Inspire Medical Systems (Inspire Medical Systems) Intrinsic Value: DCF (Dividends Based) : $ (As of May. 01, 2024)

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What is Inspire Medical Systems Intrinsic Value: DCF (Dividends Based)?

As of today (2024-05-01), Inspire Medical Systems's intrinsic value calculated from the Discounted Dividend model is $.

Note: Discounted Dividend model is only suitable for companies who have a consistant distribution history. If the company's dividends does not remain steady over a long period, results may not be accurate due to the low consistency. The model is also only suitable for predictable companies (Business Predictability Rank higher than 1-Star) with dividend payments. If the company's Predictability Rank is 1-Star or Not Rated, or if the company does not pay dividend, the data will not be stored into our database.

Inspire Medical Systems's Predictability Rank is Not Rated. Thus, this page is only used for demonstration purposes and the DCF related results in the screener and portfolio will appear as zero.

Margin of Safety % (DCF Dividends Based) using Discounted Dividend Model for Inspire Medical Systems is

The historical rank and industry rank for Inspire Medical Systems's Intrinsic Value: DCF (Dividends Based) or its related term are showing as below:

INSP's Price-to-DCF (Dividends Based) is not ranked ^*
in the Medical Devices & Instruments industry.
Industry Median: 1.63
* Ranked among companies with meaningful Price-to-DCF (Dividends Based) only.

Inspire Medical Systems Intrinsic Value: DCF (Dividends Based) Historical Data

The historical data trend for Inspire Medical Systems's Intrinsic Value: DCF (Dividends Based) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Inspire Medical Systems Intrinsic Value: DCF (Dividends Based) Chart

Inspire Medical Systems Annual Data

Trend

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Intrinsic Value: DCF (Dividends Based)

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Inspire Medical Systems Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Intrinsic Value: DCF (Dividends Based)	Get a 7-Day Free Trial															-	-	-	-	-

Competitive Comparison of Inspire Medical Systems's Intrinsic Value: DCF (Dividends Based)

For the Medical Devices subindustry, Inspire Medical Systems's Price-to-DCF (Dividends Based), along with its competitors' market caps and Price-to-DCF (Dividends Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Inspire Medical Systems's Price-to-DCF (Dividends Based) Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Inspire Medical Systems's Price-to-DCF (Dividends Based) distribution charts can be found below:

* The bar in red indicates where Inspire Medical Systems's Price-to-DCF (Dividends Based) falls into.

Inspire Medical Systems Intrinsic Value: DCF (Dividends Based) Calculation

This is the intrinsic value calculated from the Discounted Dividend Model with default parameters. The calculation method is the same as Discounted Cash Flow model except adjusted dividend are used in the calculation instead of free cash flow. This is the default method of calculation with GuruFocus DCF calculator.

Usually a two-stage model is used in calculating the intrinsic value with discounted cash flow model. The first stage is called growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DDM calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 11%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.67%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Dividend Growth Rate in the growth stage: g1 = %
The Growth Rate in the growth stage is initially set as the default 10-Year Dividend Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year Dividend Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year Dividend Growth Rate.
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=>

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Dividends per Share: adjusted dividends per share = $.
GuruFocus uses adjusted dividends per share by default to ensure that the valuation reflects the total value of the company, as the actual dividend is only a portion of the total value.

All of the default settings can be changed in the DCF calculator and the results are calculated automatically.

Inspire Medical Systems's Intrinsic Value: DCF (Dividends Based) for today is calculated as:

Intrinsic Value: DCF (Dividends Based)	=	Dividends per Share	*	{[(1+g1)/(1+d)	+	(1+g1)^2/(1+d)^2	+	...	+	(1+g1)^10/(1+d)^10]
	+	(1+g1)^10/(1+d)^10	*	[(1+g2)/(1+d)	+	(1+g2)^2/(1+d)^2	+	...	+	(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+)/(1+0.11) =
and y = (1+g2)/(1+d) = (1+)/(1+0.11) =

Intrinsic Value: DCF (Dividends Based)

Dividends per Share

{[x

x^2

...

x^10]

x^10

y^2

...

y^10]}

Dividends per Share

(1-x^10)

(1-x)

x^10

(1-y^10)

(1-y)]

Margin of Safety % (DCF Dividends Based)	=	(Intrinsic Value: DCF (Dividends Based)	-	Current Price)	/	Intrinsic Value: DCF (Dividends Based)
	=	(	-	241.66)	/

Inspire Medical Systems (NYSE:INSP) Intrinsic Value: DCF (Dividends Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book per Share, Graham Number, Median PS Value etc, discounted Dividends model evaluates the companies based on their power of future dividend distribution instead of their assets.

Be Aware

What you need to know about Discounted Dividends model:

1. The Discounted Dividends model evaluates a company based on its future dividends distribution power
2. Dividend growth is taken into account; therefore a company with a higher dividend growth rate is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies with consistently steady dividends distributed.
4. The Discounted Dividends model works poorly for inconsistent dividends distributor like high growth companies.
5. Your expected return from the investment is a reasonable discount rate assumption.
6. A larger margin of safety should be required for companies with less dividends distributed.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) and Intrinsic Value: DCF (Dividends Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.

Inspire Medical Systems Intrinsic Value: DCF (Dividends Based) Related Terms

Thank you for viewing the detailed overview of Inspire Medical Systems's Intrinsic Value: DCF (Dividends Based) provided by GuruFocus.com. Please click on the following links to see related term pages.

Inspire Medical Systems (Inspire Medical Systems) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Inspire Medical Systems Inc (NYSE:INSP) » Definitions » Intrinsic Value: DCF (Dividends Based)

Comparable Companies

Traded in Other Exchanges

2DR:Germany 2DR:Germany

Address

5500 Wayzata Boulevard, Suite 1600, Golden Valley, MN, USA, 55416

Website

https://www.inspiresleep.com

Inspire Medical Systems Inc operates as a medical technology company. It focuses on the development and commercialization of minimally invasive solutions for patients with obstructive sleep apnea (OSA). It offers Inspire system, a neurostimulation technology that provides a safe and effective treatment for moderate to severe obstructive sleep apnea. The firm has operating footprints in the United States and Europe wherein, it generates a majority of its revenue from the United States.

Executives

Timothy P. Herbert	director, 10 percent owner, officer: CEO and President	C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Jerry C Griffin	director	887L INDUSTRIAL ROAD, SAN CARLOS CA 94070
Carlton Weatherby	officer: Chief Strategy Officer	C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Steven Jandrich	officer: Chief Comp Off & VP, Human Res	C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Philip Ebeling	officer: Chief Operating Officer	INSPIRE MEDICAL SYSTEMS, INC., 5500 WAYZATA BLVD., SUITE 1600, GOLDEN VALLEY MN 55416
John Rondoni	officer: Chief Technology Officer	C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Richard Buchholz	officer: Chief Financial Officer	C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Randy Ban	officer: Senior VP. & Sales & Marketing	C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Marilyn C Nelson	director	C/O EXXON MOBIL CORP, 5959 LAS COLINAS BLVD., IRVING TX 75039-2298
Cynthia Burks	director	C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Charisse Y Sparks	director	C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Georgia Melenikiotou	director	C/O INSPIRE MEDICAL SYSTEMS, INC., 5500 WAYZATA BOULEVARD, SUITE 1600, GOLDEN VALLEY MN 55416
Bryan K Phillips	officer: See Remarks	9924 WEST 74TH STREET, EDEN PRAIRIE MN 55344
Shelley G. Broader	director	880 CARILLON PARKWAY, ST. PETERSBURG FL 33702
Casey M Tansey	director, 10 percent owner	2735 SAND HILL ROAD, MENLO PARK CA 94025