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This means that, based solely on DCF, the market is pricing in a far more optimistic future than current cash flow projections justify.

Result: OVERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Innodata.

Our Discounted Cash Flow (DCF) analysis suggests Innodata may be overvalued by 383.8%. Find undervalued stocks or create your own screener to find better value opportunities.

The price-to-earnings ratio, or PE ratio, is a widely used valuation tool for profitable companies like Innodata because it directly ties the stock price to the company’s actual earnings. This makes it a powerful metric for investors looking to connect valuation with real financial performance.

However, what counts as a “normal” or “fair” PE ratio can swing widely based on how fast a company is expected to grow and how much risk it carries. Investors are often willing to pay a higher multiple for businesses with rapid growth prospects or lower perceived risk, and less for companies facing challenges or slower expansion.

Right now, Innodata trades at a PE ratio of 59.26x. For context, this is well above the average among its peers at 46.38x, and far higher than the broader Professional Services industry average of 24.94x. On a purely surface level, that makes Innodata look expensive.

But not all businesses deserve the same PE just because they are industry peers. This is where Simply Wall St’s proprietary “Fair Ratio” comes in. This metric combines company-specific details such as growth rates, profit margins, risks, industry trends, and market cap to determine what a reasonable PE should be for Innodata right now.

Innodata’s Fair Ratio is calculated at 22.44x, which is well below both its current multiple and the peer group. Since this method tailors the benchmark to the company’s actual profile, it can be more insightful than simply comparing industry averages that may not fully take into account what makes Innodata unique or risky.

Since Innodata’s current PE ratio of 59.26x is significantly higher than its Fair Ratio of 22.44x, the stock appears overvalued based on this approach.

Result: OVERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Earlier we mentioned there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is your unique perspective on Innodata: it is the story you believe about the company’s future, brought to life by your own assumptions about its upcoming revenue, profit margins, and fair value.

Rather than relying just on standard ratios or consensus estimates, Narratives help you connect what is happening in the real world, such as new AI demand, changing competition, or regulatory shifts, to a financial forecast and a fair value, all in a structured, accessible way.

On Simply Wall St’s Community page, Narratives make it easy for millions of investors to map their view of the company to the numbers and instantly see if their assumed fair value is above or below the current market price. This guides smarter buy or sell decisions with facts tailored to their belief.

Because Narratives update dynamically when new headlines or company results come in, your view always keeps pace with reality. For example, the most bullish Innodata Narrative recently set a fair value as high as $75.00 per share, driven by expectations of booming AI demand and margin expansion. The most bearish view is just $55.00, reflecting risks like shrinking clients or margin pressure. Which story sounds most convincing to you?

Do you think there’s more to the story for Innodata? Create your own Narrative to let the Community know!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include INOD.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

• Fair Value: The estimated fair value has risen slightly, moving from TRY 143.52 to TRY 146.10.

• Discount Rate: The discount rate has edged up marginally, increasing from 32.05% to 32.08%.

• Revenue Growth: Projected revenue growth has fallen significantly, decreasing from 269.77% to 156.09%.

• Net Profit Margin: The net profit margin forecast has decreased from 3.74% to 2.47%.

• Future P/E: The expected future price-to-earnings ratio has increased sharply, rising from 2.07x to 9.63x.

A Narrative is a powerful, story-driven way to understand a company like Haci Ömer Sabanci Holding by linking its business story to a financial forecast and a fair value. Narratives on Simply Wall St combine real user insights about future revenue, earnings, and profit margins, so you can see exactly how a company’s story ties to its numbers. Used by millions of investors, Narratives are dynamic and accessible tools found on our Community page. They can help you decide when to act as valuations or news change.

Discover the complete story and follow the original Narrative for Haci Ömer Sabanci Holding to stay ahead of investment moves:

• Track how major energy and digital investments, such as the Oriana project completion and Bulutistan acquisition, could propel revenue growth and boost profit margins.

• Understand analyst assumptions including rapid revenue growth, rising profit margins, and fair value targets, all brought together in one clear forecast.

• Stay aware of the key risks such as operational challenges, cost pressures, and market volatility, which could shape future valuation.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include SAHOL.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com