MeritValue

RESMED INC

RMDdata completeness 100%18 fiscal years on file

Data notes: no data for concept 'investmentsAtFairValue'; no data for concept 'netInvestmentIncome'; no data for concept 'gainsOnRealEstateSales'; no data for concept 'realEstateImpairment'

The thesis, from the filings

RESMED INC earns about 21% on invested capital, far 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 $71.33 and $660.87 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 2022FY 2023FY 2024FY 2025FY 2026
Revenue$3.58B1$4.22B2$4.69B3$5.15B3$5.65B3
Net income$779.4M4$897.6M5$1.02B6$1.4B6$1.52B6
Operating cash flow$351.1M7$693.3M8$1.4B9$1.75B9$1.81B9
Capital expenditure$134.8M10$119.7M11$99.5M12$89.9M12$156.3M12
Free cash flow (derived)$216.3M7$573.6M8$1.3B9$1.66B9$1.65B9
Total debt$775.2M13$1.44B14$707.2M15$668.3M16$659.4M16
Cash & equivalents$273.7M17$227.9M18$238.4M19$1.21B20$1.47B20
Diluted shares147.0M147.5M147.6M147.3M146.1M

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
$450.89
your share of equity
Profit it earned you last year
$104.3
Free cash flow it threw off
$112.94
Debt you’d be carrying
$45.15

10 shares is a claim on $450.89 of net worth that earned you $104.3 and generated $112.94 of cash last year, against $45.15 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
21% avg · 5y
FY22 20%FY23 16%FY24 19%FY25 26%FY26 26%

It earned about 21% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
−1% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback. Total debt has fallen 15% — deleveraging.

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 v0.5.0

The 3 estimate methods that apply put fair value between $71.33 and $660.87 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
$660.87
assumptions (10)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$1.65B
DCF · Growth Exit 5Y
$365.1
assumptions (10)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$1.65B
Earnings Power Value
$71.33
assumptions (8)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$1.02B
  • growthAssumed0.0%
Graham Number
$103.51
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)9.08%
Terminal growth2.5%
At your growth, a share is worth $365.1
The three cases
Bear0.0%$163.39
Base20.0%$365.1
Bull20.0%$365.1

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 2022-06-30 · accession 0000943819-24-000013 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-06-30 · accession 0000943819-25-000035 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-06-30 · accession 0000943819-26-000047 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2022-06-30 · accession 0000943819-24-000013 (NetIncomeLoss)
  5. 10-K · period ending 2023-06-30 · accession 0000943819-25-000035 (NetIncomeLoss)
  6. 10-K · period ending 2024-06-30 · accession 0000943819-26-000047 (NetIncomeLoss)
  7. 10-K · period ending 2022-06-30 · accession 0000943819-24-000013 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-06-30 · accession 0000943819-25-000035 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-06-30 · accession 0000943819-26-000047 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-06-30 · accession 0000943819-24-000013 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-06-30 · accession 0000943819-25-000035 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2024-06-30 · accession 0000943819-26-000047 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-06-30 · accession 0000943819-23-000011 (LongTermDebt)
  14. 10-K · period ending 2023-06-30 · accession 0000943819-24-000013 (LongTermDebt)
  15. 10-K · period ending 2024-06-30 · accession 0000943819-25-000035 (LongTermDebt)
  16. 10-K · period ending 2025-06-30 · accession 0000943819-26-000047 (LongTermDebt)
  17. 10-K · period ending 2022-06-30 · accession 0000943819-23-000011 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2023-06-30 · accession 0000943819-24-000013 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2024-06-30 · accession 0000943819-25-000035 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2025-06-30 · accession 0000943819-26-000047 (CashAndCashEquivalentsAtCarryingValue)