Is Information Services Group, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Information Services Group, Inc. has moved from attractive to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its current P/E ratio of 20, which is lower than the peer average of approximately 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 justified at its current price level.
In comparison to its peers, Information Services Group, Inc. is positioned less favorably, especially when looking at the valuation metrics of TaskUs, Inc. with a P/E of 27.32 and a PEG of 7.95, indicating a more attractive valuation. Despite the recent strong performance, with a year-to-date return of 62.28% compared to the S&P 500's 13.30%, the longer-term returns reveal a concerning trend, as the company has underperformed the S&P 500 over the 3-year and 10-year periods. This suggests that while the stock has had a strong run recently, its valuation may not be sustainable in the long term.