Insulet Corporation is scored 82 for moat and 79 for management. The management score rests on a return on invested capital of 13.6% and a gross margin of 71.6% — figures that describe a business earning a respectable return on what it employs. Debt sits at 0.69x equity. A wide moat alongside strong management is a combination worth understanding before the price matters at all.
The valuation runs on assumptions chosen to understate rather than flatter. Growth is modelled at 15.0% a year, below the 25.0% actually measured over the last decade — the model caps growth rather than extrapolating a good run forwards. The exit multiple assumed is 30.0x. That produces an intrinsic value of $160.50, a 10-CAP price of $52.18 and a payback time price of $82.38, with the value zone set at the highest of the three, $82.38. Today's price of $130.79 is 59% above it.
A wonderful business at the wrong price is still the wrong price. Insulet Corporation scores well on the business and poorly on the entry point, which is the most common shape in a long bull market.
| Price | $130.79 |
| Market cap | $9.1B |
| P/E ratio | 24.4x |
| Return on invested capital | 13.6% |
| Gross margin | 71.6% |
| Debt to equity | 0.69x |
| Free cash flow yield | 1.9% |
| Growth rate used | 15.0% |
| Growth rate measured | 25.0% |
| Exit multiple assumed | 30.0x |
| Company | Moat | Buy price |
| Align Technology (ALGN) | 51 | $134.51 |
| Zimmer Biomet (ZBH) | 59 | $91.89 |
| Inmode Ltd (INMD) | 53 | $20.78 |
| GE HealthCare Technologies (GEHC) | 23 | $23.16 |
Every number above is built on assumptions that can be changed. In Moatly you can move the growth rate, the exit multiple and the margin of safety and watch every figure recalculate, so you are testing your own view of Insulet Corporation rather than accepting ours.