ResMed Inc (RMD) fair value: what the stock is really worth
As of Nov 4, 2026: fair value (intrinsic value) of ResMed Inc stock $256, price $241, upside +6.5%, quality 80 out of 100. Rating: fairly valued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 3, 2026.
How to read this chart
60‑month range $130.73 – $290.65 · fair‑value band $181.29 – $333.11 · the $240.51 price screens below the $256.23 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 3, 2026.
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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.
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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.
Stock analysis
ResMed Inc (RMD) currently trades at $240.51, while our model-based Fair Value estimate is $256.23, so the stock looks roughly fairly valued today (gap 6.1%).
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Valuation
Bull case: the DCF Models group reads highest at a median of $293.42 per share, and 8 of the 26 models we run sit above the $240.51 price.
Bear case: the Dividend Discount group reads lowest at $41.72, and 18 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $181.29 (bear) to $333.11 (bull), the price of $240.51 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 80/100 (high quality), in the Healthcare sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
ResMed Inc reported revenue of $5.7B in FY2026 versus $3.6B in FY2022, a compound +12.1%/yr. Reported net income was $1.5B in FY2026, compounding +18.2%/yr from FY2022.
Key figures
Market cap $34.9B Large · P/E ratio 21.9 · P/S ratio 6.08 · EPS (TTM) $10.98 · Dividend yield 1.0% · Net margin 27.8% · Return on equity 26.4% · Return on assets (EBIT) 19.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 90 out of 100 (medium confidence).
What moves the price
The share trades about 12% below its 52-week high and 32% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Healthcare peers we cover trades at −46% fair-value upside, at 7%, RMD screens cheaper than that median.
Fair Value models
Bear$181.29Fair Value $256.23Bull$333.11
Price $240.51 · Upside +6.5%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 4 months old). Earnings retained since then ($2.99 per share) are deliberately not added.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 3 officers or directors sold shares worth $8.5M and none bought.
SaleMichael J RiderGlobal General Counsel4× since Dec 1, 2025: 550 shares, avg. $253.26$139,296Oct 23, 202610b5-1 plan
SaleMichael J. FarrellChairman and CEO, Director12× since Nov 7, 2025: 62,912 shares, avg. $232.12$14.6MOct 7, 202610b5-1 plan
SalePeter C FarrellDirector8× since Nov 12, 2025: 20,970 shares, avg. $238.70$5.0MSep 2, 202610b5-1 plan
SaleBrett SandercockChief Financial Officer5× since Dec 1, 2025: 5,000 shares, avg. $244.31$1.2MApr 1, 202610b5-1 plan
SaleJan De WitteDirector2× since Nov 11, 2025: 2,542 shares, avg. $254.09$645,897Nov 25, 202510b5-1 plan
Plus 11 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.96/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+9.9%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+10.2%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+12.1%
Start year 2021 (pandemic). Over 10 years: +11.9% a year
Revenue growth 33 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+22.1%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+17.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year+16.4%
Dividend (yield on the price)1.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.19.7% vs 15.6%, picking up
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.28% → 34%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes less growth than the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+7.4%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+5.0%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +4.9% a year for the price and +2.6% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (99 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: Solid margins and returns stand as the main strength while limited public signals on moat factors remain the central weakness.
Main risk: Lower-priced machines from competitors such as React Health or BMC Medical could capture share from ResMed's devices or pressure its pricing and margins in the sleep apnea market.
Bull case: ResMed could integrate its data platforms and AI tools more deeply with GLP-1 therapies and consumer sleep devices to capture additional patients and boost adherence across its ecosystem.
Bear case: If cheaper rivals gain traction and GLP-1 drugs meaningfully cut apnea cases, ResMed's core device volumes and recurring supply revenue could decline as patients shift to alternatives or need less therapy.
ResMed's sleep and breathing health revenue rose 8 percent in the latest quarter thanks to demand for devices and masks plus supply chain efficiencies. The residential care software business shrank after the MatrixCare divestiture even as the company returned over a billion dollars to shareholders. Will continued innovation in connected sleep solutions more than offset these portfolio shifts?
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Medical Instruments & Supplies · 181 stocks
Beats the industry median on 10/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score80 · Top 25%
Fair Value upside+6.5% · Above median
Profitability
Return on equity (12 months)26.4% · Top 25%
Return on assets17.0% · Top 25%
Net margin (12 months)27.8% · Top 25%
Operating margin (12 months)34.8% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)5.9% · Below median
Dividend yield (12 months)1.0% · Below median
Balance sheet
Debt / equity0.06× · Below median
Valuation Multiplesvs Medical Instruments & Supplies median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "ResMed Inc Fair Value". https://www.fairvalue-calculator.com/stock/RMD
Frequently asked questions
Is ResMed Inc (RMD) overvalued or undervalued?
As of Nov 3, 2026, our model estimates a fair value of $256.23 versus a price of $240.51, about +7% upside (fairly valued).
What is the fair value of RMD?
Our model-based fair value for ResMed Inc is $256.23 (as of Nov 3, 2026), built from audited fundamentals. The current price: $240.51.
What is the quality score of RMD?
ResMed Inc has a Quality Score of 80/100. 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 price target for ResMed Inc (RMD)?
Our model-based price target is the fair value of $256.23 (as of Nov 3, 2026) from 26 valuation models. Cautious scenario $181.29, optimistic scenario $333.11. It is a calculation from audited fundamentals, not an analyst target.
What is the ResMed Inc stock forecast for 2026?
Our models put fair value at $256.23, about +7% upside versus a price of $240.51 (fairly valued). Cautious scenario $181.29, optimistic scenario $333.11. The calculation is refreshed regularly with new filings.
What is the revenue of ResMed Inc (RMD)?
ResMed Inc reported trailing-twelve-month revenue of about $5.7B (latest available figure, as of Nov 3, 2026).
Does ResMed Inc pay a dividend?
ResMed Inc currently shows a dividend yield of 1.02% relative to its recent price (as of Nov 3, 2026).
What growth is priced into ResMed Inc (RMD)?
For today's price to be fair in a discounted-cash-flow model, ResMed Inc would have to grow free cash flow by +7.4 % per year for five years (discount rate 8.7 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +12.1 % per year. As of Nov 3, 2026.
What discount rate (WACC) does the fair value of RMD use?
Our models discount ResMed Inc at 8.7 %: a base by market capitalisation (large), damped by beta 0.76, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For ResMed Inc that is +7.4 % per year a year over ten years, using the same discount rate (8.7 %) and the same formula as our fair value.
How much growth has ResMed Inc (RMD) delivered so far?
Over the past 5 years revenue at ResMed Inc grew +12.1 % a year. The price currently implies +7.4 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of ResMed Inc (RMD) growing?
The median revenue growth in the sector is +6.2 % a year. That is the yardstick for the growth priced into ResMed Inc (+7.4 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of ResMed Inc (RMD)?
The free-cash-flow yield on the price is 4.73 %: that much free cash flow ResMed Inc produces per unit of market value. When it exceeds the discount rate of our models (8.7 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of ResMed Inc (RMD)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For ResMed Inc it is $256.23 per share (as of Nov 3, 2026), against a price of $240.51. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is ResMed Inc stock overvalued or undervalued in 2026?
As of Nov 3, 2026, RMD trades below its calculated fair value: price $240.51, fair value $256.23, a gap of about +7% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of RMD?
No. The price is what the market pays today ($240.51); the fair value is what the company's own numbers justify ($256.23). For ResMed Inc the two are $15.72 per share apart. That gap is exactly why we show both numbers side by side.
How much is ResMed Inc worth?
The market values ResMed Inc at about $34.9B (market capitalisation, as of Nov 3, 2026). Per share that is $240.51; our models calculate a fair value of $256.23 per share.
What do the bullish and bearish scenarios say about RMD?
Our models span a range for ResMed Inc: cautious scenario $181.29, base $256.23, optimistic $333.11 per share (as of Nov 3, 2026, price $240.51). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of RMD?
ResMed Inc trades at a price-to-earnings ratio of 21.9 (as of Nov 3, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $256.23 is built from several models across several years. Other multiples: PEG 1.2, P/B 5.3, P/S 6.1, EV/EBITDA 15.9.
What is the PEG ratio of RMD?
The PEG ratio of ResMed Inc is 1.23 (P/E divided by earnings growth, as of Nov 3, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of ResMed Inc (RMD)?
Balance-sheet figures for ResMed Inc (as of Nov 3, 2026): return on equity 26.4%, debt of 0.06 per unit of equity. They feed the Quality Score of 80/100, which measures business quality independently of the share price.
How far is RMD from its 52-week high?
ResMed Inc trades at $240.51, about 12% below its 52-week high of $273.72 and 32% above the low of $182.30 (as of Nov 4, 2026). Distance from the high says nothing about value: that is what the fair value of $256.23 is for.
Which stocks are comparable to ResMed Inc?
From the same area (Healthcare) we also value Intuitive Surgical, Inc, EssilorLuxottica Société anonyme, Medline Inc, Becton, Dickinson and Company, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is ResMed Inc stock attractive at the current price?
The data as of Nov 3, 2026: price $240.51, calculated fair value $256.23 (+7%), Quality Score 80/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of RMD calculated?
We run ResMed Inc through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $256.23, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.6% above its aggregate fair value. ResMed Inc currently trades 6% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of ResMed Inc (RMD)?
The closing price on Nov 4, 2026 was $240.51. Our model-based fair value is $256.23, about +7% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with ResMed Inc right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. A fairly wide model range ($181.29 to $333.11) leaves room in how you read the outcome.
Where does the earnings growth of ResMed Inc (RMD) come from?
Earnings per share at ResMed Inc grew +15.5 % a year from 2015 to 2026. Broken into its drivers: revenue per share +11.6 %, EBIT margin +3.8 %, tax rate +0.0 %, residual (interest, one-offs) −0.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of ResMed Inc
How large is the market capitalisation of ResMed Inc (RMD)?
The market capitalisation of ResMed Inc is $34.9B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of ResMed Inc (RMD)?
The price-to-sales ratio of ResMed Inc is 6.08 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of ResMed Inc (RMD)?
Earnings per share at ResMed Inc are $10.98 (price ÷ EPS = P/E 21.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of ResMed Inc (RMD)?
The dividend yield of ResMed Inc is 1.0% (payout 22.4%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of ResMed Inc (RMD)?
The net margin of ResMed Inc is 27.8% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of ResMed Inc (RMD)?
The return on equity (ROE) of ResMed Inc is 26.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of ResMed Inc (RMD)?
On an EBIT basis the return on assets of ResMed Inc is 19.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of ResMed Inc (RMD)?
The operating margin of ResMed Inc is 34.8% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at ResMed Inc (RMD)?
Revenue at ResMed Inc is growing +5.9% versus a year earlier (3y avg +10.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at ResMed Inc (RMD)?
Earnings per share at ResMed Inc are growing +23.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does ResMed Inc (RMD) hold?
ResMed Inc holds more cash than debt, $643M net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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Broad data
Nov 3, 2026