NSIT
Insight Enterprises, Inc.
$97.73
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 11.5% above fair value
You pay
$97.73
Bear
$70.10
Fair
$87.62
Bull
$105.14
Bear
$70.10
-28.3%
$5.84 × 12x P/E
Fair
$87.62
-10.3%
$5.84 × 15x P/E
Bull
$105.14
+7.6%
$5.84 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
16.7x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $87.50 from 7 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $87.62 per share.
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