc. has shown strong recent performance, with a year-to-date return of 65.87% compared to the S&P 500's 12.22%, reinforcing the notion that while the stock may be overvalued, it has been performing well in the market.