RMD Valuation

Resmed Inc

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269.210

-1.78(-0.657%)1D

Overview
Forecast
Valuation
Earnings

RMD Relative Valuation

RMD's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, RMD is overvalued; if below, it's undervalued.

Historical Valuation

Resmed Inc (RMD) is now in the Fair zone, suggesting that its current forward PE ratio of 24.93 is considered Fairly compared with the five-year average of 30.61. The fair price of Resmed Inc (RMD) is between 250.71 to 404.11 according to relative valuation methord.

Relative Value

Fair Zone

250.71-404.11

Current Price：270.99

Fair

24.77

Trailing

Forward

18.32

EV/EBITDA

Resmed Inc. (RMD) has a current EV/EBITDA of 18.32. The 5-year average EV/EBITDA is 22.68. The thresholds are as follows: Strongly Undervalued below 12.60, Undervalued between 12.60 and 17.64, Fairly Valued between 27.72 and 17.64, Overvalued between 27.72 and 32.76, and Strongly Overvalued above 32.76. The current Forward EV/EBITDA of 18.32 falls within the Historic Trend Line -Fairly Valued range.

19.50

EV/EBIT

Resmed Inc. (RMD) has a current EV/EBIT of 19.50. The 5-year average EV/EBIT is 25.64. The thresholds are as follows: Strongly Undervalued below 12.14, Undervalued between 12.14 and 18.89, Fairly Valued between 32.39 and 18.89, Overvalued between 32.39 and 39.14, and Strongly Overvalued above 39.14. The current Forward EV/EBIT of 19.50 falls within the Historic Trend Line -Fairly Valued range.

7.07

Resmed Inc. (RMD) has a current PS of 7.07. The 5-year average PS is 7.55. The thresholds are as follows: Strongly Undervalued below 4.33, Undervalued between 4.33 and 5.94, Fairly Valued between 9.15 and 5.94, Overvalued between 9.15 and 10.76, and Strongly Overvalued above 10.76. The current Forward PS of 7.07 falls within the Historic Trend Line -Fairly Valued range.

23.47

P/OCF

Resmed Inc. (RMD) has a current P/OCF of 23.47. The 5-year average P/OCF is 31.33. The thresholds are as follows: Strongly Undervalued below 7.87, Undervalued between 7.87 and 19.60, Fairly Valued between 43.05 and 19.60, Overvalued between 43.05 and 54.78, and Strongly Overvalued above 54.78. The current Forward P/OCF of 23.47 falls within the Historic Trend Line -Fairly Valued range.

25.21

P/FCF

Resmed Inc. (RMD) has a current P/FCF of 25.21. The 5-year average P/FCF is 35.17. The thresholds are as follows: Strongly Undervalued below 9.14, Undervalued between 9.14 and 22.16, Fairly Valued between 48.19 and 22.16, Overvalued between 48.19 and 61.20, and Strongly Overvalued above 61.20. The current Forward P/FCF of 25.21 falls within the Historic Trend Line -Fairly Valued range.

Resmed Inc (RMD) has a current Price-to-Book (P/B) ratio of 6.65. Compared to its 3-year average P/B ratio of 6.84 , the current P/B ratio is approximately -2.78% higher. Relative to its 5-year average P/B ratio of 8.58, the current P/B ratio is about -22.56% higher. Resmed Inc (RMD) has a Forward Free Cash Flow (FCF) yield of approximately 4.13%. Compared to its 3-year average FCF yield of 2.95%, the current FCF yield is approximately 40.02% lower. Relative to its 5-year average FCF yield of 2.47% , the current FCF yield is about 67.47% lower.

6.60

P/B

Median3y

6.84

Median5y

8.58

4.19

FCF Yield

Median3y

2.95

Median5y

2.47

Competitors Valuation Multiple

The average P/S ratio for RMD's competitors is 5.12, providing a benchmark for relative valuation. Resmed Inc Corp (RMD) exhibits a P/S ratio of 7.07, which is 38.21% above the industry average. Given its robust revenue growth of 10.20%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Agilent Technologies Inc

GE Healthcare Technologies Inc

Edwards Lifesciences Corp

Performance Decomposition

Market capitalization of RMD increased by 11.25% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 23.89 to 28.17.

The secondary factor is the Revenue Growth, contributed 10.20%to the performance.

Overall, the performance of RMD in the past 1 year is driven by Margin Expansion. Which is more sustainable.

10.20%

1.22B → 1.35B

Revenue Growth

17.92%

23.89 → 28.17

Margin Expansion

-16.87%

34.05 → 28.31

P/E Change

11.25%