Is Innodata, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Innodata, Inc. moved from very expensive to fair, indicating a shift in market perception. The company is currently fairly valued. Key valuation ratios include a P/E ratio of 50, an EV to EBITDA of 46.83, and a PEG ratio of 0.04, suggesting that despite a high P/E, the growth potential is significantly undervalued relative to earnings growth expectations.
In comparison to peers, Innodata's P/E ratio of 39.15 is more favorable than TeraWulf, Inc. and Cipher Mining, Inc., both of which are classified as risky with negative P/E ratios. Additionally, its EV to EBITDA ratio is considerably lower than that of Yext, Inc., which is expensive at 26.40. Notably, Innodata has outperformed the S&P 500 significantly over multiple periods, with a 1Y return of 333.39% compared to the S&P 500's 14.08%, reinforcing its favorable valuation outlook.