ResMed Inc. (RMD) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+55.5%

$359.95

vs $231.47 price

Levered DCF

$534.64

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

11.73

Safe zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	18.67×	27.02×	26.94×	35.7×	39.26×	75.39×	44.55×	43.73×
P/B	4.28×	6.34×	5.65×	7.76×	9.11×	12.41×	11.1×	8.55×
P/S	4.99×	7.36×	5.87×	7.59×	8.56×	11.21×	9.37×	6.79×
EV / EBITDA	12.8×	19.6×	18.34×	24.58×	26.57×	32.9×	28.82×	26.69×
Gross margin	61.1%	59.4%	56.7%	55.8%	56.6%	57.5%	58.1%	59.0%
Operating margin	33.8%	32.7%	28.2%	26.8%	28.0%	28.3%	27.4%	22.2%
Net margin	26.9%	27.2%	21.8%	21.3%	21.8%	14.8%	21.0%	15.5%
Current ratio	3.1×	3.44×	2.59×	3.12×	2.8×	1.73×	2.53×	2.06×
Debt / equity	0.13×	0.14×	0.18×	0.38×	0.27×	0.28×	0.52×	0.61×
Interest coverage	0×	133.66×	28.88×	23.89×	44.83×	37.67×	20.05×	16.02×
Dividend yield	1.2%	0.8%	1.0%	0.8%	0.8%	0.6%	0.8%	1.2%
Payout ratio	23.0%	22.2%	27.7%	28.8%	31.5%	47.8%	36.2%	52.3%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	23.1%	23.5%	21.0%	21.7%	23.2%	16.4%	24.9%	19.5%
Return on invested capital	19.3%	19.6%	17.8%	15.3%	18.3%	12.6%	17.1%	12.7%
Return on assets	17.0%	17.1%	14.9%	13.3%	15.3%	10.0%	13.6%	9.8%
Free cash flow yield	5.8%	4.4%	4.7%	1.7%	0.6%	1.7%	2.5%	2.2%
Earnings yield	5.4%	3.7%	3.7%	2.8%	2.5%	1.3%	2.2%	2.3%
Enterprise value	$27.6B	$37.5B	$28.1B	$33.4B	$31.3B	$36.3B	$28.5B	$18.8B
Net debt / EBITDA	-0.3×	-0.19×	0.41×	0.99×	0.55×	0.45×	0.84×	1.59×
Cash conversion cycle (days)	172	184	170	227	196	157	141	154