What Is RMD Fair Value?
ResMed (RMD) fair value estimate using multiple valuation models, updated daily.
As of October 14, 2026, ResMed (RMD) has a composite fair value estimate of $163.16 based on four valuation models: DCF (41% weight), Graham Number (29% weight), PEG (29% weight), and DDM (0% weight). The current market price is $235.29, suggesting the stock is overvalued by 30.7%.
Data as of October 14, 2026 (today)
Composite Fair Value
Overvalued3 of 4 models$163.16
vs. current price of $235.29(-30.7%)
How Is RMD Fair Value Calculated?
Four independent models estimate what RMD is worth. Each uses different inputs and assumptions. The composite blends them by weight.
RMD Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
41% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$195.75
-16.8%Overvalued
Inputs used
DDM (Dividend Discount Model)
0% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
N/A
This stock does not pay a dividend, so the DDM cannot be applied. The composite adjusts by redistributing this weight to the other models.
RMD Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
29% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$111.44
-52.6%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
29% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$120.89
-48.6%Overvalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $235.29 is 16.8% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $1.24B | $1.15B |
| Year 2 | $1.35B | $1.15B |
| Year 3 | $1.47B | $1.15B |
| Year 4 | $1.60B | $1.16B |
| Year 5 | $1.75B | $1.16B |
| Year 6 | $1.90B | $1.16B |
| Year 7 | $2.07B | $1.17B |
| Year 8 | $2.25B | $1.17B |
| Year 9 | $2.45B | $1.18B |
| Year 10 | $2.67B | $1.18B |
| Terminal Value | $45.53B | $20.12B |
What Are RMD's Key Financial Metrics?
Earnings & Growth
Current Price
$235.29
EPS (TTM)
$10.43
Forward P/E
17.8
Profit Margin
26.9%
Cash & Balance Sheet
Free Cash Flow
939.2M
EBITDA
2.1B
Book Value
$45.66
Total Debt
825.9M
What Do Analysts Say About RMD?
Low
$175.00
Average
$250.52
High
$320.00
Upside
+6.5%
RMD Fair Value FAQ
What is the fair value of RMD?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), RMD's estimated fair value is $163.16. The stock is currently trading at $235.29, which makes it overvalued by our analysis.
How is RMD's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is RMD overvalued or undervalued?
Based on our analysis, RMD is overvalued. The current price of $235.29 is 30.7% above our estimated fair value of $163.16.
What do Wall Street analysts say about RMD?
17 analysts cover ResMed with a consensus rating of "Buy." The average price target is $250.52, ranging from $175.00 to $320.00. This implies 6.5% upside from the current price.