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Resmed Inc (RMD) Fair Value & Analysis

Healthcare · AU · Market cap A$40.2B (≈ $29.0B) · ISIN AU000000RMD6

What is Resmed Inc really worth?

RI Resmed Inc RMD · AU
PriceA$31.68
Fair ValueA$26.23
Upside−17.2%
Quality77/100

A strong business, but trading 21% above our fair value of A$26.23.

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Strengths

Healthy Growth (revenue 5y +11.7 %/yr)
Highly profitable · 27.4% net margin
Low debt · generates free cash flow
Ranks above peers (10/15)
Wide moat 88/100

Risks

!Weak on valuation: 10 out of 100
!Weak on dividend: 21 out of 100

For context

·1.06% dividend yield
Evidence: High Range A$19.73 – A$38.02

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)

A$44.81 A$20.92 Fair Value A$26.23 Jun 2021 Sep 2026

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.

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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.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF A$15.94 A$30.52 A$57.47 76
Growth DCF A$15.65 A$28.54 A$51.34 75
EPV A$9.63 A$11.17 A$12.52 74
All 24 models by family
DCF Models
FCF DCF A$15.94 A$30.52 A$57.47 76
Owner Earnings A$14.85 A$28.44 A$53.49 73
5Y Revenue Exit A$10.36 A$17.38 A$26.93 71
5Y EBITDA Exit A$14.21 A$25.65 A$40.38 73
5Y P/E Exit A$15.52 A$28.48 A$43.82 69
10Y Revenue Exit A$11.79 A$19.27 A$30.95 65
10Y EBITDA Exit A$14.66 A$25.49 A$42.69 66
10Y P/E Exit A$15.55 A$27.61 A$45.69 62
Earnings-Based
Graham-Dodd A$6.57 A$35.03 A$48.52 63
Lynch FV A$9.67 A$13.81 A$17.95 61
PEG = 1.0 A$9.67 A$13.81 A$17.95 57
EPV A$9.63 A$11.17 A$12.52 74
Multiples
P/E Multiple A$15.93 A$21.24 A$26.56 63
P/S Multiple A$9.31 A$12.42 A$15.52 58
P/B Multiple A$12.31 A$16.42 A$20.52 55
EV/EBIT A$15.19 A$20.13 A$25.07 66
EV/EBITDA A$14.29 A$18.92 A$23.56 67
EV/Revenue A$7.83 A$11.02 A$14.22 54
Asset-Based
NCAV (Graham) A$2.06 A$2.76 A$4.11 54
Growth DCF
Growth DCF A$15.65 A$28.54 A$51.34 75
Rev-Margin DCF A$10.36 A$17.25 A$26.57 71
Economic Profit
Residual Income A$6.41 A$8.61 A$43.76 64
ROIC Compounder A$11.11 A$14.95 A$19.91 71
Growth Earnings
Growth-Adj P/E A$14.61 A$20.87 A$27.13 67

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

P/E ratio 21.8
P/S ratio 5.95 P/E × margin
EPS (TTM) A$1.45 price ÷ EPS = P/E 21.8
Dividend yield 1.1% payout 23.2%
Net margin 27.2% FY2025
Return on equity 25.3% TTM
More key figures
Profitability
Return on assets (EBIT) 19.4% avg 5y
Operating margin 35.3% TTM
Growth
Revenue (TTM) A$5.5B TTM
Revenue growth (YoY) +10.8% 3y avg +12.9%
EPS growth (YoY) +10.5%
Balance sheet & cash flow
Free cash flow A$1.7B FY2025
Net cash A$358M FY2025

Figures from reported company fundamentals · as of Sep 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 77/100

Of which business quality 76 · Market factors (momentum, volatility) 42

Profitability 77
Margins and returns on capital today
Quality Growth 64
Are margins and returns improving?
Cashflow 87
Earnings quality: real cash, not paper profit
Fin. Strength 89
Balance sheet, leverage, solvency risk
Investment 38
Disciplined investing over empire-building
Low Volatility 73
Calm price path (market factor)
Momentum 36
Price trend over the last 3–12 months (market factor)
52W Momentum 20
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

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.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
A$5.1B
Latest YoY
+9.8%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.9%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.7%
Avg. revenue growth/yr (32Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+22.5%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+25.1% (24.0 + 1.1)
Revenue +12.6%/yr
FY21 $3.2B
FY22 $3.6B
FY23 $4.2B
FY24 $4.7B
FY25 $5.1B
Net income +31.1%/yr
FY21 $475M
FY22 $779M
FY23 $898M
FY24 $1.0B
FY25 $1.4B
Character of growth · EPS growth decomposed (2014-2025) +13.2 % p.a.
Revenue per share +11.6 %

of which total revenue +12.0 % · buybacks/dilution −0.3 %

EBIT margin +2.3 %
Tax rate +0.2 %
Residual (interest, one-offs) −1.0 %

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 →

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Cite: Fair Value Calculator (2026). "Resmed Inc Fair Value". https://www.fairvalue-calculator.com/stock/RMD

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.

Quality Score 77 · Top 25%
Fair Value upside −17% · Above median
Return on equity (TTM) 25% · Top 25%
Return on assets 15% · Top 25%
Net margin (TTM) 27% · Top 25%
Operating margin (TTM) 35% · Top 25%
Revenue growth 11% · Above median
Dividend yield (TTM) 1.1% · Below median
Debt / equity 0.11× · Higher than median

Valuation Multiples vs Medical Instruments & Supplies median · lower = cheaper

P/E (TTM) 21.8× · Cheaper than median
P/B 4.86× · Pricier than 75% of peers
P/S (TTM) 5.24× · Pricier than 75% of peers
P/FCF 17.6× · Pricier than median
EV/EBITDA 13.4× · Cheaper than median
PEG 1.16× · Cheaper than median

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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE10 · sector 0
FUTURE54 · sector 29
PAST100 · sector 26
HEALTH95 · sector 96
DIVIDEND21 · sector 30

Insider activity: 45/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

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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Frequently asked questions

Is Resmed Inc (RMD) overvalued or undervalued?
As of Sep 2, 2026, our model estimates a fair value of A$26.23 versus a price of A$31.68, about −17% upside (overvalued).
What is the fair value of RMD?
Our model-based fair value for Resmed Inc is A$26.23 (as of Sep 2, 2026), built from audited fundamentals. The current price: A$31.68.
What is the quality score of RMD?
Resmed Inc has a Quality Score of 77/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Resmed Inc (RMD)?
Resmed Inc reported trailing-twelve-month revenue of about A$5.5B (latest available figure, as of Sep 2, 2026).
What is the net profit margin of RMD?
The net profit margin of Resmed Inc is about 27.4%, meaning it keeps roughly 27.4% of revenue as net income. Based on the latest reported figures.
Does Resmed Inc pay a dividend?
Resmed Inc currently shows a dividend yield of about 1.06% relative to its recent price (as of Sep 2, 2026).
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