QualityDipStocks / Health Care · Medical instruments
ResMed RMD
On dip watch: 17% below its 52-week high.
A quality company trading below our fair value estimate.
- Fair value est.
- $266.21+16%
- Market Value
- forming
- Off 52-wk high
- −17%
- Risk vs market
- Lowbeta 0.47
5 bullish · 1 bearish See why
Key levels
Every level vs today’s $229.94
- 52-wk lowlowest close, 1 year$182.82−20.5%
- PriceFri Oct 30 close$229.94you are here
- Fair value est.base case$266.21+15.8%
- 52-wk highhighest close, 1 year$275.96+20.0%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 10.2% ±2 points. Bear = 10.5% and 8.2%; bull = 8.5% and 12.2% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price sits inside the range.
What the price implies To be worth today’s price, RMD’s free cash flow would need to grow about 8% a year for five years; our estimate uses 10%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much RMD moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves much less than the market, but its own price swings are 2.4× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.47
- Volatility
- 30% vs 13% SPY
- Correlation SPY
- 0.20
- Correlation QQQ
- 0.03
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
ValuationOur DCF fair value estimate is $266.21, 16% above the price.
ValuationP/E of 20.7× is 15% below its own average of 24.5× at the last 3 fiscal year-ends.
ValuationP/E of 20.7× vs a 29.2× median for the 86 Health Care companies we cover.
ProfitabilityOperating margin widened to 33.4% in FY2026 from 28.2% in FY2024 (SEC filings).
QualityPasses all four of our quality checks: cash generation, returns on capital, growth and balance sheet.
Top bearish points 1 of 5
ValuationPrice / book of 5.5×, above the 5.2× median for the 93 Health Care companies we cover.
Who’s talking about it
Notable investors, executives, analysts and public figures on ResMed in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Medical instruments
All fundamentals
P/E 20.7 · FCF yield 4.9% · ROE 26%
Valuation
- P/E
- 20.7×3-yr-end avg 24.5× · Health Care median 29.2×
- Price / FCF
- 20.5×
- FCF yield
- 4.9%
- EV / EBITDA
- 15.5×
- Price / sales
- 5.75×
- Price / book
- 5.54×
- Market cap
- $33.0Bprice × diluted shares
- Enterprise value
- $32.4B
Growth
- Revenue, 12 months
- $5.7B
- Sales growth, 12 months
- +9.0%vs the 12 months before
- Sales growth, 3 yrs
- +10.2%/yrfrom FY2023
- Diluted EPS, 12 months
- $10.98
- EPS growth, last FY
- +9.7%
- Net income, 12 months
- $1.6B
- Net income growth
- +11%12 months vs before
Profitability
- Gross margin
- 61.1%
- Operating margin
- 33.0%
- Net margin
- 27.8%
- FCF margin
- 28.1%
- Return on equity
- 26%
- Return on invested capital
- 28%
Balance sheet
- Cash & short-term inv.
- $1.0B
- Total debt
- $410M
- Net cash
- $601M
- Debt / equity
- 0.07×
- Interest coverage
- n/ainterest expense not tagged in SEC data
Cash flow & returns
- Free cash flow, 12 months
- $1.6B
- FCF growth, 12 months
- −9%
- Dividend yield
- 1.08%$357M paid
- Payout ratio
- 22%
- Buybacks, 12 months
- $1.5B4.5% of market cap
- Share count, 1 year
- −2.4%diluted shares vs a year ago
- Stock-based comp
- $113M
Trailing 12 months to Sep 30, 2026; balance sheet at Sep 30, 2026. From ResMed’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $266.21 · FCF value $263.20
Assumes 10.2% growth for 5 years (revenue grew 10.2% a year FY23–FY26), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $11.22 a share (trailing 12 months to Sep 30, 2026), from the 10-Q filed Oct 30, 2026. Net cash $601M, not added.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. We watch it daily for our three reversal signal rules while it sits in a dip.
Momentum & 52-week range
RSI 42 · 5 days −9.1%
The business
FCF $1.6B · Sales +9%
- Free cash flow, 12 months$1.6B
- Free-cash-flow yield4.6%
- Free-cash-flow margin29%
- Gross margin61%
- Operating margin34%
- Return on invested capital21%
- Return on equity24%
- Sales growth (latest quarter vs year-ago quarter)+9%
- Net debt / EBITDA−0.3×
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
Get a text when RMD fires a reversal signal
One text when a published rule fires on RMD or any of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.