ResMed Inc. develops, manufactures, distributes, and markets medical equipment for the diagnosis, treatment, and management of respiratory disorders with a focus on sleep-disordered breathing. The company was founded in 1989 and is based in San Diego, California.
RMD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for RMD, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Resmed Inc ranked in the 26th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 68.5%. The most interesting components of our discounted cash flow analysis for Resmed Inc ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 23.04; that's higher than 86.26% of US stocks in the Healthcare sector that have positive free cash flow.
The business' balance sheet reveals debt to be 4% of the company's capital (with equity being the remaining amount). Approximately just 14.38% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
RMD's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 45.55% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as RMD, try ABT, AZN, ABC, CPIX, and HSIC.
Mechanical ventilation, forced air, or intermittent forced ventilation are the technical terms for mechanical ventilation in which mechanical means are employed to help replace or aid breathing in specific situations. As a medical terminology, mechanical ventilation is used to refer
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ResMed Inc. (NYSE:RMD) CFO Brett Sandercock sold 2,500 shares of the firm’s stock in a transaction dated Monday, January 11th. The shares were sold at an average price of $218.70, for a total value of $546,750.00. Following the sale, the chief financial officer now owns 100,600 shares of the company’s stock, valued at $22,001,220. The […]