Market Pulse45Neutral

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

Sector: Healthcare

Current Price

$98.61

Last updated: Jun 23, 2026

Price vs Intrinsic Value

$98.61
Price
$0.28
Intrinsic Value
Overvalued by 100%MOS: $0.22

Fundamental Score

12/100
Bearish

Weighted across 6 signals

Narrative Score

53/100
Weak

No change vs previous

Trend Score

12/100
Weak

As of 2026-06-22

The intrinsic value of Insmed Incorporated (INSM) is estimated at $0.28 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $98.61, 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: 8.39%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Insmed Incorporated (INSM) is estimated at $0.28 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $98.61, 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: 8.39%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$0.28
▼ -99.72% downside
20% margin of safety: $0.22
Years: 10Growth Rate: -62.38%
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Capital Efficiency

Average Quarterly ROIC
-276.8%
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

12/100
BearishWeighted across 6 signals
DCF Discount
99.7% premium to price
0
FCF Yield
-3.9% trailing FCF yield
0
ROIC vs WACC
ROIC -276.8% vs WACC 10.0% (-27.7x)
0
Net Debt / FCF
0.6x net debt to FCF
88
Buybacks
Share count growing
30
FCF CAGR (5Y)
-72.4% 5Y FCF CAGR (adjusted)
0
Strengths: Net Debt / FCF. Concerns: DCF Discount, FCF Yield.

Narrative Details

53/100
Weak
Vs 6-Month Baseline:Average (44th pct)Weighted across 5 recent drivers
Trend: StableConfidence: 84%Updated: 1h ago
Sources: 31 (19 News · 12 Analyst)
Drivers(last 30 days)
3 regulatory scrutiny+0.2
14 news sentiment+0.1
2 earnings beat-0.0
Analyst upgrades+0.0
11 analyst reiterations0.0

Trend Details

12/100
WeakAs of 2026-06-22308 daily bars used
Distance from 52-Week High-53.4%
3M Relative Strength vs SPY-42.3%
6M Relative Strength vs SPY-61.2%
Price vs 21 EMA30 · -3.4%
Price vs 50 EMA4 · -14.3%
21 EMA vs 50 EMA2 · -11.2%
3M RS vs SPY0 · -42.3%
6M RS vs SPY0 · -61.2%
Distance from 52W High0 · -53.4%

Investment Coach

Updating... 12d ago
AVOIDConfidence: 89%
Thesis
Insmed Incorporated is significantly overvalued with its current price nearly 100% 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 performance and value destruction.
Key Risk
The primary risk is that the company's fundamentals and cash flow generation fail to improve, perpetuating its severe overvaluation and financial underperformance.
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 operates as a biopharmaceutical enterprise focused on creating and introducing medical solutions for individuals facing severe and uncommon health conditions. The company's marketed treatment, ARIKAYCE, is administered to adult patients suffering from Mycobacterium avium complex (MAC) lung disease, serving as a component of a broader antibacterial drug regimen. In its development pipeline, Insmed is advancing Brensocatib, an oral and reversible inhibitor targeting dipeptidyl peptidase 1, which is being investigated for its potential in treating bronchiectasis and other disorders mediated by neutrophils. Additionally, the firm is developing Treprostinil Palmitil Inhalation Powder, an inhaled version of the treprostinil palmitil prodrug, designed to address pulmonary arterial hypertension and various other rare lung ailments. Founded in 1988, Insmed Incorporated maintains its primary corporate offices in Bridgewater, New Jersey.