Insight Enterprises, Inc. (NSIT) DCF Valuation & Fundamental Primer
Insight Enterprises, Inc. (NSIT) currently trades at — with an enterprise value of $7.54B. Our proprietary institutional model rates Insight Enterprises, Inc. at 70/100 (Grade: B+ · Quality Software Operator).
Institutional fundamental teardown of Insight Enterprises, Inc. (NSIT) covering SEC 10-K/10-Q cash flow conversion, SBC dilution friction, and Reverse-DCF valuation hurdles.
Insight Enterprises, Inc. (NSIT) 3-Scenario DCF Valuation Range
Stress-test NSIT's 5-year growth, target FCF margin, WACC, terminal methodology, and SBC/dilution friction in real time.
Split between 5-Year Explicit Cash Flows and Discounted Terminal Value
2D Institutional Valuation Sensitivity Heatmap
Implied share price & upside/downside spread across 25 valuation states (Current Price: —).
| WACC \ Terminal | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% |
|---|---|---|---|---|---|
| 8.5% | $357.05 N/M | $380.05 N/M | $406.88 N/M | $438.59 N/M | $476.64 N/M |
| 9.3% | $319.26 N/M | $337.38 N/M | $358.18 N/M | $382.31 N/M | $410.64 N/M |
| 10.0% | $288.14 N/M | $302.70 N/M | $319.21 N/M | $338.08 N/M | $359.85 N/M |
| 10.8% | $262.06 N/M | $273.97 N/M | $287.32 N/M | $302.40 N/M | $319.55 N/M |
| 11.5% | $239.89 N/M | $249.77 N/M | $260.74 N/M | $273.00 N/M | $286.80 N/M |
Institutional Software Quality Scorecard (70/100 · Grade B+)
Solid software model with clear operating leverage, partially offset by standard SBC or moderate burn.
Elite deferred revenue float; FCF exceeds operating income by >20%
Minimal dilution friction; management compensation aligned with shareholders
Sub-par gross margins; higher cost of delivery or hardware/services mix
Moderate leverage or cash burn; monitor liquidity runway
Core Investment Strengths & Moats
- High-grade cash conversion: FCF is 151% of EBIT driven by upfront annual collections
- Low dilution friction: SBC is only 0.4% of revenue
Key Operational & Dilution Risks
- Lower software gross margins (20.3%), indicating higher hosting or service delivery drag
Insight Enterprises, Inc. (NSIT) 5-Year Fundamental Forecast
| Statement Line Item | TTM Audited Base | TTM | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|---|---|
| Revenue | $8.70B | $8.70B | $8.79B | $8.89B | $8.98B | $9.08B | $9.18B |
| Gross Profit | $1.77B | $1.77B | $1.79B | $1.80B | $1.82B | $1.84B | $1.86B |
| Operating Income (EBIT) | $388.6M | $389.0M | $393.1M | $397.3M | $401.6M | $405.9M | $410.2M |
| Stock-Based Compensation (SBC) | $34.0M | $33.9M | $34.3M | $34.7M | $35.0M | $35.4M | $35.8M |
| Unlevered Free Cash Flow (FCF) | $586.1M | $586.5M | $592.8M | $599.1M | $605.5M | $612.0M | $618.6M |
| SBC-Adjusted True Cash Flow | $552.1M | $552.6M | $558.5M | $564.4M | $570.5M | $576.6M | $582.8M |
Software & Cloud Services Peer Comparables & Rule of 40 Regression
Rule of 40 vs. EV / Revenue Multiple Regression
OLS Fit: EV/Rev = -30.2 + 0.82 × (Rule of 40) · R² = 79%Stocks below the gold regression line trade at a discount relative to their Rule of 40 compounding efficiency.
| Company | Ticker | Market Cap | TTM Revenue | Gross Margin | FCF Margin | Rule of 40 | SBC % Rev | EV / Rev |
|---|---|---|---|---|---|---|---|---|
| Insight Enterprises, Inc. | NSIT | — | $8.70B | 20.3% | 6.7% | 7.8% | 0.4% | — |
| ServiceNow | NOW | $152.61B | $10.98B | 79.2% | 31.1% | 54.2% | 15.9% | 13.9× |
| Workday, Inc. | WDAY | $50.35B | $8.00B | 75.0% | 27.4% | 43.9% | 19.0% | 6.4× |
| Salesforce | CRM | $217.10B | $37.90B | 77.2% | 32.8% | 42.8% | 8.4% | 5.8× |
| Datadog | DDOG | $46.05B | $2.68B | 80.8% | 31.1% | 57.7% | 21.3% | 17.4× |
| Snowflake Inc. | SNOW | $71.79B | $3.63B | 66.5% | 25.2% | 57.7% | 40.8% | 20.0× |
| Hubspot | HUBS | $19.89B | $2.63B | 85.0% | 21.3% | 52.7% | 19.2% | 7.7× |
| Peer Cohort Median Benchmark (N=6) | 78.2% | 29.2% | 53.5% | 19.1% | 10.8× | |||
EV / Revenue Multiple Compression Stress Test
| Multiple Scenario | EV / Revenue | Implied Enterprise Value | Implied Equity Value | Implied Share Price | Delta vs Current |
|---|---|---|---|---|---|
| Current Multiple | 0.2× | $1.88B | $792.2M | $25.00 | 0.0% |
| -20% Multiple Compression | 0.2× | $1.50B | $416.6M | $13.15 | -20.0% |
| -35% Multiple Compression | 0.1× | $1.22B | $134.9M | $4.26 | -35.0% |
| Software Baseline Floor (5.0× EV/Rev) | 5.0× | $43.51B | $42.42B | $1,338.72 | +2216.6% |
Frequently Asked Questions: Insight Enterprises, Inc. (NSIT) Valuation
What is Insight Enterprises, Inc. (NSIT)'s intrinsic DCF valuation and implied share price?
Based on audited SEC 10-K/10-Q filings and a 5-year 3-statement discounted cash flow (DCF) model, Insight Enterprises, Inc. (NSIT) has a Base Case implied value of N/A per share (with a Bear Case of N/A and a Bull Case of N/A), compared to its current price of market price. The model discounts projected free cash flows at a 10.0% WACC and a 2.5% terminal growth rate.
What is Insight Enterprises, Inc. (NSIT)'s Rule of 40 score and Free Cash Flow margin?
Insight Enterprises, Inc. achieves a Rule of 40 score of 7.8%, combining a 1.1% revenue growth run-rate with a 6.7% TTM free cash flow margin on $8.70B in trailing twelve-month revenue. In the Software & Cloud Services peer cohort, the median Rule of 40 benchmark is 53.5%.
What revenue growth rate is priced into NSIT stock according to Reverse-DCF analysis?
At market price per share (Enterprise Value of N/A), our Reverse-DCF solver indicates the market is pricing in a 5-year implied revenue CAGR of 1.1%, compared to Insight Enterprises, Inc.'s historical CAGR of 1.1%. Overall market expectations are rated as "Fairly Priced to Fundamentals".
How does Insight Enterprises, Inc. compare to Software & Cloud Services software peers?
Insight Enterprises, Inc. (NSIT) earns an institutional Software Quality Score of 70/100 (Grade B+ — Quality Software Operator). Across its Software & Cloud Services peer group (NOW, WDAY, CRM, DDOG, SNOW), the cohort trades at a median EV/TTM Revenue multiple of 10.8× and a median gross margin of 78.2%.
How does Stock-Based Compensation (SBC) impact Insight Enterprises, Inc. (NSIT)'s valuation?
Insight Enterprises, Inc. recorded $34.0M in TTM stock-based compensation (0.4% of revenue). When treating SBC as a cash-equivalent compensation expense, Insight Enterprises, Inc.'s SBC-adjusted free cash flow yield is evaluated directly in our 3-statement model, scoring 25/25 on our Shareholder Dilution Friction pillar.