RMD
Resmed Inc
Price:  
256.59 
USD
Volume:  
535,219
United States | Health Care Equipment & Supplies

Resmed Fair Value

-14 %
Upside

What is the fair value of Resmed?

As of 2025-07-09, the Fair Value of Resmed Inc (RMD) is 220.59 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 256.59 USD, the upside of Resmed Inc is -14%.

Is Resmed a good investment?

With the market price of 256.59 USD and our fair value calculation, Resmed Inc (RMD) is not a good investment. Investing in Resmed stocks now will result in a potential loss of 14%.

256.59 USD
Stock Price
220.59 USD
Fair Price
FAIR VALUE CALCULATION

Resmed Fair Value

Peter Lynch's formula is:

Resmed Fair Value
= Earnings Growth Rate x TTM EPS
Resmed Fair Value
= 24.6 x 8.96
Resmed Fair Value
= 220.59

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
06-202006-202106-202206-202306-20245Y Avg
Net income621.7474.51779.44897.561,020.95759
YoY growth53.7%-23.7%64.3%15.2%13.7%24.6%

Resmed Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Dexcom Inc32,8431.434.12-59.3%
Steris plc22,8506.3156.4-32.8%
Insulet Corp20,8655.7142.89-51.8%
Zimmer Biomet Holdings Inc18,4934.6115.3823.4%
ABIOMED Inc17,1815.9147.9-61.2%
Varian Medical Systems Inc16,2624.220.89-88.2%
Hologic Inc14,4632.562.45-3.8%
Hill-Rom Holdings Inc10,2765.829.1-81.3%
Teleflex Inc5,2893.416.9-85.9%
Conmed Corp1,6233.895.9582.9%

Resmed Fair Value - Key Data

Market Cap (mil)37,624
P/E28.6x
Forward P/E30.9x
EPS8.96
Avg earnings growth rate24.6%
TTM earnings1,313

Resmed Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.