This report recommends buying Insight Enterprises (NSIT) stock with a price target of $36.52. It summarizes Insight's business as a leading global provider of IT solutions and products for commercial and government clients. Financially, Insight has strong free cash flow, revenue growth, and acquires companies to expand its offerings. A discounted cash flow valuation implies the stock is undervalued with a fair value estimate of $47.41 per share.

1. Source:
Insight Enterprises (NSIT)
Recommendation: Buy
Analysts
Cameron Engel Carl Schiro
cengel@nd.edu cschiro@nd.edu
Price Target: $36.52

2. Source:
Company Overview
Geographic BreakdownBackground
Form 10k, www.insight.com
• Headquartered in Tempe, Arizona
• Leading global provider of IT solutions and
products for both commercial and
government clients
• Act as a consultant and middleman to
businesses looking to improve their
technology infrastructure.
• Publicly traded on the NASDAQ
• One of the ten largest IT hardware, software,
and services providers in the world.
68%
27%
5%
Total Sales
North America
Europe and the
Middle East
Asia Pacific
Revenue by Offering Sector Awards Won by Insight Enterprises

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Financial & Industry Metrics
Industry Comparisons
Financial Summary Stock Charts (5 Yr. & 1 Yr.)
S&P Capital IQ, www.insight.com, Form 10 Q,, Yahoo Finance
Current Price $60.29
52 Week Price Range $42.53 - $71.50
50-Day Moving Average $63.86
Estimated Beta 1.27
Market Cap 31.27B
Shares Out (mil) 497.10
Average Daily Vol (mil) 7.40
Institutional Ownership 84.96%
Insider Ownership 0.52%
Dividend Yield 2.61%
NTM P/E 8.90
EV/EBITDA 3.80
Debt/EV 0.22x
Gross Margin (LTM) 7.9%
EBITDA Margin (LTM) 8.0%
Stock Data
Current Price 27.54
52 Week Price Range 21.59-32.80
50-Day Moving Average 25.92
Estimated Beta 1.03
Market Cap (mil) 1021.5
Shares Out (mil) 37.09
Average Daily Vol (mil) 0.16
Institutional Ownership 98.90%
Insider Ownership 1.10%
Dividend Yield -
NTM P/E 13.3
EV/EBITDA 5.42
Debt/EV 6.00%
Gross Margin (LTM) 13%
EBITDA Margin (LTM) 3.20%
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Key Metric NSIT Industry
EV/EBITDA 5.42x 6.7x
EV/Revenue 0.17x 0.20x
Price/Earnings 13.08x 12.0x

4. Source:
Strategic Positioning
Solutions Offerings and Product Expertise Global Scale
Strength of Partners
• Offering various and high-quality solutions,
Insight has partnered with some of the
leading companies in the world to deliver its
products efficiently and effectively
• Microsoft’s largest global partner
• Top 5 Market Position with Dell, HP, Lenovo,
and Adobe
• Other partners include SAP, Intel, IBM, Oracle,
Panasonic, and BlackBerry
Operational Effectiveness
Form 10k and 10Q, Yahoo Finance, www.insight.com
• Insight has well-developed service
capabilities in the hardware and software
fields.
• Have 1,200 skilled, certified consulting and
delivery professionals
• Understands complex licensing requirements
and knows how to optimize client’s usage
through a robust portfolio of Software Asset
Management (SaaS) services
• Has unique approach to deliver products to
customers effectively
• Offers customizable client portals that allow
clients to streamline acquisitions and
processes through self-service online tool
• Has “direct ship programs” with many of its
partners, allowing the company to increase
its product without increasing inventory

5. Source:
Growth Strategy
Acquisitions
• Insight has transformed from a basic
reseller of computer products to a global IT
solutions provider by acquiring a variety of
companies
• 153% Free Cash Flow (FCF) growth
during that span has allowed them to
do this
• Software Spectrum, Inc. in 2006
• Calence, LLC and MINX Limited in 2008
• Bluemetal in October (will help with
competing in the cloud in the future)
Customizable Business Services
• Constantly engaged with top IT partners in
creating, acquiring, implementing, and
managing solutions that combine the
company’s offerings to ensure maximum
performance
• Delivered to clients through a large range of
mechanisms, including on premise, remotely,
or through Cloud
• Focus of scalable services include integrated
collaboration, omni-channel retail, workforce
mobility, and strategic outsourcing
Cloud Growth and Projections
Developing Cloud Business
• Global Public Cloud Market Size has grown
from $5.82 billion in 2008 to $78.42 billion in
2014
• Exceptional growth to continue through 2020
• Has unique Cloud strategy that differentiates
it from competitors
• Plans on expanding Cloud portfolio to include
SaaS and IaaS in areas of office collaboration,
data protection, and security
• Company investing in migration services to
help move customers from the traditional IT
computing to Cloud computing
Forbes, www.insight.com, Form 10K , S&P Cap IQ

6. Source:
Comparable Companies
LTM 2015E LTM 2015E LTM 2015E
PCCC PC CONNECTION INC $20.53 $542.22 $469.72 0.2x 0.2x 5.7x 5.6x 12.2x 11.9x
TECD TECH DATA CORP 73.96 2641.00 2270.00 0.1x 0.1x 5.4x 6.3x 15.1x 12.7x
IM INGRAM MICRO INC 29.39 4580.00 5000.00 0.1x 0.1x 8.7x 6.5x 13.0x 9.6x
SNX SYNNEX CORP 92.11 3640.00 4070.00 0.3x 0.3x 9.0x 8.5x 17.1x 13.8x
75th Percentile 78.50 3875.00 4302.50 0.2x 0.2x 8.8x 7.0x 15.6x 13.0x
Mean 54.00 2850.81 2952.43 0.2x 0.2x 7.2x 6.7x 14.4x 12.0x
Median 51.68 3140.50 3170.00 0.1x 0.1x 7.2x 6.4x 14.1x 12.3x
25th Percentile 27.18 2116.31 1819.93 0.1x 0.1x 5.6x 6.1x 12.8x 11.3x
NSIT INSIGHT ENTERPRISES $27.54 $1,021.50 $898.60 0.17x 0.17x 5.42x 4.87x 13.16x 13.08x
Implied EV (mean) $896.28 $908.60 $1,193.04 $1,240.76 $992.31 $808.79
Implied EV (median) $733.32 $732.31 $1,193.87 $1,179.88 $967.48 $832.07
Implied Market Cap (mean) $1,019.08 $1,031.40 $1,315.84 $1,363.56 $1,115.11 $931.59
Implied Market Cap (median) $856.12 $855.11 $1,316.67 $1,057.08 $1,090.28 $954.87
Margins
1 Year 2 Year 1 Year 2 Year EBITDA
PCCC PC CONNECTION INC $2,479.20 $2,510.00 $82.90 $83.40 1.9% 3.8% 4.9% 3.4% 3.4%
TECD TECH DATA CORP 26,568.30 26,232.00 417.60 362.80 -5.2% -2.7% 2.2% 5.1% 1.3%
IM INGRAM MICRO INC 46,391.80 45,143.50 571.90 765.70 -2.9% 2.8% 2.8% 14.3% 1.6%
SNX SYNNEX CORP 13,612.60 13,340.50 454.40 480.20 -3.6% 4.4% 8.3% 11.3% 3.5%
NSIT INSIGHT ENTERPRISES $5,432.00 $5,424.50 $165.70 $184.50 2.0% 3.3% 1.8% 7.7% 3.2%
LTM EBITDA
2015E
EBITDA
Exp. Revenue Growth Exp. EBITDA Growth
EV/Revenue EV/EBITDA Price/Earnings
Ticker Company Name LTM Revenue
2015E
Revenue
Ticker Company Name Latest Close Price Market Cap
(USDmm)
Enterprise Value
(USDmm)

7. Source:
Financial Performance
Return on Equity Projected Revenue Growth
Free Cash Flow Projection ($MM) Historic EV/EBITDA
2014 Form 10-K, MSN Finance, NDIC Projections, S&P Capital IQ
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
2012 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E
0
1
2
3
4
5
6
2012 2013 2014 2015 2016
0
5
10
15
20
2009 2010 2011 2012 2013 2014

8. Source:
Discounted Cash Flow
S&P Capital IQ,
DCF model
$ in millions 2012 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E
Total Revenue $5,301.4 $5,144.3 $5,316.2 $5,424.5 $5,602.0 $5,761.0 $5,832.4 $5,802.3 $5,917.4
Revenue Growth 0.30% -3.0% 3.3% 2.0% 3.3% 2.8% 1.2% -0.5% 2.0%
Expenses
COGS 4,581.8 4,445.5 4,603.8 4,702.0 4,806.8 5,004.3 5,129.3 5,082.3 5,163.6
Gross Profit 719.6 698.8 712.4 722.5 795.2 756.7 703.1 720.0 753.8
Gross Margin 13.6% 13.6% 13.4% 13.3% 14.2% 13.1% 12.1% 12.4% 12.7%
Operating Expenses 570.4 564.9 571.8 575.4 580.1 585.6 590.2 587.6 594.1
Operating Income (EBIT) 149.2 134.0 140.6 139.5 153.0 171.1 112.9 132.4 159.7
Income Tax 51.9 43.5 48.7 46.6 47.4 52.3 52.4 52.1 52.8
EBIAT 97.3 90.5 91.9 92.9 105.6 118.8 60.5 80.3 106.9
Cash Flow
EBIAT
Non-Cash Items 30.6 18.7 24.0 30.2 33.5 35.2 36.0 34.8 35.7
D&A 41.2 41.5 40.6 45.6 46.6 47.2 48.1 48.6 49.2
Discretionary Cash Flow 169.1 150.7 156.5 168.7 185.7 201.2 144.6 163.7 191.8
Less: Increase in NWC 97.1 55.2 30.0 33.4 55.0 53.0 62.1 64.3 52.3
Less: CapEx 30.2 19.0 10.0 12.2 20.3 16.7 20.2 18.9 16.4
Free Cash Flow 41.8 76.5 116.5 123.1 110.4 131.5 62.3 80.5 123.1
Free Cash Flow Growth 83.0% 52.3% 5.7% -10.3% 19.1% -52.6% 29.2% 52.9%
Unlevered Free Cash Flow 41.8 76.5 116.5
WACC 9.12%
Discount Period 7.5 1.75 2.75 3.75 4.75 5.75
Discount Factor 0.86 0.79 0.72 0.66 0.61
Present Value of Free Cash Flow $94.8 $103.4 $44.9 $53.2 $74.5

9. Source:
DCF Assumptions and Results
WACC Components
Sensitivity Table
DCF Results
DCF
WACC
47.41 7.1% 7.6% 9.1% 8.6% 9.1%
6.3x $37.91 $37.10 $37.10 $35.56 $34.82
6.8x $39.81 $38.95 $38.95 $37.31 $36.53
EV/EBITDA 10.0x $39.81 $38.95 $38.95 $37.31 $36.53
7.5x $42.46 $41.54 $41.54 $39.76 $38.92
8.3x $45.50 $44.49 $44.49 $42.57 $41.65
Enterprise Value
Cumulative Present Value of FCF $370.8
Terminal Value
Terminal Year EBITDA $208.9
Exit Multiple 10.0x
Terminal Value $2,089.0
Discount Factor 60.55%
Present Value of Terminal Value $1,264.8
% of Enterprise Value 77.3%
Enterprise Value $1,635.7
Implied Equity Value and Share Price
Enterprise Value $1,635.7
Less: Total Debt $52.7
Plus: Cash & Cash Equivalents $175.5
Implied Equity Value $1,758.5
Implied Share Price $47.41
Shares Outstanding 37.09
S&P Capital IQ, NDIC valuations, Yahoo Finance
Cost of Equity
Risk-free Rate(1)
2.06%
Market Risk Premium(2)
7.20%
Levered Beta (2 year regression) 1.03
Cost of Equity 9.47%
WACC 9.12%

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Catalysts & Portfolio Strategy
Upside
 By offering a wide array of products and
services, Insight Enterprises will be able to
adjust their focus with respect to global market
trends whether they are positive or negative.
 As cloud computing continues to become a
priority for businesses around the world, Insight
already has the personal and equipment to
capture a larger market segment of cloud
based technology.
 Strong Free Cash Flow and a history of making
strategic acquisitions will increase shareholder
value.
Downside
 A historically high Beta indicates volatility,
meaning any sort of market failure could still
result in the share price of the stock to fall.
 Although Insight Enterprises is far reaching
when it comes to its capabilities, in the IT
solutions industry any sort of technological
advantage held by a competitor could push
Insight out of certain sectors.
 Currency valuation has a substantial impact on
revenue. If international currencies continue to
lose value relative to the dollar, Insight may
lose revenue despite increasing sales in certain
regions.
Portfolio Strategy & Recommendation
We recommend the Notre Dame Investment Club purchase a stake in Insight Enterprises at the final implied Target
Price of $36.52. The company has positioned itself well to compete domestically and internationally in the largest
Information Technology growth sectors. Furthermore, a strong free cash flow will allow the company to continue its
growth strategies and thus increase shareholder value.
Comparables 25.63$ 50%
DCF 47.41$ 50%
Target Price 36.52$ 100%
Final Implied Price
S&P Capital IQ, NDIC valuations,

11. Source:
Appendix 1: Income Statement
S&P Capital IQ

12. Source:
Appendix 2: Balance Sheet
S&P Capital IQ

13. Source:
Appendix 3: Statement of Cash Flows
S&P Capital IQ