DCF Studio

    RMD · NYQ · Healthcare

    ResMed Inc.

    Also onShortfallConsensus DriftCrosscheck

    Implied value per share

    USD 202.81

    Market price

    USD 232.94

    Implied upside

    -12.9%

    10-year forecast · Perpetuity growth terminal value · Mid-year discounting · Base case · Price 2026-11-02 · Accounts to 2026-06-30

    Value Per Share

    Perpetuity growth
    USD 202.81-12.9%
    Exit multiple
    USD 233.54+0.3%
    Market price
    USD 232.94

    Same forecast, different terminal treatment. Percentages vs price.

    Forecast Cashflows

    Reporting currency (USD). Outflows negative.

    0bn1bn2bnFY27FY28FY29FY30FY31FY32FY33FY34FY35FY36
    Nominal FCFFDiscounted to todayUSD
    LineFY27FY28FY29FY30FY31FY32FY33FY34FY35FY36CAGR
    RevenueUSD 5.8bnUSD 6.2bnUSD 6.6bnUSD 6.9bnUSD 7.2bnUSD 7.6bnUSD 7.9bnUSD 8.1bnUSD 8.4bnUSD 8.6bn+4.4%
    EBITUSD 1.8bnUSD 1.9bnUSD 2.0bnUSD 2.1bnUSD 2.2bnUSD 2.3bnUSD 2.4bnUSD 2.5bnUSD 2.6bnUSD 2.6bn+4.4%
    NOPATUSD 1.5bnUSD 1.6bnUSD 1.6bnUSD 1.7bnUSD 1.8bnUSD 1.9bnUSD 2.0bnUSD 2.0bnUSD 2.1bnUSD 2.1bn+4.4%
    Add depreciation & amortisationUSD 265.4mUSD 282.0mUSD 298.3mUSD 314.2mUSD 329.5mUSD 343.9mUSD 357.3mUSD 369.6mUSD 380.6mUSD 390.1m+4.4%
    Less capital expenditureUSD -156.3mUSD -182.7mUSD -210.9mUSD -240.7mUSD -271.9mUSD -304.1mUSD -337.1mUSD -370.5mUSD -404.0mUSD -437.2m+12.1%
    Capex, % of revenue2.7%2.9%3.2%3.5%3.8%4.0%4.3%4.6%4.8%5.1%-
    Less increase in working capitalUSD -55.4mUSD -111.9mUSD -109.9mUSD -106.9mUSD -102.6mUSD -97.1mUSD -90.5mUSD -82.7mUSD -73.9mUSD -64.0m+1.6%
    Free cashflow to firmUSD 1.5bnUSD 1.5bnUSD 1.6bnUSD 1.7bnUSD 1.8bnUSD 1.8bnUSD 1.9bnUSD 1.9bnUSD 2.0bnUSD 2.0bn+3.3%
    Discount factor0.96060.88630.81770.75450.69610.64230.59260.54680.50450.4655-
    Present valueUSD 1.5bnUSD 1.4bnUSD 1.3bnUSD 1.3bnUSD 1.2bnUSD 1.2bnUSD 1.1bnUSD 1.1bnUSD 1.0bnUSD 946.6m-
    Present Value Of The ForecastUSD 12.0bn

    Discount Rate

    Source shown per component. All overridable above.

    Risk-free rate4.89%US 10-year Treasury (^TNX), 2026-11-02
    Equity risk premium4.23%Damodaran, January 2026
    Beta0.841Reported 0.763, pulled toward 1.0 (Blume)
    Cost of equity8.45%Risk-free + beta x equity risk premium
    Cost of debt6.89%Assumed: risk-free + 200bp (interest expense not reported)
    Market capitalisationUSD 32.8bn97.5% of capital
    Total debtUSD 825.9m2.5% of capital, book value as a proxy
    Tax rate18.9%Effective, capped at statutory
    WACC8.38%E/V x Re + D/V x Rd x (1 - t)

    Terminal Value

    Perpetuity growth is intrinsic. The exit multiple defaults to the company's current EV/EBITDA, so it answers a different question - what the shares are worth if today's rating holds and EBITDA grows as forecast.

    Perpetuity growth at 2.50%

    Value per shareUSD 202.81

    58% of EV

    Forecast FCFF, final year
    USD 2.0bn
    Capex at depreciation, working capital in reinvestment
    USD 2.3bn
    Less reinvestment at g/ROIC (12.3% of NOPAT)
    USD -287.1m
    Capitalised
    USD 2.1bn
    ROIC (reported)
    20.4%
    Terminal value, undiscounted
    USD 35.8bn
    Terminal value, discounted
    USD 16.6bn
    Enterprise value
    USD 28.6bn
    Less net debt
    USD -643.3m
    Equity value
    USD 29.3bn

    Exit at 14.9x EBITDA

    Value per shareUSD 233.54

    64% of EV

    Terminal value, undiscounted
    USD 45.3bn
    Terminal value, discounted
    USD 21.1bn
    Enterprise value
    USD 33.0bn
    Less net debt
    USD -643.3m
    Equity value
    USD 33.7bn

    Spread between methods: 14%.

    Sensitivity

    Value per share (USD) by discount rate and long-run growth.

    Long-run growth
    Discount rate1.50%2.00%2.50%3.00%3.50%
    6.38%270.94285.34303.72327.81360.60
    7.38%225.11233.10242.92255.19270.86
    8.38%192.66197.27202.81209.55217.84
    9.38%168.50171.18174.38178.20182.81
    10.38%149.82151.35153.17155.34157.93

    Outlined: this model. Green text: above today's price of 232.94. Shading: distance from this model's own value.

    Priced In

    What each input would have to be to justify the current price, one at a time.

    InputActualModelImplied
    Revenue growth, a year10.2%4.3%6.1%
    EBIT margin33.8%30.8%35.8%
    Discount rate-8.4%7.6%
    Download as Excel

    Live formulas, not pasted numbers - edit a driver and the workbook reprices.

    Yahoo Finance and RBA data. General information, not advice. Methodology.