TGM's two-stage DCF values ResMed Inc. (RMD) between $215.11 and $399.17 depending on assumptions, with a base case of $287.47. Growth is taken from the company's own record (5-year revenue CAGR (FCF growth too volatile to use)), fading to 2.5% long-run; the discount rate (8%) reflects its beta.
What would today's price require?
$221.89 is justified only if free cash flow grows about +5.7% a year (fading to 2.5% long-run) at a 8% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 9.1%/yr | 9.0% | $215.11 |
| Base case | 12.1%/yr | 8.0% | $287.47 |
| Optimistic | 15.1%/yr | 7.0% | $399.17 |
| Third-party model estimate (FMP) | independent reference · retrieved Sep 13, 2026 · assumptions not provided | $356.64 | |
The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.
Current Price
$221.89
Market-Implied Growth
+5.7%/yr
vs +21.6% 5Y actual
Model Scenario Range
$215.11 – $399.17
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for RMD (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $1.5B · 0.15B shares · net cash $809.9M
Estimated Fair Value
$287.47
+29.6% vs $221.89
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 12.1%/yr FCF growth and 10-year horizon fixed. Green = above today's $221.89; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.0% | $366 | $405 | $456 | $524 | $619 |
| 7.0% | $297 | $323 | $353 | $391 | $440 |
| 8.0% | $250 | $267 | $287 | $312 | $341 |
| 9.0% | $216 | $228 | $242 | $259 | $278 |
| 10.0% | $190 | $199 | $209 | $221 | $234 |
