Discounted Cash Flow (DCF) Analysis Levered

ResMed Inc. (RMD)

$218.3

-0.16 (-0.07%)
All numbers are in Millions, Currency in USD
Stock DCF: 150.07 | 218.3 | overvalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 2,340.202,606.572,957.013,196.823,578.133,979.464,425.804,922.205,474.286,088.29
Revenue (%)
Operating Cash Flow 505.03459.05802.26736.72351.15789.38877.91976.381,085.891,207.69
Operating Cash Flow (%)
Capital Expenditure -71.46-77.34-105.94-116.83-156.04-140.22-155.95-173.44-192.90-214.53
Capital Expenditure (%)
Free Cash Flow 433.57381.71696.32619.89195.11649.15721.96802.94893993.16

Weighted Average Cost Of Capital

Share price $ 218.3
Beta 0.497
Diluted Shares Outstanding 147.04
Cost of Debt
Tax Rate 18.85
After-tax Cost of Debt -1.97%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.152
Total Debt 917.55
Total Equity 32,099.49
Total Capital 33,017.04
Debt Weighting 2.78
Equity Weighting 97.22
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 2,340.202,606.572,957.013,196.823,578.133,979.464,425.804,922.205,474.286,088.29
Operating Cash Flow 505.03459.05802.26736.72351.15789.38877.91976.381,085.891,207.69
Capital Expenditure -71.46-77.34-105.94-116.83-156.04-140.22-155.95-173.44-192.90-214.53
Free Cash Flow 433.57381.71696.32619.89195.11649.15721.96802.94893993.16
WACC
PV LFCF 612.81643.39675.50709.21744.60
SUM PV LFCF 3,385.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.93
Free cash flow (t + 1) 1,013.02
Terminal Value 25,776.57
Present Value of Terminal Value 19,325.48

Intrinsic Value

Enterprise Value 22,710.99
Net Debt 643.84
Equity Value 22,067.15
Shares Outstanding 147.04
Equity Value Per Share 150.07