4 models fit ResMed Inc. Common Stock and they disagree: 1 of 4 land within 15% of the average.
Two or more of our models back this value.
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Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionResMed Inc. Common Stock (RMD)
Fair value (4 models)
$205
ACCE price target
$240
Rating
Overvalued
Horizon
12 months
Fair value published on 20 Oct 2026, 16:04 CEST; previously $274 since 16 Oct 2026, 00:00 CEST.
ACCE price target published on 21 Sept 2026, 00:00 CEST.
Rating published on 20 Oct 2026, 16:04 CEST.
Price used: $253 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
23.1% above
-18.8% to fair value
ACCE score
69
out of 100
Analysts
45% buy
20 covering
P/E
24.3x
forward 18.5x
1-year return
-4.7%
Dividend yield
0.97%
ResMed Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
ResMed designs and sells CPAP and other sleep and respiratory devices for sleep apnea and COPD, along with the cloud-connected software and masks that go with them, and it earns a 61.6% gross margin on that mix. The moat is largely installed-base and data driven: patients who start on a ResMed device tend to stay in the ecosystem through mask replacements, and its cloud platform gives clinicians and payers adherence data that competitors have struggled to match. Revenue is growing 8.6%, with the near-term growth question centred on continued expansion of GLP-1 and sleep apnea diagnosis rates and on the company's ability to keep adherence high as diagnosed patients increase. At a 22.5x trailing and 17.7x forward P/E, with a 30.9% operating margin and 24.3% ROE, the stock is priced below its trailing multiple on earnings expectations, which makes it worth a closer look at the durability of the margin profile and the competitive threat from newer therapies.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Earnings growth deceleration
Earnings YoY +2.4% vs revenue +8.6% signals margin pressure or one-time headwinds. Operating margin 30.9% is strong but net margin 26.9% suggests SG&A or tax drag.
moderate
Valuation multiple compression risk
Forward P/E 17.4 is reasonable, but EV/EBITDA 15.3 and P/S 5.7 are elevated for 2.4% earnings growth.
moderate
Insider selling without buying
Last 10 disclosures show $5.07M in sales, zero buys. Insider ownership flat at +0.5% suggests no conviction at current levels.
moderate
High short interest
11.4% short interest is elevated for a $32.4B cap healthcare compounder. Indicates material skepticism on growth or valuation.
AI research notes
AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Consensus fair value sits 17.0% above the current share price, with 4 of 5 valuation models supporting the upside.
The company generates 26.9% net margins and 939M in annual free cash flow on a fortress balance sheet with 0.13 debt to equity.
Why it could disappoint
Current valuation implies only 6.3% annual cash flow growth over five years, below the company's 10.2% five-year average.
Year-over-year revenue growth decelerated to 8.6%, trailing the five-year average of 10.2%, signaling momentum loss.
At 22.1x trailing P/E and 2.9% free cash flow yield, the stock offers limited margin of safety for healthcare sector investors.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 29, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where RMD's valuation models land
Price
$252.86
Model fair value
$205
Model range
$105 to $291
Fair value $205
Price $253
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
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