MeritValue

RESMED INC

RMDdata completeness 100%17 fiscal years on file
The thesis, from the filings

RESMED INC earns about 19% 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 $63.13 and $530.62 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$3.2B1$3.58B2$4.22B3$4.69B3$5.15B3
Net income$474.5M4$779.4M5$897.6M6$1.02B6$1.4B6
Operating cash flow$736.7M7$351.1M8$693.3M9$1.4B9$1.75B9
Capital expenditure$102.7M10$134.8M11$119.7M12$99.5M12$89.9M12
Free cash flow (derived)$634M7$216.3M8$573.6M9$1.3B9$1.66B9
Total debt$655.4M13$775.2M14$1.44B15$707.2M16$668.3M16
Cash & equivalents$295.3M17$273.7M18$227.9M19$238.4M20$1.21B20
Diluted shares146.5M147.0M147.5M147.6M147.3M

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
$405.04
your share of equity
Profit it earned you last year
$95.07
Free cash flow it threw off
$112.78
Debt you’d be carrying
$45.36

10 shares is a claim on $405.04 of net worth that earned you $95.07 and generated $112.78 of cash last year, against $45.36 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
19% avg · 5y
FY21 15%FY22 20%FY23 16%FY24 19%FY25 26%

It earned about 19% 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 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 $63.13 and $530.62 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
$530.62
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$1.3B
DCF · Growth Exit 5Y
$291.74
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$1.3B
Earnings Power Value
$63.13
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$897.6M
  • growthAssumed0.0%
Graham Number
$93.1
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 $291.74
The three cases
Bear0.0%$129.91
Base20.0%$291.74
Bull20.0%$291.74

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 0000943819-23-000011 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-06-30 · accession 0000943819-24-000013 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-06-30 · accession 0000943819-25-000035 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-06-30 · accession 0000943819-23-000011 (NetIncomeLoss)
  5. 10-K · period ending 2022-06-30 · accession 0000943819-24-000013 (NetIncomeLoss)
  6. 10-K · period ending 2023-06-30 · accession 0000943819-25-000035 (NetIncomeLoss)
  7. 10-K · period ending 2021-06-30 · accession 0000943819-23-000011 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-06-30 · accession 0000943819-24-000013 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-06-30 · accession 0000943819-25-000035 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-06-30 · accession 0000943819-23-000011 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-06-30 · accession 0000943819-24-000013 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-06-30 · accession 0000943819-25-000035 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-06-30 · accession 0000943819-22-000010 (LongTermDebt)
  14. 10-K · period ending 2022-06-30 · accession 0000943819-23-000011 (LongTermDebt)
  15. 10-K · period ending 2023-06-30 · accession 0000943819-24-000013 (LongTermDebt)
  16. 10-K · period ending 2024-06-30 · accession 0000943819-25-000035 (LongTermDebt)
  17. 10-K · period ending 2021-06-30 · accession 0000943819-22-000010 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-06-30 · accession 0000943819-23-000011 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-06-30 · accession 0000943819-24-000013 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-06-30 · accession 0000943819-25-000035 (CashAndCashEquivalentsAtCarryingValue)