Market Pulse59Neutral

Insmed IncorporatedOpportunity Rank #321(INSM) Intrinsic Value & DCF Analysis (2026)

Sector: Healthcare

Current Price

$105.00

Last updated: May 08, 2026

Price vs Intrinsic Value

$105.00
Price
$3.44
Intrinsic Value
Overvalued by 97%MOS: $2.75

Fundamental Score

8/100
Bearish

Weighted across 6 signals

Narrative Score

51/100
Weak

No change vs previous

Trend Score

7/100
Weak

As of 2026-05-08

The intrinsic value of Insmed Incorporated (INSM) is estimated at $3.44 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $105.00, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a -62.38% long-term growth rate and a 9.00% discount rate (calculated: 8.84%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Insmed Incorporated (INSM) is estimated at $3.44 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $105.00, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a -62.38% long-term growth rate and a 9.00% discount rate (calculated: 8.84%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$3.44
▼ -96.72% downside
20% margin of safety: $2.75
Years: 10Growth Rate: -62.38%
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Capital Efficiency

Average Quarterly ROIC
-385.94%
Cost of Capital (estimated)10%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

8/100
BearishWeighted across 6 signals
DCF Discount
96.7% premium to price
0
FCF Yield
-3.7% trailing FCF yield
0
ROIC vs WACC
ROIC -385.9% vs WACC 10.0% (-38.6x)
0
Net Debt / FCF
1.4x net debt to FCF
48
Buybacks
Share count growing
30
FCF CAGR (5Y)
-72.4% 5Y FCF CAGR (adjusted)
0
Pressure from: DCF Discount, FCF Yield.

Narrative Details

51/100
Weak
Vs 6-Month Baseline:Low (8th pct)Weighted across 5 recent drivers
Trend: Deteriorating downConfidence: 100%Updated: 17h ago
Sources: 53 (36 News · 17 Analyst)
Drivers(last 30 days)
15 regulatory scrutiny+0.5
2 earnings beat-0.3
19 news sentiment-0.1
Analyst upgrades+0.0
16 analyst reiterations0.0

Trend Details

7/100
WeakAs of 2026-05-08311 daily bars used
Distance from 52-Week High-52.1%
Price vs 21 EMA-25.0%
Price vs 50 EMA-29.5%
Price vs 21 EMA0 · -25.0%
Price vs 50 EMA0 · -29.5%
21 EMA vs 50 EMA11 · -6.0%
3M RS vs SPY0 · -39.2%
6M RS vs SPY0 · -54.7%
Distance from 52W High0 · -52.1%

Investment Coach

Updating... 1d ago
AVOIDConfidence: 89%
Thesis
Insmed Incorporated is significantly overvalued with its current price approximately 96.6% above estimated fair value, supported by weak fundamentals and negative free cash flow yield. The company's returns are substantially below its cost of capital, indicating poor financial health and investment appeal.
Key Risk
The primary risk is that the company's financial performance and valuation may not improve, leading to further declines in share price and investor losses.
Signals To Watch
  • Price moves to at least a mid-teens discount to fair value
  • Sustained improvement in ROIC versus WACC spread
  • Meaningful positive shifts in the narrative score direction
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR (Adjusted): -62.38%5 Year CAGR (Adjusted): -70.97%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
-$840-$902-$662-$523-$391-$356-$213-$208-$243-$157-$143-$97-$59-$46-$31-$29-$14-$11-$12-$25-$37

How Intrinziq Estimates Fair Value

Intrinziq estimates Insmed Incorporated's intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Insmed IncorporatedHealthcare

Insmed Incorporated, a biopharmaceutical company, develops and commercializes therapies for patients with serious and rare diseases. The company offers ARIKAYCE for the treatment of Mycobacterium avium complex lung disease as part of a combination antibacterial drug regimen for adult patients. It is also developing Brensocatib, an oral reversible inhibitor of dipeptidyl peptidase 1 for the treatment of patients with bronchiectasis and other neutrophil-mediated diseases; and Treprostinil Palmitil Inhalation Powder, an inhaled formulation of a treprostinil prodrug treprostinil palmitil for the treatment of pulmonary arterial hypertension and other rare pulmonary disorders. Insmed Incorporated was founded in 1988 and is headquartered in Bridgewater, New Jersey.