Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Innodata Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 35.7% to 42.7% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 58, DPO 18, DIO 60). At a 8.9% WACC with mid-year discounting, the terminal value (143% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 6.8x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $4.64 per share, suggesting INOD is overvalued by 94.5% at the current price of $84.89.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | Terminal | |
|---|---|---|---|---|---|---|
| Profit Before Tax | 9 | 12 | 15 | 4 | 6 | 7 |
| (−) Net Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| (+) D&A | 7 | 10 | 14 | 20 | 20 | 21 |
| EBITDA | 17 | 22 | 30 | 24 | 27 | 27 |
| (−) Tax | 5 | 6 | 8 | 2 | 3 | — |
| (−) CapEx | 20 | 26 | 34 | 10 | 14 | — |
| (−) ΔWC | 42 | 21 | 30 | -92 | 16 | — |
| Free Cash Flow (FCF) | -50 | -31 | -42 | 104 | -7 | — |
| Peers' EBITDA Multiple | 6.8x | |||||
| Terminal Value | 186 | |||||
| WACC / Discount Rate | 8.92% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | -48 | -27 | -34 | 77 | -5 | 121 |
| Enterprise Value | 85 | |||||
| Projection Period | -36 | -42.7% | ||||
| Terminal Value | 121 | 142.7% | ||||
| (−) Current Net Debt | (78) | |||||
| Equity Value | 163 | |||||
| (÷) Outstanding Shares | 35M | |||||
| Fair Price | $5 | -94.5% | ||||
| WACC \ EV/EBITDA Exit Multiple | 2.8x | 4.8x | 6.8x | 8.8x | 10.8x |
|---|---|---|---|---|---|
| 6.9% | $3 | $4 | $5 | $6 | $7 |
| 7.9% | $3 | $4 | $5 | $6 | $7 |
| 8.9% | $3 | $4 | $5 | $6 | $7 |
| 9.9% | $3 | $3 | $4 | $5 | $6 |
| 10.9% | $2 | $3 | $4 | $5 | $6 |
Current price: $84.89. Green = undervalued, Red = overvalued.
Based on default parameters
Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Innodata Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 35.7% to 8.8% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 58, DPO 18, DIO 60). At a 8.9% WACC with mid-year discounting, the terminal value (307% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 6.8x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $3.28 per share, suggesting INOD is overvalued by 96.1% at the current price of $84.89.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | 2034 | 2035 | Terminal | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Profit Before Tax | 9 | 12 | 15 | 4 | 6 | 8 | 10 | 12 | 14 | 16 | 16 |
| (−) Net Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| (+) D&A | 7 | 10 | 14 | 20 | 20 | 21 | 20 | 20 | 18 | 23 | 23 |
| EBITDA | 17 | 22 | 30 | 24 | 27 | 29 | 31 | 32 | 33 | 39 | 39 |
| (−) Tax | 5 | 6 | 8 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | — |
| (−) CapEx | 20 | 26 | 34 | 10 | 14 | 18 | 23 | 27 | 31 | 34 | — |
| (−) ΔWC | 42 | 21 | 30 | -92 | 16 | 15 | 18 | 18 | 15 | 11 | — |
| Free Cash Flow (FCF) | -50 | -31 | -42 | 104 | -7 | -8 | -15 | -19 | -21 | -14 | — |
| Peers' EBITDA Multiple | 6.8x | ||||||||||
| Terminal Value | 268 | ||||||||||
| WACC / Discount Rate | 8.92% | ||||||||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5.5 | 6.5 | 7.5 | 8.5 | 9.5 | 5 |
| Present Value of FCF | -48 | -27 | -34 | 77 | -5 | -5 | -9 | -10 | -10 | -6 | 114 |
| Enterprise Value | 37 | ||||||||||
| Projection Period | -77 | -207.0% | |||||||||
| Terminal Value | 114 | 307.0% | |||||||||
| (−) Current Net Debt | (78) | ||||||||||
| Equity Value | 115 | ||||||||||
| (÷) Outstanding Shares | 35M | ||||||||||
| Fair Price | $3 | -96.1% | |||||||||
| WACC \ EV/EBITDA Exit Multiple | 2.8x | 4.8x | 6.8x | 8.8x | 10.8x |
|---|---|---|---|---|---|
| 6.9% | $2 | $3 | $4 | $5 | $6 |
| 7.9% | $1 | $2 | $4 | $5 | $6 |
| 8.9% | $1 | $2 | $3 | $4 | $5 |
| 9.9% | $1 | $2 | $3 | $4 | $5 |
| 10.9% | $1 | $2 | $3 | $4 | $4 |
Current price: $84.89. Green = undervalued, Red = overvalued.
Based on default parameters
Using the industry peer median P/E Multiples multiple (trailing + forward), Innodata Inc. (INOD) has a fair value of $9.37 based on 5 comparable companies in the Information Technology Services industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Innodata Inc.INOD | 2,973 | 92.3x | 114.6x |
| Vicor Corporation | 11,787 | 100.1x | — |
| Formula Systems (1985) Ltd. | 2,260 | 3.8x | — |
| Globant S.A. | 1,694 | 17.1x | 6.4x |
| DXC Technology Company | 1,601 | 94.3x | 21.9x |
| ASGN Incorporated | 895 | 8.1x | 4.1x |
| Industry Median | 17.1x | 6.4x | |
| (*) Profit after tax | 32 | 26 | |
| Equity Value | 551 | 105 | |
| (/) Outstanding shares | 35 | 35 | |
| Fair Price | $16 | $3 | |
Using the industry peer median EV/EBITDA multiple (trailing + forward), Innodata Inc. (INOD) has a fair value of $12.50 based on 6 comparable companies in the Information Technology Services industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing EV/EBITDA | Forward EV/EBITDA | |
|---|---|---|---|
| Innodata Inc.INOD | 2,973 | 59.9x | 44.2x |
| Vicor Corporation | 11,787 | 98.8x | — |
| Formula Systems (1985) Ltd. | 2,260 | 8.3x | — |
| Clarivate Plc | 1,777 | 7.2x | 6.9x |
| Globant S.A. | 1,694 | 6.4x | 6.4x |
| DXC Technology Company | 1,601 | 0.6x | 0.6x |
| ASGN Incorporated | 895 | 5.7x | 5.5x |
| Industry Median | 6.8x | 6.0x | |
| (*) EBITDA | 48 | 66 | |
| = Enterprise Value | 328 | 392 | |
| (-) Net Debt | -78 | -78 | |
| Equity Value | 406 | 470 | |
| (/) Outstanding shares | 35 | 35 | |
| Fair Price | $12 | $13 | |
Using the industry peer median EV/Revenue multiple (trailing + forward), Innodata Inc. (INOD) has a fair value of $8.52 based on 8 comparable companies in the Information Technology Services industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing EV/Revenue | Forward EV/Revenue | |
|---|---|---|---|
| Innodata Inc.INOD | 2,973 | 11.5x | 8.5x |
| Vicor Corporation | 11,787 | 28.0x | 32.2x |
| Formula Systems (1985) Ltd. | 2,260 | 0.6x | — |
| Clarivate Plc | 1,777 | 2.4x | 2.3x |
| Globant S.A. | 1,694 | 0.8x | 0.8x |
| DXC Technology Company | 1,601 | 0.1x | 0.1x |
| Concentrix Corporation | 1,481 | 0.6x | 0.6x |
| C3.ai, Inc. | 1,399 | 3.2x | 5.0x |
| ASGN Incorporated | 895 | 0.5x | 0.5x |
| Industry Median | 0.7x | 0.8x | |
| (*) Revenue | 252 | 342 | |
| = Enterprise Value | 173 | 268 | |
| (-) Net Debt | -78 | -78 | |
| Equity Value | 251 | 346 | |
| (/) Outstanding shares | 35 | 35 | |
| Fair Price | $7 | $10 | |
Using the PEG framework with historical EPS growth of 8.0%, the company has a fair value of $5.92 based on NTM EPS (FY2026) of $0.74. The current PEG ratio is 34.01.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG tends to undervalue slow growers — consider dividend yield and asset value instead.
| EPS Growth RateHistorical | 3.4% |
| Adjusted Growth (clamped 8–25%)Clamped | 8.0% |
| Fair P/E | 8.0x |
| NTM EPS (FY2026) | $0.74 |
| Fair Value | $5.92 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $0.92 | — | — |
| FY2026E | $0.74 | -19.5% | 4 |
1Y Forward EPS CAGR: -19.5%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $-1.7M | $-0.07 | — |
| FY2022 | $-11.9M | $-0.44 | — |
| FY2023 | $-908,000 | $-0.03 | — |
| FY2024 | $28.7M | $0.89 | — |
| FY2025 | $32.2M | $0.92 | +3.4% |
4Y Historical EPS CAGR: 3.4%
Using the Earnings Power Value framework with a WACC of 8.9% and normalized earnings of $2.8M, the company has a fair value of $3.13 per share. The EPV range is $3.00 – $3.32 based on WACC sensitivity (7.4% – 10.4%).
| Low | Selected | High | |
|---|---|---|---|
| Normalized Earnings | 3 | 3 | 3 |
| (/) WACC | 10.4% | 8.9% | 7.4% |
| Enterprise Value | 27 | 32 | 38 |
| (-) Net debt | -78 | -78 | -78 |
| Equity Value | 105 | 110 | 116 |
| (/) Outstanding shares | 35 | 35 | 35 |
| Fair Price | $3.00 | $3.13 | $3.32 |
Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.