Over the past year, I’ve reviewed more than 3,000 stocks, and I haven’t come across another U.S. based company with a history of consistent earnings trading as cheaply as Forrester Research (FORR). Forrester Research is a global research, advisory and consulting firm based in Cambridge, MA.
Back in April, I went through roughly 2,500 OTC-listed stocks one by one.
Most were low quality or uninvestable, leaving perhaps 50 that were worth a closer look. Of those, only 7–10 struck me as genuinely interesting and potentially investable. I wrote about a few of them like Mestek (MCCK) which at the time of my writeup was trading at 3.5x EV/EBIT and just below net current asset value.
Here are some of the other write-ups from some hidden OTC gems that I found:
QEP Co: An Undervalued Flooring Tools Company with Rapidly Improving Profit Margins
A Nano-Cap Auto Insurer Trading for Less Than Its Real Estate
Forrester Research trades on the NASDAQ and is a research and advisory firm based in the U.S.
Forrester is currently priced at ~2.5x enterprise value/EBIT.
Over the last 10 years…
Forrester’s average free cash flow per share = $1.85 per share
Average operating income of $25.9 million, or roughly $1.38 per share
The current non-lease adjusted enterprise value (EV) per share of this company is only $2.10, as of December 24th, 2025.
That means its current lease-adjusted EV to the average 10-year free cash flow is 2.25x and EV/EBIT is 3x.
To add the icing to the cake, this isn’t some high risk, speculative, debt loaded company.
Forrester has $5.11 per share in net cash, and the current stock price is $7.25, as of December 26th, 2025.
Yes, nearly three quarters of Forrester’s market cap is in net cash and EV to free cash flow is less than 3x.
The founder, CEO, and chairman George Colony also owns about 40% of the stock.
At its current valuation, the market has completely given up on Forrester, and it now trades at a dirt-cheap price, close to an all-time low price since being a public company.
Again, Forrester is absurdly cheap…
Forrester has $6.95 per share in cash and investments ($5.11 in net cash) and the stock closed at $7.25 on December 26th, 2025.
Management has projected adjusted EPS will be $1.15 - $1.25 in 2025. Forrester has guided for roughly $400 million in revenue and about 8% in adjusted operating margins. That would imply about $32 million in operating income. Lease-adjusted EV is only about $79 million, so that implies an EV to EBIT ratio of less than 2.5x, or a 40% earnings yield.
Forrester trades at probably less than half what it could be acquired for in the private markets.
In the paid section below, I walk through the full enterprise value calculation (lease vs. non-lease adjusted values), calculate the true adjusted earnings for Forrester, and show why Forrester’s core business is trading at roughly 2–3× earnings even after adjusting for operating leases.
