Resmed Inc (RMD) Fair Value & Analysis
Healthcare · AU · Market cap A$40.2B (≈ $29.0B) · ISIN AU000000RMD6
What is Resmed Inc really worth?
A strong business, but trading 21% above our fair value of A$26.23.
Strengths
Risks
For context
Fair value as of: Sep 2, 2026
From 24 valuation models · updated 2 days ago
Fair value updated Sep 2, 2026, revised from A$26.05 to A$26.23 (+0.7%) since Aug 27, 2026. Share price +4.7% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- A high-quality business (quality 77/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
- A fairly wide model range (A$19.73 to A$38.02) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 2, 2026.
How to read this chart
60‑month range A$20.92 – A$44.81 · fair‑value band A$19.73 – A$38.02 · the A$31.68 price screens above the A$26.23 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 2, 2026.
Analysis
Resmed Inc (RMD) currently trades at A$31.68, while our model-based Fair Value estimate is A$26.23, implying the stock looks roughly 20.8% overvalued today. The Quality Score stands at 77/100 (high quality), in the Healthcare sector. Bull case: the DCF Models group reads highest at a median of A$25.65 per share, and 1 of the 24 models we run sit above the A$31.68 price. Bear case: the Asset-Based group reads lowest at A$2.76, and 23 of the 24 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, Resmed Inc generated revenue of A$5.5B at a net margin of 27.4%. Revenue grew 10.8% year over year. It earns a return on equity of 25.3%. The balance sheet holds a net cash position of A$358M. Fundamentals as of Sep 2, 2026
Our scenario range runs from A$19.73 (bear case) to A$38.02 (bull case); at A$31.68, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 29% below its 52-week high and 24% above its 52-week low, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at −46% fair-value upside, at −17%, RMD screens cheaper than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 12 months have passed since. In that time the company retained roughly A$1.16 per share, which is 4.4 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 24 models by family
Widest divergence: DCF Models (A$25.65) versus Asset-Based (A$2.76). Highest evidence: FCF DCF (76).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Sep 2, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 76 · Market factors (momentum, volatility) 42
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications to diagnose, treat, and manage respiratory disorders in the United States and internationally. The company operates in two segments, Sleep and Breathing Health, and Residential Care Software.
Full company description
ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications to diagnose, treat, and manage respiratory disorders in the United States and internationally. The company operates in two segments, Sleep and Breathing Health, and Residential Care Software. It offers sleep recorders for the diagnosis and titration of sleep apnea in sleep clinics, hospitals, and at home, including ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry; and EasyCare Tx, a sleep lab solution. The company also provides AirView, a cloud-based system that enables remote monitoring and changing of patients' device settings; myAir, a personalized therapy management application for patients with sleep apnea that provides support, education, and troubleshooting tools for increased patient engagement and improved compliance; and connectivity module which provides a cellular connection between compatible ventilation devices and AirView system. In addition, the company offers Brightree solutions which are solutions and services for organizations in home medical equipment and pharmacy, orthotic and prosthetic, and home infusion; HEALTHCAREfirst solutions that offers electronic health record, software, billing and coding services, and advanced analytics that enables home health and hospice agencies to optimize clinical, financial and administrative processes; MatrixCare EHR software as a service solutions used by skilled nursing and senior living providers, life plan communities, and home health and hospice sectors; and MEDIFOX DAN software solutions that is used by residential care providers, such as home health and nursing home providers. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Resmed Inc reported revenue of $5.1B in FY2025 versus $3.2B in FY2021, a compound +12.6%/yr. Reported net income was $1.4B in FY2025, compounding +31.1%/yr from FY2021.
of which total revenue +12.0 % · buybacks/dilution −0.3 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
RMD screens 21% overvalued. Compare with Intuitive Surgical, Inc →
Peer Group
Medical Instruments & Supplies · 194 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Medical Instruments & Supplies median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
Insider activity: 45/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Medical Instruments & Supplies stocks, each showing price versus our Fair Value estimate (as of Sep 2, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Intuitive Surgical, Inc ISRG | $367.07 | $150.04 | −59% |
| EssilorLuxottica Société anonyme EL | €160.35 | €94.93 | −41% |
| Medline Inc MDLN | $36.59 | $30.15 | −18% |
| Becton, Dickinson and Company BDX | $187.12 | $100.46 | −46% |
| Alcon Inc ALC | $72.23 | $39.78 | −45% |
| West Pharmaceutical Services, Inc WST | $337.47 | $141.58 | −58% |
| Sartorius Stedim Biotech S.A DIM | €197.70 | €48.88 | −75% |
| Straumann Holding STMN | CHF 97.38 | CHF 47.31 | −51% |
| Sartorius Aktiengesellschaft SRT3 | €253.50 | €63.30 | −75% |
| Coloplast A/S COLOB | kr 435.80 | kr 382.22 | −12% |
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