Investor's Craft

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Investor's Craft

Intrinsic Value of ResMed Inc. (RMD)

Previous Close	$219.94
Intrinsic Value	$14.82
Upside potential	-93%

Previous Close

$219.94

Intrinsic Value

$14.82

Potential

-93%

VALUATION INPUT DATA

show cash flow forecast

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year	2025	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	2036	2037	2038	2039	2040	2041	2042	2043	2044	2045	2046	2047	2048	2049
INCOME STATEMENT
Revenue growth rate, %	10.9	10.6	10.3	10.1	9.8	9.6	9.3	9.1	8.9	8.7	8.5	8.4	8.2	8.0	7.9	7.7	7.6	7.5	7.3	7.2	7.1	7.0	6.9	6.8	6.7
Revenue, $	5196	5747	6340	6978	7662	8395	9179	10016	10909	11860	12872	13948	15090	16302	17586	18946	20385	21907	23516	25215	27009	28902	30899	33004	35223
Variable operating expenses, $m	3736	4132	4559	5017	5509	6036	6600	7202	7844	8528	9255	10029	10850	11721	12644	13622	14657	15751	16908	18130	19420	20781	22217	23730	25326
Fixed operating expenses, $m	-3	-3	-4	-4	-4	-5	-5	-6	-6	-7	-7	-8	-8	-9	-10	-11	-12	-13	-14	-15	-16	-17	-19	-21	-22
Total operating expenses, $m	3733	4129	4555	5013	5505	6031	6595	7196	7838	8521	9248	10021	10842	11712	12634	13611	14645	15738	16894	18115	19404	20764	22198	23709	25304
Operating income, $m	1463	1618	1785	1965	2157	2364	2584	2820	3072	3339	3624	3927	4249	4590	4951	5334	5740	6168	6622	7100	7606	8139	8702	9295	9920
EBITDA, $m	1680	1859	2051	2258	2480	2718	2973	3245	3535	3844	4173	4523	4894	5288	5706	6148	6616	7112	7635	8188	8772	9389	10039	10725	11447
Interest expense (income), $m	35	-30	-18	-6	7	21	36	52	69	88	107	128	150	173	198	225	252	282	313	346	381	418	457	498	541
Earnings before tax, $m	1428	1648	1804	1971	2151	2343	2549	2768	3002	3252	3517	3799	4099	4417	4753	5110	5487	5887	6308	6754	7225	7721	8245	8797	9379
Tax expense, $m	386	445	487	532	581	633	688	747	811	878	950	1026	1107	1192	1283	1380	1482	1589	1703	1824	1951	2085	2226	2375	2532
Net income, $m	1043	1203	1317	1439	1570	1710	1860	2021	2192	2374	2568	2773	2992	3224	3470	3730	4006	4297	4605	4930	5274	5636	6019	6422	6847
BALANCE SHEET
Cash and short-term investments, $m	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Total assets, $m	8885	9827	10842	11933	13103	14356	15696	17128	18655	20281	22012	23851	25804	27876	30072	32397	34858	37461	40212	43118	46186	49423	52838	56438	60232
Adjusted assets (=assets-cash), $m	8885	9827	10842	11933	13103	14356	15696	17128	18655	20281	22012	23851	25804	27876	30072	32397	34858	37461	40212	43118	46186	49423	52838	56438	60232
Average production assets, $m	3871	4282	4724	5199	5708	6255	6839	7462	8127	8836	9590	10391	11242	12145	13101	14115	15187	16321	17519	18785	20122	21532	23020	24588	26241
Working capital, $m	1606	1776	1959	2156	2368	2594	2836	3095	3371	3665	3978	4310	4663	5037	5434	5854	6299	6769	7266	7791	8346	8931	9548	10198	10884
Total debt, $m	-743	-460	-156	171	522	898	1300	1730	2188	2676	3195	3747	4333	4954	5613	6311	7049	7830	8655	9527	10447	11418	12443	13523	14661
Total liabilities, $m	2666	2948	3253	3580	3931	4307	4709	5138	5596	6084	6604	7155	7741	8363	9021	9719	10457	11238	12064	12935	13856	14827	15851	16931	18070
Total equity, $m	6220	6879	7589	8353	9172	10049	10988	11990	13058	14197	15408	16696	18063	19513	21050	22678	24401	26223	28148	30183	32330	34596	36986	39506	42162
Debt-to-equity ratio	0.141	-0.108	-0.061	-0.019	0.019	0.052	0.082	0.108	0.132	0.154	0.174	0.191	0.207	0.222	0.235	0.248	0.259	0.269	0.278	0.287	0.295	0.302	0.309	0.315	0.321
Adjusted equity ratio	0.700	0.700	0.700	0.700	0.700	0.700	0.700	0.700	0.700	0.700	0.700	0.700	0.700	0.700	0.700	0.700	0.700	0.700	0.700	0.700	0.700	0.700	0.700	0.700	0.700
CASH FLOW
Net income, $m	1043	1203	1317	1439	1570	1710	1860	2021	2192	2374	2568	2773	2992	3224	3470	3730	4006	4297	4605	4930	5274	5636	6019	6422	6847
Depreciation, amort., depletion, $m	217	240	266	293	323	355	388	425	463	505	549	596	645	698	754	814	877	943	1014	1088	1167	1250	1337	1430	1527
Funds from operations, $m	1259	1444	1583	1732	1893	2065	2249	2446	2655	2879	3116	3369	3638	3922	4224	4544	4882	5240	5619	6019	6441	6886	7356	7852	8374
Change in working capital, $m	158	170	183	197	211	226	242	259	276	294	313	332	353	374	397	420	445	470	497	525	554	585	617	651	686
Cash from operations, $m	1102	1273	1399	1535	1681	1838	2007	2187	2379	2585	2804	3037	3285	3548	3827	4124	4438	4770	5122	5494	5886	6301	6739	7201	7688
Maintenance CAPEX, $m	-217	-240	-266	-293	-323	-355	-388	-425	-463	-505	-549	-596	-645	-698	-754	-814	-877	-943	-1014	-1088	-1167	-1250	-1337	-1430	-1527
New CAPEX, $m	-380	-411	-442	-475	-510	-546	-584	-624	-665	-709	-754	-801	-851	-903	-957	-1013	-1072	-1134	-1199	-1266	-1337	-1410	-1488	-1568	-1653
Total CAPEX, $m	-597	-651	-708	-769	-833	-901	-972	-1048	-1129	-1213	-1303	-1397	-1496	-1601	-1711	-1827	-1949	-2077	-2212	-2354	-2503	-2660	-2825	-2998	-3180
Free cash flow, $m	504	622	691	767	849	938	1034	1138	1251	1371	1501	1640	1788	1947	2116	2297	2489	2693	2910	3139	3383	3641	3914	4203	4508
Issuance/(repurchase) of shares, $m	851	37	19	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Retained Cash Flow, $m	-218	-660	-710	-763	-819	-877	-938	-1002	-1069	-1138	-1211	-1287	-1367	-1450	-1537	-1628	-1723	-1822	-1926	-2034	-2148	-2266	-2390	-2520	-2656
Pot'l extraordinary dividend, $m	-1137
Cash available for distribution, $m	0	0	0	3	30	61	96	136	182	233	290	352	421	497	579	669	766	871	984	1105	1236	1375	1524	1683	1852
Discount rate, %	4.90	5.15	5.40	5.67	5.96	6.25	6.57	6.89	7.24	7.60	7.98	8.38	8.80	9.24	9.70	10.19	10.70	11.23	11.79	12.38	13.00	13.65	14.33	15.05	15.80
PV of cash for distribution, $m	0	0	0	3	22	42	61	80	97	112	124	134	141	144	144	142	136	128	118	107	95	82	70	58	47
Current shareholders' claim on cash, %	98	98	98	98	98	98	98	98	98	98	98	98	98	98	98	98	98	98	98	98	98	98	98	98	98

Investor's Craft

Investor's Craft

Intrinsic Value of ResMed Inc. (RMD)

VALUATION INPUT DATA

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

INCOME STATEMENT

BALANCE SHEET

CASH FLOW