RMD
ResMed Inc.
$246.20
Platform & Compounding FCF
65%
Two-stage FCF DCF
Moderate
·
Conviction
Overvalued
Trading 20.8% above fair value
You pay
$246.20
Bear
$164.59
Fair
$203.76
Bull
$239.71
Bear
$164.59
-33.1%
4% stage 1 growth, 11% discount
Fair
$203.76
-17.2%
7% stage 1 growth, 11% discount
Bull
$239.71
-2.6%
10% stage 1 growth, 11% discount
Adjust Assumptions
7.4%
11.0%
3.0%
Key Value Driver
FCF growth rate (7% base case)
Terminal Value % of EV
37%
Implied Market Multiple
21.6x
Market is pricing in (growth)
10.0%
vs 7.4% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (35 analysts)
$243.56
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 $203.76 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