DCF Tool

RMD

Resmed Inc. – Surgical and Medical Instrument Manufacturing
ResMed pioneers innovative solutions that treat and keep people out of the hospital, empowering them to live healthier, higher-quality lives. Its digital health technologies and cloud-connected medical devices transform care for people with sleep apnea, COPD, and other chronic diseases. Its comprehensive out-of-hospital software platforms support the professionals and caregivers who help people stay healthy in the home or care setting of their choice. By enabling better care, the company improves quality of life, reduces the impact of chronic disease, and lowers costs for consumers and healthcare systems in more than 140 countries.
Analysis Results
Intrinsic Value $337.55
Latest Price $218.30
Relative Value 35% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 24.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 24.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 1.59 1.47
2024 1.99 1.7
2025 2.48 1.96
2026 3.1 2.26
2027 3.87 2.61
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 63.4 billion. This corresponds to a present value of 39.4 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 9.99 billion. Adding in the terminal value gives a total present value of 49.4 billion.

There are presently 146.0 million outstanding shares, so the intrinsic value per share is 337.55.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,931,478,000
Current Cash 273,710,000
Current Liabilities 689,299,000
Current Debt 9,916,000
Non-Cash Working Capital (NCWC) 978,385,000
Change in NCWC 598,672,000
EBIT 991,800,000
Tax Provision 181,046,000
Depreciation and Amortization 193,841,000
Capital Expenditure -156,036,000
Unlevered Free Cash Flow 1,441,327,910
Current Assets 1,574,757,000
Current Cash 295,278,000
Current Liabilities 911,766,000
Current Debt 12,000,000
Non-Cash Working Capital (NCWC) 379,713,000
Change in NCWC -89,816,000
EBIT 901,146,000
Tax Provision 409,157,000
Depreciation and Amortization 191,518,000
Capital Expenditure -116,826,000
Unlevered Free Cash Flow 468,769,482
Current Assets 1,523,459,000
Current Cash 463,156,000
Current Liabilities 602,761,000
Current Debt 11,987,000
Non-Cash Working Capital (NCWC) 469,529,000
Change in NCWC 15,290,000
EBIT 784,001,000
Tax Provision 111,414,000
Depreciation and Amortization 181,373,000
Capital Expenditure -105,938,000
Unlevered Free Cash Flow 755,574,291
Current Assets 1,145,366,000
Current Cash 147,128,000
Current Liabilities 555,991,000
Current Debt 11,992,000
Non-Cash Working Capital (NCWC) 454,239,000
Change in NCWC 77,006,000
EBIT 620,153,000
Tax Provision 114,255,000
Depreciation and Amortization 150,795,000
Capital Expenditure -77,342,000
Unlevered Free Cash Flow 634,048,463
Current Assets 1,065,717,000
Current Cash 188,701,000
Current Liabilities 511,249,000
Current Debt 11,466,000
Non-Cash Working Capital (NCWC) 377,233,000
Change in NCWC -84,709,000
EBIT 560,263,000
Tax Provision 205,724,000
Depreciation and Amortization 119,960,000
Capital Expenditure -71,457,000
Unlevered Free Cash Flow 302,961,868
Current Assets 1,644,003,000
Current Cash 821,935,000
Current Liabilities 360,126,000
Current Debt 0
Non-Cash Working Capital (NCWC) 461,942,000
Change in NCWC 112,208,000
EBIT 456,732,000
Tax Provision 76,459,000
Depreciation and Amortization 112,157,000
Capital Expenditure -71,476,000
Unlevered Free Cash Flow 526,225,523
Current Assets 1,419,719,000
Current Cash 731,434,000
Current Liabilities 638,551,000
Current Debt 300,000,000
Non-Cash Working Capital (NCWC) 349,734,000
Change in NCWC -109,940,000
EBIT 435,866,000
Tax Provision 87,157,000
Depreciation and Amortization 86,849,000
Capital Expenditure -67,829,000
Unlevered Free Cash Flow 258,522,634
Current Assets 1,444,182,000
Current Cash 717,249,000
Current Liabilities 267,259,000
Current Debt 0
Non-Cash Working Capital (NCWC) 459,674,000
Change in NCWC 78,735,000
EBIT 409,236,000
Tax Provision 83,030,000
Depreciation and Amortization 73,056,000
Capital Expenditure -71,944,000
Unlevered Free Cash Flow 411,134,805
Current Assets 1,556,209,000
Current Cash 905,730,000
Current Liabilities 269,558,000
Current Debt 18,000
Non-Cash Working Capital (NCWC) 380,939,000
Change in NCWC 82,170,000
EBIT 411,413,000
Tax Provision 85,805,000
Depreciation and Amortization 73,454,000
Capital Expenditure -81,156,000
Unlevered Free Cash Flow 403,990,269
Current Assets 1,448,849,000
Current Cash 876,048,000
Current Liabilities 574,049,000
Current Debt 300,017,000
Non-Cash Working Capital (NCWC) 298,769,000
Change in NCWC -41,000
EBIT 379,589,000
Tax Provision 77,986,000
Depreciation and Amortization 78,280,000
Capital Expenditure -63,579,000
Unlevered Free Cash Flow 317,382,816
Current Assets 1,361,151,000
Current Cash 809,541,000
Current Liabilities 252,852,000
Current Debt 52,000
Non-Cash Working Capital (NCWC) 298,810,000
Change in NCWC -49,698,000
EBIT 294,407,000
Tax Provision 77,095,000
Depreciation and Amortization 85,856,000
Capital Expenditure -54,135,000
Unlevered Free Cash Flow 208,053,287

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