RMD
ResMed Inc.
$228.35
Platform & Compounding FCF
65%
Two-stage FCF DCF
Mild
·
Conviction
Overvalued
Trading 13.9% above fair value
You pay
$228.35
Bear
$161.91
Fair
$200.50
Bull
$235.94
Bear
$161.91
-29.1%
4% stage 1 growth, 11% discount
Fair
$200.50
-12.2%
7% stage 1 growth, 11% discount
Bull
$235.94
+3.3%
10% stage 1 growth, 11% discount
Adjust Assumptions
7.5%
11.0%
3.0%
Key Value Driver
FCF growth rate (7% base case)
Terminal Value % of EV
37%
Implied Market Multiple
20.4x
Market is pricing in (growth)
9.2%
vs 7.4% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (35 analysts)
$239.90
Divergence from AlphaVal
16%
Summary
Using a two-stage FCF DCF with 7% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $200.50 per share.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions