RMD
ResMed Inc.
$208.05
Platform & Compounding FCF
65%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 32.1% below fair value
You pay
$208.05
Bear
$203.52
Fair
$306.20
Bull
$417.19
Bear
$203.52
-2.2%
8% stage 1 growth, 11% discount
Fair
$306.20
+47.2%
14% stage 1 growth, 11% discount
Bull
$417.19
+100.5%
18% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (14% base case)
Terminal Value % of EV
42%
Implied Market Multiple
18.7x
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $281.29 from 35 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $306.20 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