Insmed (INSM) Stock Undervalued by 54.3% Based on DCF Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 11 2026
0mins
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
19 Analyst Rating
18 Buy
1 Hold
0 Sell
Strong Buy
Current: 104.920
Low
162.00
Averages
219.50
High
263.00
Current: 104.920
Low
162.00
Averages
219.50
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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- Stock Units and Options: The new employees received a total of 97,091 restricted stock units and options to purchase 12,850 shares of common stock at an exercise price of $106.91, demonstrating the company's long-term investment in employee motivation and confidence.
- Vesting Schedule: The restricted stock units have a four-year vesting schedule with 25% vesting annually, while the options vest gradually over four years, ensuring employee stability and loyalty during their tenure with the company.
- Company Overview: Insmed is a global biopharmaceutical company focused on developing first-class therapies to improve the lives of patients facing serious diseases, showcasing its leadership and innovation in the biopharmaceutical industry.
See More
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- Stock Units and Options: The new employees received a total of 97,091 restricted stock units and options for 12,850 shares at an exercise price of $106.91 per share, reflecting the company's commitment to its workforce and its stable performance in the capital markets.
- Vesting Arrangements: The restricted stock units have a four-year vesting schedule with 25% vesting annually, while the options vest gradually over four years, ensuring employee stability during their tenure and promoting long-term commitment to the company.
- Company Background: Insmed is a global biopharmaceutical company focused on developing innovative therapies for serious diseases and has been recognized as one of the best employers in the biopharmaceutical industry, highlighting its leadership position and commitment to its employees.
See More
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- Live Webcast: The event will be webcast live, accessible via the investor relations section of the company's website, and will be archived for 30 days post-event, ensuring that investors who cannot attend live can still access important information, thereby enhancing transparency.
- Company Overview: Insmed is a people-first global biopharmaceutical company focused on delivering first- and best-in-class therapies, particularly in the area of chronic lung diseases with two approved therapies, showcasing its competitive edge and innovative capabilities in the industry.
- Technological Innovation: The company is advancing a diverse portfolio of technologies and treatment modalities, including gene therapy and AI-driven protein engineering, indicating Insmed's leading position in biopharmaceuticals and its strong commitment to addressing patient needs.
See More
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