Innovative Solutions & Support Inc (IA)

Services-Computer Programming Services

Latest Price

$20.49

TTM P/E

19.33

Normalized P/E

37.29

TTM Div Yield

Fwd Div Yield

Book Value

4.31

P/B Ratio

4.75

Valuation metrics

EPS: $0.88

Book value / share: $3.66

Formula: √(22.5 × EPS × BVPS)

Graham Number

$8.52

58% downside

Norm. op. income: $7M (median of 7yr)

Tax rate: 21%

Discount rate: 10%

Growth assumption: zero (EPV is a no-growth value)

Earnings Power Value

$2.00

90% downside

Base FCF: $5M (median of recent 5yr)

Growth: 25%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$20.46

0% downside

EPS: $0.88

Target P/E: 37×

Formula: EPS × P/E

P/E Fair Value

$32.56

+59% upside