- Wondering whether Insight Enterprises at US$90.59 is offering value or just noise at the current price? This article walks you through what the numbers are actually saying about the stock.
- The share price has risen 2.7% over the last 7 days and 18.5% over the last 30 days, although it is still down 33.0% over the past year and 12.1% over 5 years. This combination of moves can change how you think about both risk and potential reward.
- These moves are drawing more attention to Insight Enterprises as investors reassess where the stock fits in their portfolios. With no major single headline driving the latest shift, it makes sense to focus on the underlying valuation signals rather than short term sentiment.
- Simply Wall St currently gives Insight Enterprises a valuation score of 3 out of 6. The rest of this article looks at how different methods like discounted cash flow, multiples and price based checks arrive at that view, before finishing with a broader way to think about what the valuation really means for you.
Find out why Insight Enterprises's -33.0% return over the last year is lagging behind its peers.
Approach 1: Insight Enterprises Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow model projects a company’s future cash flows and then discounts those back to today’s dollars to estimate what the business could be worth right now. For Insight Enterprises, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flows available to shareholders.
The latest twelve month free cash flow is reported at about $223.9 million. Analysts provide an explicit forecast of $250 million for 2027, and Simply Wall St extrapolates further, with projected free cash flow figures through 2035 ranging from about $334 million in 2026 to around $212.8 million in 2035, before discounting.
After discounting these projected cash flows back to today, the DCF model arrives at an estimated intrinsic value of about $83.05 per share, compared with the current share price of $90.59. That implies Insight Enterprises is around 9.1% above this DCF estimate, which represents a relatively modest gap.
Result: ABOUT RIGHT
Insight Enterprises is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act.
Approach 2: Insight Enterprises Price vs Earnings
For a profitable company, the P/E ratio is a useful checkpoint because it ties what you pay directly to the earnings the business is already generating. A higher or lower P/E often reflects what the market thinks about future growth and risk, with stronger growth or lower perceived risk typically justifying a higher multiple, and slower growth or higher risk pointing to a lower one.
Insight Enterprises currently trades on a P/E of 15.21x. That sits below both the Electronic industry average of about 30.67x and a peer group average of 20.47x, which may suggest the stock is priced more cautiously than many competitors. To sharpen that view, Simply Wall St uses a proprietary “Fair Ratio” that estimates what P/E might make sense for this specific company, given factors like its earnings growth profile, industry, profit margins, market cap and risk characteristics.
This Fair Ratio for Insight Enterprises is 26.89x, and it is designed to be more tailored than a simple comparison with peers or the broad industry because it adjusts for company specific strengths and risks rather than assuming all stocks deserve the same multiple. With the actual P/E of 15.21x sitting meaningfully below the Fair Ratio, the stock screens as undervalued on this metric.
Result: UNDERVALUED
P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 18 top founder-led companies.
Upgrade Your Decision Making: Choose your Insight Enterprises Narrative
Earlier it was mentioned that there is an even better way to understand valuation, so Narratives are introduced as a simple tool that lets you attach a clear story to your numbers by linking your view of Insight Enterprises, your forecast for its revenue, earnings and margins, and the fair value that drops out of those assumptions.
On Simply Wall St, Narratives sit inside the Community page and are used by millions of investors to compare fair value with the current share price in a clear way. This can help you decide whether Insight Enterprises looks closer to a US$120.0 story or a US$90.0 story for example, and to see how that compares with a consensus view around US$103.75.
Because Narratives update when new earnings, news or valuation inputs are added, you can see how a more optimistic view that ties Insight Enterprises to higher long term earnings and a P/E near 15x differs from a more cautious view that keeps the P/E nearer 13x. You can then judge which story lines up best with your own expectations before acting on the difference between fair value and price.
For Insight Enterprises, here are previews of two leading Insight Enterprises Narratives to make comparison easier:
🐂 Insight Enterprises Bull Case
Fair value in this bullish narrative: US$120.00 per share.
Gap between this fair value and the current US$90.59 share price: about 24.5% below the narrative fair value.
Revenue growth assumption in this narrative: 1.88% a year.
- AI, cloud and higher margin services are expected to play a bigger role in gross profit, with more recurring income and a larger addressable market.
- Cost actions, automation and efficiency programs are aimed at improving operating leverage as device and infrastructure refresh demand feeds into cash flows.
- The bullish view still flags real risks around industry shifts, acquisition execution and client concentration, which could pressure revenue stability and margins if they do not break in Insight Enterprises's favor.
🐻 Insight Enterprises Bear Case
Fair value in this bearish narrative: US$90.00 per share.
Gap between this fair value and the current US$90.59 share price: about 0.7% above the narrative fair value.
Revenue growth assumption in this narrative: 1.89% a year.
- Cloud program changes, slower device refresh cycles and cautious enterprise spending are treated as ongoing headwinds for both product and services revenue.
- Planned cost reductions are expected to help margins, but higher interest costs and execution risk around refresh timing keep a lid on net earnings expectations.
- The bearish view still uses similar long term revenue and earnings levels to the bulls, but applies a lower P/E multiple and places more weight on cloud headwinds, large client exposure and macro sensitive decision delays.
If you want to see how these bullish and bearish storylines expand into full projections, compare the detailed Narratives side by side and then stress test them against your own expectations for Insight Enterprises, the Community page is the next logical step, starting with See what the community is saying about Insight Enterprises.
Do you think there's more to the story for Insight Enterprises? Head over to our Community to see what others are saying!
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.
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