NSIT
Insight Enterprises, Inc.
$175.87
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 79.0% above fair value
You pay
$175.87
Bear
$78.60
Fair
$98.25
Bull
$117.90
Bear
$78.60
-55.3%
$6.55 × 12x P/E
Fair
$98.25
-44.1%
$6.55 × 15x P/E
Bull
$117.90
-33.0%
$6.55 × 18x P/E
Adjust Assumptions
15.0x
6.55$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
26.9x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (7 analysts)
$143.33
Divergence from AlphaVal
31%
Summary
Applying a 15x P/E to adjusted EPS of $6.55, the base-case value is $98.25 per share.
Warnings
The company's reported profits differ from official accounting profits by 35%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $143.33 (from 7 analysts). Our estimate is 31% below the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples