Assessing Insmed (INSM) Valuation After Strong One Year Return And Recent Share Price Pullback
Insmed (INSM) has been drawing more attention after a period of mixed share performance, with a gain over the past 3 months but a decline over the past month. This has prompted investors to reassess the story.
See our latest analysis for Insmed.
At a share price of $177.12, Insmed has a 90 day share price return of 9.12%, set against a 13.18% share price decline over the past month and a very large 1 year total shareholder return of 165.87%. This points to momentum cooling recently after a sharp longer term rerating as investors reassess growth prospects and risk.
If Insmed's rerating has you thinking about what else is moving in healthcare, it could be a good moment to widen your watchlist with healthcare stocks.
With a large 1 year return, strong recent revenue and net income growth, and a model based on high risk drug development, the key question now is whether Insmed still trades at a discount or if the market is already pricing in future growth.
Most Popular Narrative Narrative: 18% Undervalued
With the current US$177.12 share price set against a narrative fair value near US$214.78, expectations are clearly running ahead of today's quote.
The collective updates highlight a growing conviction that the company is transitioning from a single product story into a broader respiratory growth platform, with multiple value drivers beyond the initial launch.
Curious what kind of revenue ramp, margin shift, and future earnings multiple are being built into that fair value line? The narrative leans on aggressive top line expansion, improved profitability and a premium valuation that assumes Insmed matures into a full respiratory platform rather than a one drug name. The exact mix of growth, margins and P/E behind that US$214.78 number might surprise you.
Result: Fair Value of $214.78 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this hinges on brensocatib clearing regulatory and payer hurdles, and any delay or tougher than expected reimbursement could quickly challenge that underpriced growth story.
Find out about the key risks to this Insmed narrative.
Build Your Own Insmed Narrative
If you are not fully on board with this view or prefer to rely on your own analysis, you can stress test the numbers yourself in just a few minutes and Do it your way.
A great starting point for your Insmed research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
Looking for more investment ideas?
If you only stop at one stock, you risk missing opportunities that fit your style even better, so keep pushing your research a little further.
- Spot potential turnarounds early by scanning these 3571 penny stocks with strong financials that pair smaller market caps with financials that may be stronger than you expect.
- Explore AI-related opportunities by filtering for these 25 AI penny stocks that combine growth potential with focused exposure to artificial intelligence themes.
- Find income-focused ideas with these 14 dividend stocks with yields > 3% that prioritise higher yields while still considering underlying fundamentals.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com