RMD · Intrinsic value
Is ResMed Inc. (RMD) overvalued or undervalued?
ResMed Inc. (RMD) trades at the delayed market price of $238.97 a share. That price already implies revenue growth of 10.6% a year for 5 years. TickerWorth's fair value is $194.01 a share (priced within our range of $94.16 – $249.23). We do not call it over- or undervalued from inside our range.
Model by Miraaj Patel · generated from SEC filings and market data · Updated Oct 19, 2026 · How these pages are made
Is RMD fairly valued?
- Fair value
- $194.01
- Market price
- $238.97
- Downside to fair value
- 18.8%
- Verdict
- Priced within our range of $94.16 – $249.23
Reverse DCF: Today's price implies revenue growth of 10.6% a year for 5 years; our model assumes 7.1% a year on average over the same horizon.
What is RMD's TickerWorth Score?
Middle of the pack — real strengths and real weaknesses
Compared with Healthcare companies in US
Its strongest point: a profitable, high-quality business. Its weakest: trades above our estimate of what it's worth.
- Value · 51 of 100
Cheaper than 51% of Healthcare companies in US
- Price vs worth · 35 of 100
- Quality · 78 of 100
More profitable than 78% of Healthcare companies in US
- Financial health · 69 of 100
Financially stronger than 69% of Healthcare companies in US
- Growth · 37 of 100
Growing faster than 37% of Healthcare companies in US
- Momentum · 58 of 100
Outperformed 58% of Healthcare companies in US over the past year
Confidence: High confidence · Scored
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RMD DCF valuation, input by input
TickerWorth's fair value for ResMed Inc. (RMD) is $194.01 a share, against the delayed market price of $238.97 (priced within our range of $94.16 – $249.23). We do not call it over- or undervalued from inside our range. It is a model estimate, and every input behind it is sourced below. This is an educational model, not a price target or a recommendation.
Read the full reasoning
The valuation discounts ResMed Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 8.8%, with a long-run terminal growth rate of 2.5%. About 75% 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 10.6% annual revenue growth for RMD. Our base case instead compounds to about 7.1% 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's modeled DCF value ranges from about $145.54 to $310.80 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's intrinsic value. Figures update as new filings and prices come in.
Every input behind RMD's DCF
| Input | Value |
|---|---|
| Base-year revenueResMed Inc. FY2026 10-K (accession 0000943819-26-000047): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2026 full year. | $5,653,440,000 |
| Base EBIT marginResMed Inc. FY2026 10-K (accession 0000943819-26-000047): us-gaap:OperatingIncomeLoss 1,886,715,000 / revenue 5,653,443,000 = 33.37%, FY2026. | 33.4% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 10% → 9% → 7% → 6% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.2% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 0.77 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesResMed Inc. FY2026 10-K (accession 0000943819-26-000047): WeightedAverageNumberOfDilutedSharesOutstanding = 146,054,000 shares, FY2026. | 146M |
| Market priceBackup price feed · as of 2026-10-19 13:19 UTC | $238.97 |
Change RMD's assumptions
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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.
Who at RMD filed insider trades?
| Date | Insider | Relationship | What happened | Value | Filing |
|---|---|---|---|---|---|
| Farrell Michael J. | Director, Chairman and CEO | Option exercise | $730,382.94 | Form 4 for Farrell Michael J. (opens sec.gov in a new tab) | |
| Farrell Michael J. | Director, Chairman and CEO | Open-market sale | $1,129,637.49 | Form 4 for Farrell Michael J. (opens sec.gov in a new tab) | |
| Farrell Michael J. | Director, Chairman and CEO | Option exercise | $730,382.94 | Form 4 for Farrell Michael J. (opens sec.gov in a new tab) | |
| Farrell Michael J. | Director, Chairman and CEO | Open-market sale | $1,110,190.55 | Form 4 for Farrell Michael J. (opens sec.gov in a new tab) | |
| FARRELL PETER C | Director | Open-market sale | $227,688.10 | Form 4 for FARRELL PETER C (opens sec.gov in a new tab) | |
| Leong Justin | Chief Product Officer | Grant / award | — | Form 4 for Leong Justin (opens sec.gov in a new tab) |
A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans
Common questions
What is RMD's intrinsic value?
TickerWorth's blended fair value for ResMed Inc. (RMD) is $194.01 per share, versus a market price of $238.97 (priced within our range of $94.16 – $249.23).
Is RMD overvalued or undervalued?
Priced within our range of $94.16 – $249.23 at $238.97. We don't call RMD overvalued or undervalued from a range. This is an educational estimate, not advice.
What discount rate is used for RMD?
A WACC of 8.8% and a terminal growth rate of 2.5%.
Is ResMed stock undervalued?
TickerWorth's fair value for ResMed Inc. (RMD) is $194.01 against a market price of $238.97. Our read: Priced within our range of $94.16 – $249.23. This is a model estimate, not investment advice.
ResMed (RMD) DCF valuation and fair value
Our fair value for ResMed Inc. (RMD) is $194.01, built on a 8.8% 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 10.6% a year for 5 years; our model assumes 7.1% 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 $238.97. A model estimate, not investment advice.
ResMed (RMD) insider trading
The most recent insider filing (SEC Form 4) for ResMed Inc. (RMD): Farrell Michael J., Director, Chairman and CEO, option exercise on 2026-10-07. The latest filings are listed on this page. A disclosure, not a signal to trade.
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.