As of December 15, 2025, Information Analysis Inc's estimated intrinsic value ranges from $0.09 to $0.84 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $0.72 | -83.2% |
| Discounted Cash Flow (5Y) | $0.54 | -87.4% |
| Dividend Discount Model (Multi-Stage) | $0.45 | -89.4% |
| Dividend Discount Model (Stable) | $0.84 | -80.4% |
| Earnings Power Value | $0.09 | -97.9% |
Is Information Analysis Inc (IAIC) undervalued or overvalued?
With the current market price at $4.28, the stock appears to be significantly overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Information Analysis Inc's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.2% | 5.2% |
| Adjusted beta | 0.67 | 0.85 |
| Cost of equity | 6.0% | 8.6% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 27.0% | 27.0% |
| Debt/Equity ratio | 0.01 | 0.01 |
| After-tax WACC | 6.0% | 8.6% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $1 | $5M | 78.8% |
| 10-Year Growth | $1 | $8M | 67.1% |
| 5-Year EBITDA | $1 | $10M | 88.8% |
| 10-Year EBITDA | $1 | $11M | 77.8% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $(0)M |
| Discount Rate (WACC) | 8.6% - 6.0% |
| Enterprise Value | $(1)M - $(1)M |
| Net Debt | $(2)M |
| Equity Value | $1M - $1M |
| Outstanding Shares | 14M |
| Fair Value | $0 - $0 |
| Selected Fair Value | $0.09 |
| Metric | Value |
|---|---|
| Market Capitalization | $58M |
| Enterprise Value | $56M |
| Trailing P/E | 100.03 |
| Forward P/E | 171.39 |
| Trailing EV/EBITDA | 18.75 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.01 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $0.22 |
| Discounted Cash Flow (5Y) | 25% | $0.13 |
| Dividend Discount Model (Multi-Stage) | 20% | $0.09 |
| Dividend Discount Model (Stable) | 15% | $0.13 |
| Earnings Power Value | 10% | $0.01 |
| Weighted Average | 100% | $0.58 |
Based on our comprehensive valuation analysis, Information Analysis Inc's intrinsic value is $0.58, which is approximately 86.5% below the current market price of $4.28.
Key investment considerations:
Given these factors, we believe Information Analysis Inc is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.