Insmed (INSM) Stock Undervalued by 54.3% Based on DCF Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 11 2026
0mins
Should l Buy INSM?
Source: Yahoo Finance
- Stock Performance: Insmed's recent closing price of $175.97 reflects a remarkable 169.7% return over the past year, despite a 9.9% decline in the last month, highlighting the tension between short-term volatility and long-term growth potential.
- Cash Flow Forecast: The Discounted Cash Flow (DCF) model projects Insmed's free cash flow to reach $2.855 billion by 2030, while the current free cash flow stands at a loss of $906.7 million, indicating a significant improvement in future profitability.
- Intrinsic Value Assessment: The DCF analysis estimates Insmed's intrinsic value at approximately $385.32 per share, suggesting a 54.3% undervaluation compared to the current market price, presenting a potential buying opportunity for investors.
- Price-to-Book Analysis: Insmed's price-to-book ratio is 39.69x, significantly higher than the biotech industry average of 2.70x; however, the absence of a clear “fair ratio” model complicates the assessment of its current valuation.
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Analyst Views on INSM
Wall Street analysts forecast INSM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for INSM is 218.44 USD with a low forecast of 157.00 USD and a high forecast of 263.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
16 Buy
1 Hold
0 Sell
Strong Buy
Current: 151.030
Low
157.00
Averages
218.44
High
263.00
Current: 151.030
Low
157.00
Averages
218.44
High
263.00
About INSM
Insmed Incorporated is a global biopharmaceutical company. It is advancing a diverse range of approved and mid- to late-stage investigational medicines and drug discovery. Its advanced programs are in pulmonary and inflammatory conditions, including a therapy approved in the United States, Europe, and Japan to treat a chronic, debilitating lung disease. Its pre-clinical research programs encompass a range of technologies and modalities, including gene therapy, AI-driven protein engineering, protein manufacturing, RNA end-joining, and synthetic rescue. Its first commercial product, ARIKAYCE (amikacin liposome inhalation suspension), is used for the treatment of Mycobacterium avium complex lung disease as part of a combination antibacterial drug regimen for adult patients with limited or no alternative treatment options. Its pipeline includes clinical-stage programs, brensocatib, TPIP, and INS1201 and pre-clinical research programs. Its INS1148 is an investigational monoclonal antibody.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strategic Optimization: Adsett's proven track record at Insmed, particularly in launching ARIKAYCE® and BRINSUPRI®, indicates he will provide valuable commercial execution capabilities to enhance Definium's market impact in mental health treatments.
- Commitment to Scientific Rigor: Adsett expressed admiration for Definium's commitment to scientific rigor in mental health, indicating his dedication to translating clinical research into valuable therapies, thereby strengthening the company's leadership position in the industry.
- Educational Background and Experience: With an MBA from the Wharton School at the University of Pennsylvania and a bachelor's degree in English and economics from Bucknell University, Adsett's extensive educational and professional background will provide robust support for Definium's strategic development.
See More
Insmed to Present TPIP Study Findings at PVRI 2026 Congress
- Research Presentation: Insmed will showcase four abstracts on TPIP at the 2026 PVRI congress, including the Phase 3 PALM-PAH study design and topline results from the Phase 2b study, highlighting TPIP's potential in treating pulmonary arterial hypertension.
- Clinical Trial Design: The Phase 2b study recruited 102 adult participants across 44 centers to evaluate the efficacy and safety of TPIP, with patients self-administering doses up to 640 µg daily, aimed at improving pulmonary vascular resistance.
- Market Potential Analysis: With approximately 35,000 patients diagnosed with pulmonary arterial hypertension in the U.S. and 40,000 in the EU5, there is significant market demand for TPIP as a potential treatment option, reflecting Insmed's commitment to addressing unmet medical needs.
- Strategic Development Direction: The TPIP research not only lays the groundwork for multiple upcoming Phase 3 clinical trials but also underscores Insmed's ongoing investment and innovation in rare diseases, aiming to enhance patient quality of life.
See More
Insmed to Present TPIP Research Findings at PVRI 2026 Congress
- Research Presentation: Insmed will present four abstracts on TPIP at the 2026 PVRI congress, including the Phase 3 PALM-PAH study design, highlighting its potential in treating pulmonary arterial hypertension (PAH), which may enhance the company's market position in this field.
- Clinical Data Review: An encore presentation of the Phase 2b trial results for TPIP will provide an in-depth analysis of its efficacy and safety, potentially boosting investor confidence in Insmed's future developments.
- New Technology Application: New data from Functional Respiratory Imaging analysis will be showcased, further supporting TPIP's application in PAH patients, which could open new treatment avenues and market opportunities for the company.
- Future Development Plans: Insmed plans to initiate multiple Phase 3 programs aimed at improving patient outcomes, demonstrating the company's ongoing commitment and strategic positioning in innovative drug development.
See More
Roth Initiates Insmed (INSM) at Buy with $212 Price Target, Sees Strong Sales Potential
- Optimistic Sales Outlook: Roth has initiated coverage on Insmed (INSM) with a Buy rating, anticipating that Brinsupri (brensocatib) and Arikayce (amikacin liposome inhalation suspension) will achieve above-consensus sales, indicating strong market potential for the company's products.
- Price Target Set: The analyst has set a price target of $212, representing approximately 32% upside from the January 22 close, reflecting market confidence in Insmed's future growth trajectory.
- Peak Sales Forecast: Analyst Adam Walsh projects peak sales of $8.1 billion for Brinsupri and $1.3 billion for Arikayce, showcasing Insmed's robust performance in the therapeutic space.
- New Drug Potential: Walsh also highlighted the potential of treprostinil palmitil inhalation powder (TPIP) for pulmonary arterial hypertension, with probability-adjusted peak sales expected to reach $5 billion following positive mid-stage trial results anticipated in June 2025, further enhancing the company's market outlook.
See More
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- Clinical Data Potential: Roth analysts believe that upcoming clinical data later this year, combined with above-consensus expectations for Insmed's lead drug Brinsupri, could drive significant stock price appreciation, indicating a robust market outlook.
- Sales Performance Exceeds Expectations: Brinsupri achieved first full-quarter sales of $144.6 million post-FDA approval, significantly surpassing market expectations of $65 million, demonstrating strong market acceptance in treating non-cystic fibrosis bronchiectasis.
- Revenue Forecast Upgrade: Analysts project 2026 revenue to reach $1.2 billion, notably higher than the pre-announcement consensus of $726 million, indicating Insmed's competitive edge and future growth potential in the market.
- Pipeline Diversity: Insmed's broader pipeline offers additional growth potential beyond its lead assets, particularly with positive data from the TPIP drug targeting pulmonary arterial hypertension, which could position it as a best-in-class therapy and enhance the company's long-term outlook.
See More
