The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2026-07-07), Inspire Medical Systems's share price is $49.45.
Inspire Medical Systems's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was $4.49. Therefore, Inspire Medical Systems's PE Ratio for today is 11.01.
During the past 11 years, Inspire Medical Systems's highest PE Ratio was 1182.50. The lowest was 8.92. And the median was 67.99.
During the past 11 years, Inspire Medical Systems's highest 3-Year average EPS without NRI Growth Rate was 31.00% per year. The lowest was -19.00% per year. And the median was 0.55% per year.
Inspire Medical Systems (NYSE:INSP) PE Ratio Explanation
The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.
In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.
If a company loses money, the PE Ratio becomes meaningless.
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.
Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.
Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio.
PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.
* 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.
For the Medical Devices subindustry, Inspire Medical Systems's PE Ratio, along with its competitors' market caps and PE Ratio 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 PE Ratio vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Inspire Medical Systems's PE Ratio distribution charts can be found below:
* The bar in red indicates where Inspire Medical Systems's PE Ratio falls into.
The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.
Inspire Medical Systems's Share Price of today is $49.45. Inspire Medical Systems's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $4.49.
* 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.
It can also be calculated from the numbers for the whole company:
There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio, Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.
In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.
Inspire Medical Systems (INSP) has a PE Ratio of 11.01 as of Jul. 07, 2026. P/E ratio is the ratio of share price to a company's earnings per share. View historical data on Inspire Medical Systems and its competitors. This is 84% below median its historical median of 67.99. Over the past decade, Inspire Medical Systems' PE Ratio has ranged from 8.92 to 1,182.50.
Is Inspire Medical Systems' PE Ratio too high?
Inspire Medical Systems' current PE Ratio of 11.01 is 84% below median its 10-year median of 67.99. Over the past 10 years, this metric has ranged from a low of 8.92 to a high of 1,182.50. Overall, Inspire Medical Systems has a GF Score™ of 54/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Inspire Medical Systems' PE Ratio compare to ENOV and PRCT?
Inspire Medical Systems' PE Ratio of 11.01 can be compared against companies in the Medical Devices & Instruments industry. Historically, Inspire Medical Systems' own PE Ratio has ranged from 8.92 to 1,182.50 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PE Ratio for a Medical Devices & Instruments company?
A good PE Ratio depends on the Medical Devices & Instruments industry context. However, PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high PE Ratio mean?
A high PE Ratio can signal that a stock is expensive relative to its fundamentals. P/E ratio is the ratio of share price to a company's earnings per share. View historical data on Inspire Medical Systems and its competitors. Inspire Medical Systems's current PE Ratio is 11.01, which is 84% below median its own 10-year median of 67.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Inspire Medical Systems stock overvalued right now?
Based on GuruFocus' analysis, Inspire Medical Systems (INSP) is currently considered Possible Value Trap. The stock's GF Value™ is $216.48, compared to a current price of $49.45 — trading 77.2% below its estimated fair value. The current PE Ratio is 11.01, which is 84% below median its 10-year median of 67.99. Inspire Medical Systems' overall GF Score™ is 54/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PE Ratio calculated?
PE Ratio is calculated from a company's financial statements. For Inspire Medical Systems (INSP), the current PE Ratio is 11.01 as of Jul. 07, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Inspire Medical Systems (INSP) Overvalued in 2026?
Based on GuruFocus' analysis, Inspire Medical Systems stock appears to be undervalued.
The current stock price of $49.45 is trading 77.2% below its estimated GF Value™ of $216.48.
GuruFocus considers Inspire Medical Systems to be Possible Value Trap.
Key valuation signals for INSP:
PE Ratio: 11.01 (84% below median its 10-year median of 67.99)
GF Value™: $216.48 vs. price of $49.45 (77.2% below fair value)
No single metric tells the full story. See the INSP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 All other countries wherein, it generates a majority of its revenue from the United States. Its segment revenues are derived from the sales of its product, the Inspire system, to hospitals and ambulatory surgery centers in the U.S. and in selected countries in Europe and the Asia Pacific region.
54GF Score
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