Insmed Incorporated

INSM

HealthcareBiotechnologyNASDAQ

$101.35

Market Cap: $21.88B

Insmed Incorporated (INSM) Valuation Summary

Updated Apr 9, 2026 22:17

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	—	N/A	—
Revenue DCF 10Y	$1.06 – $94.52	$1.06	-99.3%
▸ Trading Multiples
EV/Revenue	$4.12 – $15.23	$15.98	-90.0%

Valuation History

DCF Analysis

Insmed Incorporated (INSM) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$1.06

Market Price

$101.35

Upside / Downside

-99.0%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -194.0% to a target of 13.3% over 5 years, discounted at a WACC of 8.7%, Insmed Incorporated (INSM) has an intrinsic value of $1.06 per share (range: $1.06 – $94.52).

Key Assumptions

Current Operating Margin

-194.0%

Target Operating Margin

13.3%

WACC

8.7%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

4.7%

Target CapEx/Rev

6.3%

D&A/Revenue

4.2%

Tax Rate

21.0%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	1,692	179.0%	-152.6%	-2,582	-2,582	71	(83)	220	-2,813	-2,699
2027	2,756	62.9%	-111.1%	-3,061	-3,061	115	(139)	260	-3,345	-2,952
2028	3,872	40.5%	-69.6%	-2,695	-2,695	162	(201)	272	-3,006	-2,442
2029	5,191	34.1%	-28.1%	-1,461	-1,461	217	(278)	322	-1,843	-1,378
2030	6,474	24.7%	13.3%	863	682	271	(356)	313	284	195
2031	8,336	28.8%	13.3%	1,112	878	349	(472)	455	301	191
2032	10,306	23.6%	13.3%	1,375	1,086	432	(599)	481	438	255
2033	12,209	18.5%	13.3%	1,628	1,287	511	(729)	464	604	324
2034	13,834	13.3%	13.3%	1,845	1,458	579	(848)	397	793	391
2035	14,962	8.2%	13.3%	1,996	1,577	627	(940)	275	988	449

Enterprise Value Bridge

Sum of PV(FCFF)-7,667

Terminal Value (Gordon Growth at 3.0%)17,956

PV of Terminal Value8,152

Enterprise Value485

(–) Net Debt258

Equity Value227

(÷) Shares Outstanding214

Fair Value per Share$1.06

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
6.7%	$-28	$2	$33	$64	$95
7.7%	$-33	$-10	$13	$37	$60
8.7%	$-36	$-18	$1	$20	$38
9.7%	$-38	$-22	$-7	$8	$23
10.7%	$-39	$-26	$-13	$-0	$13

Current price: $101.35. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 24.4% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$16.16

Market Price

$101.35

Upside / Downside

-84.1%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Insmed Incorporated (INSM) has a fair value of $16.16 based on 8 comparable companies in the Biotechnology industry.

EV/Revenue Valuation — Biotechnology

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Insmed IncorporatedINSM	21,652	36.1x	12.8x
Cardinal Health, Inc.CAH	50,781	0.3x	0.2x
Alcon Inc.ALC	37,727	4.0x	3.8x
BeOne Medicines Ltd.ONC	33,492	5.8x	4.8x
ResMed Inc.RMD	33,277	6.4x	5.8x
GE HealthCare Technologies Inc.GEHC	33,229	1.9x	1.9x
Agilent Technologies, Inc.A	32,631	4.9x	4.6x
IQVIA Holdings Inc.IQV	28,676	2.6x	2.5x
Humana Inc.HUM	23,796	0.3x	0.2x
Industry Median		3.3x	3.2x
(*) Revenue		606	1,717
= Enterprise Value		2,005	5,414
(-) Net Debt		258	258
Equity Value		1,747	5,156
(/) Outstanding shares		214	214
Fair Price		$8	$24

Selected Fair Value (avg of trailing + forward)

$16.16

-84.1%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

—

N/A

—

Revenue DCF 10Y

$1.06 – $94.52

$1.06

-99.3%

▸ Trading Multiples

EV/Revenue

$4.12 – $15.23

$15.98

-90.0%

DCF Analysis

Insmed Incorporated (INSM) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$1.06

Market Price

$101.35

Upside / Downside

-99.0%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-194.0%

Target Operating Margin

13.3%

WACC

8.7%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

4.7%

Target CapEx/Rev

6.3%

D&A/Revenue

4.2%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	1,692	179.0%	-152.6%	-2,582	-2,582	71	(83)	220	-2,813	-2,699
2027	2,756	62.9%	-111.1%	-3,061	-3,061	115	(139)	260	-3,345	-2,952
2028	3,872	40.5%	-69.6%	-2,695	-2,695	162	(201)	272	-3,006	-2,442
2029	5,191	34.1%	-28.1%	-1,461	-1,461	217	(278)	322	-1,843	-1,378
2030	6,474	24.7%	13.3%	863	682	271	(356)	313	284	195
2031	8,336	28.8%	13.3%	1,112	878	349	(472)	455	301	191
2032	10,306	23.6%	13.3%	1,375	1,086	432	(599)	481	438	255
2033	12,209	18.5%	13.3%	1,628	1,287	511	(729)	464	604	324
2034	13,834	13.3%	13.3%	1,845	1,458	579	(848)	397	793	391
2035	14,962	8.2%	13.3%	1,996	1,577	627	(940)	275	988	449

Enterprise Value Bridge

Sum of PV(FCFF)-7,667

Terminal Value (Gordon Growth at 3.0%)17,956

PV of Terminal Value8,152

Enterprise Value485

(–) Net Debt258

Equity Value227

(÷) Shares Outstanding214

Fair Value per Share$1.06

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
6.7%	$-28	$2	$33	$64	$95
7.7%	$-33	$-10	$13	$37	$60
8.7%	$-36	$-18	$1	$20	$38
9.7%	$-38	$-22	$-7	$8	$23
10.7%	$-39	$-26	$-13	$-0	$13

Current price: $101.35. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 24.4% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$16.16

Market Price

$101.35

Upside / Downside

-84.1%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Insmed Incorporated (INSM) has a fair value of $16.16 based on 8 comparable companies in the Biotechnology industry.

EV/Revenue Valuation — Biotechnology

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Insmed IncorporatedINSM	21,652	36.1x	12.8x
Cardinal Health, Inc.CAH	50,781	0.3x	0.2x
Alcon Inc.ALC	37,727	4.0x	3.8x
BeOne Medicines Ltd.ONC	33,492	5.8x	4.8x
ResMed Inc.RMD	33,277	6.4x	5.8x
GE HealthCare Technologies Inc.GEHC	33,229	1.9x	1.9x
Agilent Technologies, Inc.A	32,631	4.9x	4.6x
IQVIA Holdings Inc.IQV	28,676	2.6x	2.5x
Humana Inc.HUM	23,796	0.3x	0.2x
Industry Median		3.3x	3.2x
(*) Revenue		606	1,717
= Enterprise Value		2,005	5,414
(-) Net Debt		258	258
Equity Value		1,747	5,156
(/) Outstanding shares		214	214
Fair Price		$8	$24

Selected Fair Value (avg of trailing + forward)

$16.16

-84.1%