Insulet Corporation

Methodology

Insulet's Omnipod tubeless insulin pump generates growing earnings visibility from Type 1 and Type 2 diabetes adoption, pharmacy channel expansion, and international growth. Recurring pod revenue creates predictability. The calculation works well for this medical device growth company with clear adoption runway and expanding addressable market.

Methodology

Insulet consistently commands premium PEG ratios reflecting strong growth from Omnipod adoption, pharmacy distribution advantages, and international expansion potential. While expensive on absolute terms, the tubeless differentiation and market opportunity justify valuations. Compare to Insulet's historical range and diabetes device peers like Dexcom and Tandem.

Methodology

Insulet pays no dividend, making PEGY equal to PEG as management prioritizes investments in manufacturing capacity, international expansion, and product development. Capital allocation focuses entirely on growth initiatives in diabetes management. For this medical device growth story, market penetration and margin expansion matter far more than current shareholder income.