MeritValue

Electromed, Inc.

ELMDdata completeness 88%15 fiscal years on file
The thesis, from the filings

Electromed, Inc. earns about 15% on invested capital, comfortably above its ~9% cost of capital, with a roughly flat share count — a real edge showing up in the numbers. The estimate methods put fair value between $3.68 and $60.46 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$35.8M1$41.7M2$48.1M3$54.7M4$64M4
Net income$2.36M5$2.31M6$3.17M7$5.15M8$7.54M8
Operating cash flow$3.08M9−$686,00010$1.32M11$9.07M12$11.4M12
Capital expenditure$287,00013$1.43M14$1.65M15$287,00016$262,00016
Free cash flow (derived)$2.79M9−$2.11M10−$333,00011$8.78M12$11.1M12
Total debt$33,00017————
Cash & equivalents$11.9M18$8.15M19$7.37M20$16.1M21$15.3M21
Diluted shares8.9M8.8M8.7M8.9M8.9M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$48.47
your share of equity
Profit it earned you last year
$8.45
Free cash flow it threw off
$12.49
Debt you’d be carrying
—

10 shares is a claim on $48.47 of net worth that earned you $8.45 and generated $12.49 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
15% avg · 5y
FY21 12%FY22 9%FY23 11%FY24 19%FY25 27%

It earned about 15% on invested capital against a ~9% cost of capital — comfortably above the cost of funding, a moderate advantage.

seeing a moat in the numbers →
Management signal · capital allocation
+0% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback. Total debt has held roughly steady.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $3.68 and $60.46 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$60.46
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$8.78M
DCF · Growth Exit 5Y
$33.83
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$8.78M
Earnings Power Value
$3.68
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$3.17M
  • growthAssumed0.0%
Graham Number
$9.63
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $33.83
The three cases
Bear0.0%$15.79
Base20.0%$33.83
Bull20.0%$33.83

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-06-30 · accession 0000897101-22-000805 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-06-30 · accession 0000897101-23-000380 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-06-30 · accession 0000897101-24-000422 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-06-30 · accession 0001437749-25-027761 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-06-30 · accession 0000897101-22-000805 (NetIncomeLoss)
  6. 10-K · period ending 2022-06-30 · accession 0000897101-23-000380 (NetIncomeLoss)
  7. 10-K · period ending 2023-06-30 · accession 0000897101-24-000422 (NetIncomeLoss)
  8. 10-K · period ending 2024-06-30 · accession 0001437749-25-027761 (NetIncomeLoss)
  9. 10-K · period ending 2021-06-30 · accession 0000897101-22-000805 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-06-30 · accession 0000897101-23-000380 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-06-30 · accession 0000897101-24-000422 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-06-30 · accession 0001437749-25-027761 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-06-30 · accession 0000897101-22-000805 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-06-30 · accession 0000897101-23-000380 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-06-30 · accession 0000897101-24-000422 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-06-30 · accession 0001437749-25-027761 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-06-30 · accession 0000897101-21-000726 (LongTermDebtCurrent)
  18. 10-K · period ending 2021-06-30 · accession 0000897101-22-000805 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2022-06-30 · accession 0000897101-23-000380 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2023-06-30 · accession 0000897101-24-000422 (CashAndCashEquivalentsAtCarryingValue)
  21. 10-K · period ending 2024-06-30 · accession 0001437749-25-027761 (CashAndCashEquivalentsAtCarryingValue)