ISSC
Innovative Solutions and Support Inc
Price:  
14 
USD
Volume:  
328,279
United States | Aerospace & Defense

ISSC Fair Value

9.6 %
Upside

What is the fair value of ISSC?

As of 2025-07-05, the Fair Value of Innovative Solutions and Support Inc (ISSC) is 15.35 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 14 USD, the upside of Innovative Solutions and Support Inc is 9.6%.

Is ISSC a good investment?

With the market price of 14 USD and our fair value calculation, Innovative Solutions and Support Inc (ISSC) is a good investment. Investing in ISSC stocks now will result in a potential gain of 9.6%.

14 USD
Stock Price
15.35 USD
Fair Price
FAIR VALUE CALCULATION

ISSC Fair Value

Peter Lynch's formula is:

ISSC Fair Value
= Earnings Growth Rate x TTM EPS
ISSC Fair Value
= 25 x 0.61
ISSC Fair Value
= 15.35

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
09-202009-202109-202209-202309-20245Y Avg
Net income3.275.065.526.0375
YoY growth76.8%54.7%9.1%9.2%16.1%33.2%

ISSC Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Raytheon Technologies Corp194,7153.463.11-56.7%
Lockheed Martin Corp108,36823.5117.44-74.6%
General Dynamics Corp79,11414.874.09-74.9%
Northrop Grumman Corp72,57025.8644.5927.8%
Textron Inc14,8464.6114.9339.8%
Butler National Corp1200.24.21184.6%
Optex Systems Holdings Inc830.77.36-38.8%
VirTra Inc750.13.13-52.7%
Opt-Sciences Corp15249.09151.7%
Air Industries Group12-0.4-2.19-167%

ISSC Fair Value - Key Data

Market Cap (mil)246
P/E22.8x
Forward P/E26.6x
EPS0.61
Avg earnings growth rate33.2%
TTM earnings11

ISSC Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.