Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2026-06-27), Information Services Group's Beta is 0.7435.
Information Services Group (FRA:ZZG) Beta Explanation
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. We usually compare beta to 1. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market.
Beta is primarily used in the Capital Asset Pricing Model (CAPM) to calculate the Cost of Equity, which can be used in the calculation of WACC %. The formula of Cost of Equity is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Information Technology Services subindustry, Information Services Group's Beta, along with its competitors' market caps and Beta data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Information Services Group Beta vs Software Industry
For the Software industry and Technology sector, Information Services Group's Beta distribution charts can be found below:
* The bar in red indicates where Information Services Group's Beta falls into.
Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. A stock's beta can be calculated by dividing the product of the covariance of the individual stock's returns and the market's returns by the variance of the market's returns over a specified period. Basically, GuruFocus uses the returns calculated over three-year period.
Information Services Group (FRA:ZZG) has a Beta of 0.7435 as of Jun. 27, 2026. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Information Services Group and its competitors.
Is Information Services Group's Beta too high?
Information Services Group's current Beta is 0.7435. Overall, Information Services Group has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Information Services Group's Beta compare to FCCN and CNDT?
Information Services Group's Beta of 0.7435 can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beta for a Software company?
A good Beta depends on the Software industry context. However, Beta should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beta mean?
A high Beta can signal that a stock is expensive relative to its fundamentals. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Information Services Group and its competitors. Information Services Group's current Beta is 0.7435. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Information Services Group stock overvalued right now?
Based on GuruFocus' analysis, Information Services Group (FRA:ZZG) is currently considered Modestly Overvalued. The stock's GF Value™ is €3.18, compared to a current price of €3.52 — trading 10.7% above its estimated fair value. The current Beta is 0.7435. Information Services Group's overall GF Score™ is 68/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beta calculated?
Beta is calculated from a company's financial statements. For Information Services Group (FRA:ZZG), the current Beta is 0.7435 as of Jun. 27, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Information Services Group (FRA:ZZG) Overvalued in 2026?
Based on GuruFocus' analysis, Information Services Group stock appears to be overvalued.
The current stock price of €3.52 is trading 10.7% above its estimated GF Value™ of €3.18.
GuruFocus considers Information Services Group to be Modestly Overvalued.
Key valuation signals for FRA:ZZG:
Beta: 0.7435
GF Value™: €3.18 vs. price of €3.52 (10.7% above fair value)
No single metric tells the full story. See the FRA:ZZG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Information Services Group Inc is an AI-centered technology research and advisory firm providing digital transformation and technology advisory services that help organizations optimize performance, reduce costs, and accelerate innovation. The Company's expertise includes sourcing advisory, cloud and data analytics, managed governance and risk services, network and software advisory, technology strategy and operations design, change management, and market intelligence, serving both private- and public-sector clients globally. It operates in one segment, fact-based sourcing advisory services, and operates principally in the Americas, with generate maximum revenue in Europe and the Asia Pacific.
68GF Score
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