Is Information Services Group, Inc. overvalued or undervalued?

As of 10 October 2025, the valuation grade for Information Services Group, Inc. moved from expensive to very expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its P/E ratio of 20, which is significantly lower than the peer average of 22.59, and an EV to EBITDA ratio of 12.30, which is also less favorable compared to peers like Lincoln Educational Services Corp. with an EV to EBITDA of 20.54. Additionally, the PEG ratio stands at a remarkably low 0.11, suggesting that the stock may not be justifying its current price given its growth prospects.
In comparison to its peers, TaskUs, Inc. is classified as very attractive with a P/E of 27.32 and an EV to EBITDA of 10.15, highlighting that Information Services Group, Inc. is not only lagging in valuation metrics but also facing stiff competition. Despite a strong year-to-date return of 57.49% compared to the S&P 500's 11.41%, the company's long-term performance over three years shows a stark contrast, with a return of only 8.23% against the S&P 500's 81.39%. This suggests that while the stock has performed well recently, its overall valuation may not be sustainable in the long run.