We’ve recently updated our valuation analysis.

Insmed Valuation

Is INSM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for INSM?

Other financial metrics that can be useful for relative valuation.

INSM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue13.7x
Enterprise Value/EBITDA-7.8x
PEG Ration/a

Price to Sales Ratio vs Peers

How does INSM's PS Ratio compare to its peers?

INSM PS Ratio vs Peers
The above table shows the PS ratio for INSM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average14x
FOLD Amicus Therapeutics
9.5x25.0%US$3.0b
ACAD ACADIA Pharmaceuticals
5.9x20.5%US$3.0b
PTCT PTC Therapeutics
5.9x11.9%US$3.7b
DNLI Denali Therapeutics
34.6x34.6%US$3.9b
INSM Insmed
12.5x37.9%US$2.8b

Price-To-Sales vs Peers: INSM is good value based on its Price-To-Sales Ratio (12.5x) compared to the peer average (14x).


Price to Earnings Ratio vs Industry

How does INSM's PE Ratio compare vs other companies in the US Biotechs Industry?

Price-To-Sales vs Industry: INSM is good value based on its Price-To-Sales Ratio (12.5x) compared to the US Biotechs industry average (14x)


Price to Sales Ratio vs Fair Ratio

What is INSM's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

INSM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio12.5x
Fair PS Ratio13.4x

Price-To-Sales vs Fair Ratio: INSM is good value based on its Price-To-Sales Ratio (12.5x) compared to the estimated Fair Price-To-Sales Ratio (13.4x).


Share Price vs Fair Value

What is the Fair Price of INSM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: INSM ($22.97) is trading below our estimate of fair value ($45.34)

Significantly Below Fair Value: INSM is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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