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Insulet Corp. (PODD)
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Insulet Corp. (PODD) DCF Valuation

Why we don't show a single “fair value” for PODD

Even the optimistic scenario of a conservative trailing-FCF model ($67.88) sits far below today's price — the market is paying for growth and durability beyond what this model structure captures. The honest lens is the question below: what growth does today's price actually require? The model scenarios are listed further down for reference.

What would today's price require?

Growth the price assumes+44.7%/yr
Actual revenue growth, last 5 years+24.8%/yr

$148.88 is justified only if free cash flow grows about +44.7% a year (fading to 2.5% long-run) at a 11.2% required return — faster than the company has actually grown.

ScenarioFCF growth (fading to 2.5%)DiscountValue / share
Conservative15.0%/yr12.2%$42.14
Base case18.0%/yr11.2%$54.23
Optimistic20.0%/yr10.2%$67.88

Current Price

$148.88

Market-Implied Growth

+44.7%/yr

vs +24.8% 5Y actual

Base-Case Model Value

$54.23

model output — not a price target

PODD DCF Fair Value Calculator

Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for PODD (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.

18%/yr
Historical FCF CAGR: 3Y 79.4% · 5Y 79.4% · 10Y 79.4%
11.2%
2.5%
10yr

Base inputs: FCF $187.8M · 0.07B shares · net debt $285.8M

Estimated Fair Value

$91.81

-38.3% vs $148.88

Current price$148.88

Sensitivity — fair value by discount rate × terminal growth

How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 18.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $148.88; red = below. Your current case is outlined.

WACC ↓ / Terminal →1.50%2.00%2.50%3.00%3.50%
9.2%$116$122$128$136$145
10.2%$98.79$103$108$113$119
11.2%$85.34$88.40$91.81$95.63$99.95
12.2%$74.58$76.89$79.43$82.25$85.40
13.2%$65.80$67.57$69.51$71.64$73.99

About Insulet Corp.

Insulet Corporation develops, manufactures, and sells insulin delivery systems for people with insulin-dependent diabetes in the United States and internationally. The company offers Omnipod platform products comprising Omnipod 5 automated insulin delivery system, which includes a proprietary AID algorithm embedded in the pod that integrates with a third-party continuous glucose monitor to obtain glucose values through wireless Bluetooth communication; Omnipod DASH insulin management system that features a Bluetooth enabled pod that is controlled by a smartphone-like personal diabetes manager with a color touch screen user interface; and the Omnipod Insulin Management System. It also provides pods for Amgen for use in the Neulasta Onpro kit, which is a delivery system to help reduce the risk of infection after intense chemotherapy. The company sells its products to end-users through the pharmacy channel; and independent distributors. Insulet Corporation was incorporated in 2000 and is headquartered in Acton, Massachusetts.

Acton, MA
5,400 employees
Healthcare / Medical - Devices
Sector
Healthcare
Industry
Medical - Devices
CEO
Ashley A. McEvoy