As of June 7, 2025, Insperity Inc's estimated intrinsic value ranges from $34.70 to $325.51 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $325.51 | +418.5% |
| Discounted Cash Flow (5Y) | $230.03 | +266.4% |
| Dividend Discount Model (Multi-Stage) | $227.33 | +262.1% |
| Dividend Discount Model (Stable) | $34.70 | -44.7% |
| Earnings Power Value | $65.09 | +3.7% |
Is Insperity Inc (NSP) undervalued or overvalued?
With the current market price at $62.78, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Insperity Inc's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.65 | 0.74 |
| Cost of equity | 6.9% | 9.0% |
| Cost of debt | 5.1% | 7.5% |
| Tax rate | 26.7% | 26.9% |
| Debt/Equity ratio | 0.16 | 0.16 |
| After-tax WACC | 6.4% | 8.5% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $230 | $8,474M | 84.2% |
| 10-Year Growth | $326 | $12,067M | 71.7% |
| 5-Year EBITDA | $233 | $8,573M | 84.4% |
| 10-Year EBITDA | $313 | $11,608M | 70.6% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $166M |
| Discount Rate (WACC) | 8.5% - 6.4% |
| Enterprise Value | $1,952M - $2,582M |
| Net Debt | $(182)M |
| Equity Value | $2,134M - $2,764M |
| Outstanding Shares | 38M |
| Fair Value | $57 - $73 |
| Selected Fair Value | $65.09 |
| Metric | Value |
|---|---|
| Market Capitalization | $2362M |
| Enterprise Value | $2180M |
| Trailing P/E | 37.50 |
| Forward P/E | 13.00 |
| Trailing EV/EBITDA | 13.20 |
| Current Dividend Yield | 385.20% |
| Dividend Growth Rate (5Y) | 9.50% |
| Debt-to-Equity Ratio | 0.16 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $97.65 |
| Discounted Cash Flow (5Y) | 25% | $57.51 |
| Dividend Discount Model (Multi-Stage) | 20% | $45.47 |
| Dividend Discount Model (Stable) | 15% | $5.20 |
| Earnings Power Value | 10% | $6.51 |
| Weighted Average | 100% | $212.34 |
Based on our comprehensive valuation analysis, Insperity Inc's weighted average intrinsic value is $212.34, which is approximately 238.2% above the current market price of $62.78.
Key investment considerations:
Given these factors, we believe Insperity Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.