Discounted Cash Flow (DCF) Analysis Unlevered

ResMed Inc. (RMD)

$224.25

+5.95 (+2.73%)
All numbers are in Millions, Currency in USD
Stock DCF: 168.14 | 224.25 | overvalue

Operating Data

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 (%)
EBITDA 669.63705.80954.841,099.171,132.011,225.691,363.171,516.061,686.111,875.22
EBITDA (%)
EBIT 549.67555773.46907.65938.17999.241,111.311,235.961,374.591,528.76
EBIT (%)
Depreciation 119.96150.80181.37191.52193.84226.46251.86280.10311.52346.46
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 188.70147.13463.16295.28273.71368.16409.45455.37506.45563.25
Total Cash (%)
Account Receivables 483.68528.48474.64614.29575.95734.66817.06908.711,010.631,123.98
Account Receivables (%)
Inventories 268.70349.64416.91457.03743.91589.61655.74729.29811.09902.06
Inventories (%)
Accounts Payable 92.72115.72135.79138.01159.25173.20192.62214.23238.26264.98
Accounts Payable (%)
Capital Expenditure -71.46-77.34-105.94-116.83-156.04-140.22-155.95-173.44-192.90-214.53
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 224.25
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 5.957
Total Debt 917.55
Total Equity 32,974.39
Total Capital 33,891.94
Debt Weighting 2.71
Equity Weighting 97.29
Wacc

Build Up Free Cash

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
EBITDA 669.63705.80954.841,099.171,132.011,225.691,363.171,516.061,686.111,875.22
EBIT 549.67555773.46907.65938.17999.241,111.311,235.961,374.591,528.76
Tax Rate 39.46%22.02%15.20%46.30%18.85%28.37%28.37%28.37%28.37%28.37%
EBIAT 332.75432.79655.91487.39761.33715.79796.07885.36984.661,095.10
Depreciation 119.96150.80181.37191.52193.84226.46251.86280.10311.52346.46
Accounts Receivable --44.8053.84-139.6538.34-158.71-82.40-91.64-101.92-113.35
Inventories --80.94-67.27-40.12-286.88154.30-66.13-73.55-81.80-90.97
Accounts Payable -2320.062.2221.2413.9519.4321.6024.0326.72
Capital Expenditure -71.46-77.34-105.94-116.83-156.04-140.22-155.95-173.44-192.90-214.53
UFCF 381.26403.50737.98384.53571.84811.56762.87848.43943.591,049.43
WACC
PV UFCF 767.50682.29717.63754.79793.88
SUM PV UFCF 3,716.09

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.74
Free cash flow (t + 1) 1,070.42
Terminal Value 28,620.75
Present Value of Terminal Value 21,651.32

Intrinsic Value

Enterprise Value 25,367.42
Net Debt 643.84
Equity Value 24,723.58
Shares Outstanding 147.04
Equity Value Per Share 168.14