What is ResMed Inc. (RMD) DCF Fair Value and Intrinsic Value in 2026?

ResMed Inc. (RMD) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is ResMed Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

ResMed Inc. operates in the Healthcare sector (Medical Devices) with an economic moat rating of NARROW. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is ResMed Inc.'s financial health rating and Piotroski F-Score?

ResMed Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor ResMed Inc. (RMD) for quarterly SEC filing thesis breaks?

LocalAlpha audits ResMed Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksRMD

RMD

ResMed Inc.Healthcare / Medical Instruments & SuppliesINTACT

ResMed Inc. engages in the digital health and cloud-connected medical devices business in the United States and internationally. It operates in two segments, Sleep and Breathing Health, and Residential Care Software. The company offers sleep recorders for the diagnosis and titration of sleep apnea in sleep clinics, hospitals, and at home, including ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry; and EasyCare Tx, a sleep lab solution. It also provides AirView, a cloud-based system that enables remote monitoring and changing of patients' device settings; myAir, a personalized therapy management application for patients with sleep apnea that provides support, education, and troubleshooting tools for increased patient engagement and improved compliance; and connectivity module which provides a cellular connection between compatible ventilation devices and AirView system. In addition, the company offers Brightree solutions which are solutions and services for organizations in home medical equipment and pharmacy, orthotic and prosthetic, and home infusion; HEALTHCAREfirst solutions that offers electronic health record, software, billing and coding services, and advanced analytics that enables home health and hospice agencies to optimize clinical, financial and administrative processes; MatrixCare EHR software as a service solutions used by skilled nursing and senior living providers, life plan communities, and home health and hospice sectors; and MEDIFOX DAN software solutions that is used by residential care providers, such as home health and nursing home providers. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.

Share Price

$217.37

52W: $180.27 - $284.87

DCF Fair Value

$192.51

-12.9% Premium

Thesis Hub

P/E (TTM)

20.8x

ROIC

23.2%

Operating Margin

30.9%

FCF Yield

Debt / Equity

0.13x

Piotroski Score

8/9

Altman Z-Score

3.25

Market Cap

$31.4B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($192.51)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$192.51

MOS Buy Target (-25%)

$144.38

Valuation Overlays: DCF Fair Value ($192.51) 25% MOS Buy Target ($144.38) Revised Graham ($303.08) Graham Number ($103.51)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$217.37

DCF Fair Value

$193.49

-12.3% Premium

Starting Free Cash Flow ($M)$939M

$100M$939M (Reported)$50,000M

Stage 1 Growth (Years 1-5)15.5%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)-$700M (Net Cash)

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$11.1B

PV of Terminal Value

$16.0B

Implied Enterprise Value

$27.2B

Implied Equity Value

$27.9B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$1,085	$1,253	$1,447	$1,671	$1,930	$2,017	$2,108	$2,203	$2,302	$2,405
Present Value (PV)	$995	$1,054	$1,117	$1,184	$1,254	$1,203	$1,153	$1,105	$1,060	$1,016

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-110% Premium

$103.51

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $10.43BVPS: $45.66

Revised Graham Formula+28.3% MoS

$303.08

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings2.8% Yield

$6.19 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $0.9BYield: 2.8%

Reverse DCF: Market Growth Expectation

FAIR BARRIER

12.4% CAGR (Next 10 Yrs)

At the current price of $217.37, the market is assuming the business will compound Free Cash Flow at 12.4% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

ℹ Fair expectations: Requires steady execution.

Autonomous Thesis Underwriting

Surveil RMD with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for ResMed Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 30.9% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Track RMD & Set Alerts Browse S&P 500 Coverage

Frequently Asked Questions: ResMed Inc. (RMD) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for ResMed Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, ResMed Inc. has an estimated DCF intrinsic fair value of $192.51 per share compared to its current market price of $217.37. This represents an estimated 12.9% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $103.51.