ResMed IncValuation models (DCF and P/E) indicate the stock is undervalued, trading below intrinsic value and industry averages.

ResMed shares have fallen 23.2% over the past year, yet both Discounted Cash Flow and earnings-based valuation models indicate the stock is trading at a discount. A DCF analysis using trailing free cash flow of about $1.75 billion yields an intrinsic value estimate of roughly $275 per share, approximately 29.2% above the current market price. On an earnings basis, ResMed trades at a price-to-earnings ratio of about 18.5 times, below the medical equipment industry average of 25.6 times and a tailored fair P/E benchmark of 23.2 times. The valuation debate centers on whether the discount represents a buying opportunity or a rational reflection of risks from GLP-1 therapies and competitive pressures on traditional sleep apnea treatment demand.
ResMed IncValuation models (DCF and P/E) indicate the stock is undervalued, trading below intrinsic value and industry averages.