---
title: ResMed (RMD) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/rmd
ticker: RMD
as_of: 2026-10-17
sector: Healthcare
industry: Medical - Instruments & Supplies
---
# ResMed (RMD)

ResMed (RMD) closed at $238.97 on Oct 16, 2026, overvalued by 11% vs its model value of $216.26 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $238.97 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $216.26 |
| Price vs model | overvalued by 11% vs model |
| Range of that model | $146.81 – $454.70 |
| Market value | $33.6B |
| P/E (fiscal 2026) | 22.9 |
| Net margin (fiscal 2026) | 26.9% |
| Free cash flow (fiscal 2026) | $1.6B |
| Dividend yield (trailing twelve months) | 1.03% |
| Beta | 0.75 |
| Cost of capital (WACC) | 8.45% |
| Business classification | Mature & Stable (Low/slowing growth (~10% recent), High profitability (27% net margin), Pays dividends, Highly cyclical earnings) |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 1.03% |
| Dividends per share, last 12 months | $2.46 |
| Dividends / free cash flow (fiscal 2026) | 21.2% |
| Raised | 13+ years in a row |
| Growth over 5 years | 9.1% a year |
| Latest payment | $0.66, ex-date Aug 20, 2026, paid Sep 24, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Aug 18, 2021 | $1.59 |
| To Aug 17, 2022 | $1.70 |
| To Aug 16, 2023 | $1.80 |
| To Aug 15, 2024 | $1.97 |
| To Aug 14, 2025 | $2.19 |
| Trailing twelve months (to Aug 20, 2026) | $2.46 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $216.26 | $146.81 | $454.70 |
| DCF · Perpetuity growth · 10y | cross check | $230.94 | $159.99 | $470.59 |
| DCF · EBITDA exit · 5y | cross check | $279.95 | $213.42 | $358.01 |
| DCF · EBITDA exit · 10y | cross check | $284.40 | $211.05 | $381.27 |
| P/E · peers | cross check | $212.45 | $179.82 | $246.47 |
| P/E · own history | cross check | $384.26 | $304.80 | $466.44 |
| PEG | sanity check | $141.13 | $141.13 | $141.13 |
| EV/EBITDA · peers | cross check | $231.18 | $165.70 | $310.31 |
| EV/Revenue · peers | cross check | $123.77 | $75.79 | $168.46 |
| Earnings power value | cross check | $99.34 | $85.20 | $119.58 |
| Dividend discount | cross check | $57.64 | $38.69 | $99.19 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 5 open-market sales ($5.3M); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Oct 7, 2026 | Farrell Michael J. | Chairman and CEO | Option/RSU exercise (10b5-1 plan) | 4,991 | $730,382.9 |
| Oct 7, 2026 | Farrell Michael J. | Chairman and CEO | Open-market sell (10b5-1 plan) | 4,991 | $1.1M |
| Oct 7, 2026 | Farrell Michael J. | Chairman and CEO | Option/RSU exercise (10b5-1 plan) | 4,991 | $0 |
| Aug 14, 2026 | Leong Justin | Chief Product Officer | Grant / award | 6,461 | $0 |
| Aug 14, 2026 | Rider Michael J | Global General Counsel | Grant / award | 3,230 | $0 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Oct 1, 2026 | ARS | Annual report to shareholders | https://www.sec.gov/Archives/edgar/data/943819/000094381926000084/rmd-20260630xasfiledaugust.pdf |
| Oct 1, 2026 | DEFA14A | Additional proxy materials | https://www.sec.gov/Archives/edgar/data/943819/000094381926000082/resmedinc_vxnaxp56791xp5.htm |
| Oct 1, 2026 | DEF 14A | Proxy statement | https://www.sec.gov/Archives/edgar/data/943819/000094381926000080/rmd-20261001.htm |
| Sep 1, 2026 | 8-K | 8.01 Other Events | https://www.sec.gov/Archives/edgar/data/943819/000119312526378487/d530283d8k.htm |
| Aug 17, 2026 | 8-K | 4.01 Change in Certifying Accountant; 5.02 Departure/Election of Directors or Officers; 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/943819/000119312526354154/d292919d8k.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Francois Rochon | 2026-06-30 | 387,665 | $75.5M |
| Bridgewater | 2026-06-30 | 67,381 | $13.1M |

2 tracked managers in all.

## About

ResMed Inc. is a leading global medical technology enterprise engaged in the creation, production, distribution, and marketing of healthcare devices and connected digital solutions. The company operates through two primary segments: Sleep and Respiratory Care, and Software as a Service. Its extensive product range addresses a variety of respiratory disorders, encompassing advanced medical and consumer technologies, ventilation devices, diagnostic equipment, mask systems for both clinical and personal use, headgear, and related accessories, alongside dental devices. ResMed also provides sophisticated cloud-based informatics to enhance patient management and operational efficiency. Notable software offerings in its respiratory portfolio include AirView, for remote device monitoring and setting adjustments; myAir, a personalized application designed to support sleep apnea patients with educ…

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Source: https://sweetvaluelab.com/stocks/rmd (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.