RMD.AX · Intrinsic value
Is ResMed Inc. (RMD.AX) overvalued or undervalued?
ResMed Inc. (RMD.AX) trades at the delayed market price of A$34.07 a share. That price already implies revenue growth of 10.7% a year for 5 years. TickerWorth's fair value is A$26.36 a share (29% above fair value), as of Oct 19, 2026. It is a model estimate, and every input behind it is sourced below.
Model by Miraaj Patel · generated from market data · Updated Oct 19, 2026 · How these pages are made
Is RMD.AX overvalued?
- Fair value
- A$26.36
- Market price
- A$34.07
- Downside to fair value
- 22.6%
- Verdict
- 29% above fair value
Reverse DCF: Today's price implies revenue growth of 10.7% a year for 5 years; our model assumes 6.3% a year on average over the same horizon.
What is RMD.AX's TickerWorth Score?
A stronger business than most — but not cheap
Compared with Healthcare companies in Australia
Its strongest point: a profitable, high-quality business. Its weakest: trades above our estimate of what it's worth.
- Value · 59 of 100
Cheaper than 59% of Healthcare companies worldwide
- Price vs worth · 32 of 100
- Quality · 78 of 100
More profitable than 78% of Healthcare companies worldwide
- Financial health · 72 of 100
Financially stronger than 72% of Healthcare companies worldwide
- Growth · 36 of 100
Growing faster than 36% of Healthcare companies worldwide
- Momentum · 56 of 100
Outperformed 56% of Healthcare companies worldwide over the past year
Confidence: High confidence · Scored
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RMD.AX DCF valuation: what the price assumes
At a recent price of A$34.07, ResMed Inc. (RMD.AX) trades 29% above TickerWorth's blended fair value of A$26.36 per share — a discounted-cash-flow model cross-checked against peer multiples and asset value — meaning the market currently prices RMD.AX overvalued vs our estimate of what the business is intrinsically worth. Our fair value sits below the market, an implied -22.6% move to close the gap if the business performs in line with our assumptions. This is an educational model, not a price target or a recommendation — the value moves with the inputs, which you can test yourself using the WACC slider below.
Read the full reasoning
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values RMD.AX at about A$28.59 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.
The valuation discounts ResMed Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 8.6%, with a long-run terminal growth rate of 2.5%. About 76% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 10.7% annual revenue growth for RMD.AX. Our base case instead compounds to about 6.3% a year over the same forecast, so the market is pricing in materially faster growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, RMD.AX's modeled DCF value ranges from about A$21.02 to A$46.60 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what ResMed Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of RMD.AX's intrinsic value. Figures update as new filings and prices come in.
Every input behind RMD.AX's DCF
| Input | Value |
|---|---|
| Base-year revenueLive feed — totalRevenue (TTM) | A$8,095,170,000 |
| Base EBIT marginComputed — trailing operatingMargins, held roughly flat | 30.9% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 9% → 7% → 6% → 5% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.1% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 0.75 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesLive feed — sharesOutstanding | 1,406M |
| Market priceLast known price · as of 2026-10-19 21:01 UTC | A$34.07 |
Change RMD.AX's assumptions
The discount-rate dial and the editable model
ProChange growth, margin and WACC yourself — Pro (7-day free trial, card required).
What does ResMed Inc. do?
What does it do?
ResMed Inc. engages in the digital health and cloud-connected medical devices business in the United States and internationally. It operates in the Medical Instruments & Supplies industry (Healthcare sector), headquartered in United States. The company employs roughly 11,370 people.
How does it make money?
The business turns $5.7B in annual revenue into profit. Out of every $100 of sales, about $31 is left as operating profit (operating margin of 30.9%), after a 62% gross margin on the products/services it sells. After all costs, taxes and interest, 26.9% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks solid: carries modest debt (0.1× equity), comfortably covers its short-term bills (3.1× current ratio), and is currently profitable.
RMD.AX insider trading
Insider filings are available for US-listed companies only.
Common questions
What is RMD.AX's intrinsic value?
TickerWorth's blended fair value for ResMed Inc. (RMD.AX) is A$26.36 per share, versus a market price of A$34.07 (29% above fair value).
Is RMD.AX overvalued or undervalued?
On our blended fair value RMD.AX looks overvalued vs fair value at A$34.07. This is an educational estimate, not advice.
What discount rate is used for RMD.AX?
A WACC of 8.6% and a terminal growth rate of 2.5%.
Is ResMed stock undervalued?
TickerWorth's fair value for ResMed Inc. (RMD.AX) is A$26.36 against a market price of A$34.07. Our read: 29% above fair value. This is a model estimate, not investment advice.
ResMed (RMD.AX) DCF valuation and fair value
Our fair value for ResMed Inc. (RMD.AX) is A$26.36, built on a 8.6% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into ResMed stock?
Today's price implies revenue growth of 10.7% a year for 5 years; our model assumes 6.3% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of A$34.07. A model estimate, not investment advice.
ResMed (RMD.AX) insider trading
We have no recent SEC Form 4 insider filings on file for ResMed Inc. (RMD.AX). Form 4 covers US-listed companies only.
Stocks below our fair value instead
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.