Definitive Analysis
Definitive Analysis

Financial Statements

Analysis Mode

Ticker

Industry

Sector

ResMed Inc. (RMD)

Company Dividend Discount ModelIndustry: Medical - Instruments & SuppliesSector: Healthcare

Valuation Snapshot

Stable Growth$272.58 - $948.31$449.65
Multi-Stage$174.16 - $190.40$182.13
Blended Fair Value$315.89
Current Price$273.73
Upside15.40%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS6.67%7.05%2.111.921.751.671.541.531.441.361.271.14
YoY Growth--10.12%9.31%5.27%8.22%0.72%6.32%6.12%7.06%10.83%6.91%
Dividend Yield--0.77%0.79%1.19%0.76%0.58%0.89%1.06%1.18%1.64%1.76%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,437.90
(-) Cash Dividends Paid (M)320.74
(=) Cash Retained (M)1,117.17
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)287.58179.74107.84
Cash Retained (M)1,117.171,117.171,117.17
(-) Cash Required (M)-287.58-179.74-107.84
(=) Excess Retained (M)829.58937.431,009.32
(/) Shares Outstanding (M)147.22147.22147.22
(=) Excess Retained per Share5.636.376.86
LTM Dividend per Share2.182.182.18
(+) Excess Retained per Share5.636.376.86
(=) Adjusted Dividend7.818.559.03
WACC / Discount Rate8.52%8.52%8.52%
Growth Rate5.50%6.50%7.50%
Fair Value$272.58$449.65$948.31
Upside / Downside-0.42%64.27%246.44%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,437.901,531.371,630.911,736.921,849.821,970.052,029.15
Payout Ratio22.31%35.84%49.38%62.92%76.46%90.00%92.50%
Projected Dividends (M)320.74548.92805.401,092.911,414.391,773.051,876.97

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.52%8.52%8.52%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)501.05505.80510.55
Year 2 PV (M)671.07683.85696.75
Year 3 PV (M)831.22855.08879.39
Year 4 PV (M)981.921,019.681,058.52
Year 5 PV (M)1,123.581,177.851,234.19
PV of Terminal Value (M)21,531.6122,571.5923,651.38
Equity Value (M)25,640.4426,813.8528,030.79
Shares Outstanding (M)147.22147.22147.22
Fair Value$174.16$182.13$190.40
Upside / Downside-36.38%-33.46%-30.44%

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