Discounted Cash Flow (DCF) Analysis Levered

ResMed Inc. (RMD)

$174.61

+0.89 (+0.51%)
All numbers are in Millions, Currency in USD
Stock DCF: 200.73 | 174.61 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 2,606.572,957.013,196.823,578.134,222.994,766.755,380.526,073.326,855.337,738.03
Revenue (%)
Operating Cash Flow 459.05802.26736.72351.15693.30896.321,011.731,142.011,289.051,455.03
Operating Cash Flow (%)
Capital Expenditure -77.34-105.94-116.83-156.04-134-169.11-190.88-215.46-243.20-274.52
Capital Expenditure (%)
Free Cash Flow 381.71696.32619.89195.11559.30727.22820.85926.551,045.851,180.51

Weighted Average Cost Of Capital

Share price $ 174.61
Beta 0.692
Diluted Shares Outstanding 147.55
Cost of Debt
Tax Rate 18.53
After-tax Cost of Debt 3.39%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.425
Total Debt 1,579.91
Total Equity 25,764.40
Total Capital 27,344.31
Debt Weighting 5.78
Equity Weighting 94.22
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 2,606.572,957.013,196.823,578.134,222.994,766.755,380.526,073.326,855.337,738.03
Operating Cash Flow 459.05802.26736.72351.15693.30896.321,011.731,142.011,289.051,455.03
Capital Expenditure -77.34-105.94-116.83-156.04-134-169.11-190.88-215.46-243.20-274.52
Free Cash Flow 381.71696.32619.89195.11559.30727.22820.85926.551,045.851,180.51
WACC
PV LFCF 590.47621.80654.78689.51726.09
SUM PV LFCF 3,771.67

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.19
Free cash flow (t + 1) 1,227.73
Terminal Value 38,486.96
Present Value of Terminal Value 27,198.33

Intrinsic Value

Enterprise Value 30,970
Net Debt 1,352.02
Equity Value 29,617.99
Shares Outstanding 147.55
Equity Value Per Share 200.73