ResMed Inc (RMD) Fair Value & Analysis
Healthcare · US · Market cap $29.6B
ResMed Inc
RMD · US
Fair value as of: Jul 13, 2026
From 26 valuation models · updated 25 days ago
Share price +1.6% over the past month.
A solid business, but screening 16% overvalued on our models.
What matters now
- Solid but not exceptional quality (67/100) and above fair value, neither a clear bargain nor a standout compounder.
- A fairly wide model range ($141.53 to $271.31) 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 Jul 13, 2026.
How to read this chart
60‑month range $131.11 – $291.49 · fair‑value band $141.53 – $271.31 · the $223.24 price screens above the $187.89 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 13, 2026.
Analysis
ResMed Inc (RMD) currently trades at $223.24, while our model-based Fair Value estimate is $187.89, implying the stock looks roughly 15.8% overvalued today. We read business quality at 67/100 (solid quality), in the Healthcare sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
Over the trailing twelve months, ResMed Inc generated revenue of $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 $358M. Fundamentals as of Jul 13, 2026
Our scenario range runs from $141.53 (bear case) to $271.31 (bull case); at $223.24, 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 23% 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 -43% fair-value upside, at -16%, RMD screens cheaper than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.
All 26 models by family
Widest divergence: DCF Models ($245.14) versus Asset-Based ($27.56). Highest evidence: Growth DCF (80).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 13, 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.
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.
RMD screens 16% overvalued. Compare with Intuitive Surgical, Inc →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Resmed's Q4 Earnings on Deck: What's in Store for the Stock?
- ResMed (RMD) Reports Next Week: Wall Street Expects Earnings Growth
- ResMed Earnings Growth Seen Strong as Ventilator Issue Clouds FY27, UBS Says
Peer Group
Medical Instruments & Supplies · 204 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
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: 42/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Medical Instruments & Supplies stocks, each showing price versus our Fair Value estimate (as of Jul 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Intuitive Surgical, Inc ISRG | $402.33 | $150.04 | -63% |
| EssilorLuxottica Société anonyme 1EL | €175.00 | €70.52 | -60% |
| Medline Inc MDLN | $41.11 | $30.15 | -27% |
| Becton, Dickinson and Company BDX | $150.65 | $103.53 | -31% |
| Alcon Inc ALC | $70.26 | $39.78 | -43% |
| West Pharmaceutical Services, Inc WST | $353.71 | $143.97 | -59% |
| Straumann Holding STMN | CHF 106.00 | CHF 47.31 | -55% |
| Sartorius Stedim Biotech S.A DIM | €188.50 | €51.16 | -73% |
| Coloplast A/S COLOB | kr 414.00 | kr 382.22 | -8% |
| Solventum Corporation SOLV | $81.31 | $117.08 | +44% |
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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