RMD resmed

RMD Resmed

08/7/26

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Over the last five years, ResMed Inc. (ASX: RMD) has demonstrated strong financial resilience, generating steady annual revenue increases and maintaining high profitability and a conservative debt profile. [1, 2, 3]

5-Year Financial Overview

• Revenue: ResMed has achieved an average annual revenue growth rate of over 11.6%, with top-line figures hitting around USD $5.54 billion in 2026. [1, 2]

• Profitability: Net margins remain a standout at approximately 27.4%, with the company consistently generating strong annual net profits (in excess of USD $1.5 billion). [1, 2, 3]
• Return on Equity (ROE): The company yields a solid ROE of 23.4%, consistently outperforming the broader medical equipment industry average. [1]

• Debt: The balance sheet is exceptionally clean. ResMed maintains a very low debt-to-equity ratio of around 10% to 13%, holding significant net cash. [1, 2]

Stock Performance & Valuation

• Market Position: ResMed operates as a global leader in sleep apnea and respiratory medical devices. [1, 2, 3, 4]
• Share Price: While the stock experienced periods of high volatility, the company has historically provided strong compound annual growth over the long term. [1, 2]
• Valuation Multiples: Due to recent price adjustments, RMD CDI shares have been trading at a price-to-sales multiple of roughly 4x, which is below its 5-year historical average of 8.70x. [1]

For the latest share price, live updates, and direct broker tools, you can check the ResMed Inc. (ASX: RMD) Market Page or view historical trading charts on Intelligent Investor. To dive deeper into specific yearly statements and comprehensive valuation tools, explore the financial breakdown on Simply Wall St.

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ResMed Inc. (ASX: RMD) is currently trading at a Trailing Price-to-Earnings (P/E) ratio of approximately 18.5x to 20.8x, depending on the exact daily price movement. This valuation sits roughly 45% to 50% below its 10-year historical median of 37.02. [1, 2, 3]

10-Year Historical P/E Ratio Breakdown

The table below reflects the approximate calendar year-end or fiscal year-end Trailing P/E ratios for ResMed over the past decade: [1, 2, 3]

Year [1, 2, 3, 4]	Approximate P/E Ratio	Valuation Context
2026 (Current)	18.5 – 20.8	Trading near a 10-year low due to strong earnings growth outpacing the stock price.
2025	23.7	Lowered valuation as weight-loss drug (GLP-1) market fears subsided and fundamentals stabilized.
2024	26.7	Market concerns over GLP-1 impact compressed multiples despite solid earnings.
2023	28.0	Post-pandemic market correction and cooling tech/growth sector valuations.
2022	36.8	Contraction from pandemic peaks as supply chain bottlenecks eased.
2021	42.5 (Peaked at 76.4)	Peak valuation driven by the competitor Philips recall and elevated pandemic demand.
2020	45.2	High growth expectations during the initial phases of the global pandemic.
2019	39.0	Strong, steady baseline growth in sleep apnea markets.
2018	35.5	Baseline trading valuation close to historical averages.
2017	38.2	Elevated due to one-off tax adjustments impacting reported EPS.
2016	29.8	Historic entry point during a period of steady global healthcare spending.

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Key Historical Takeaways

• The 10-Year Median: The long-term historical median sits firmly around 37.0. Historically, investors have been willing to pay a premium for RMD because of its defensive healthcare moat and consistent double-digit earnings growth. [1, 3]
• The Valuation Peak (2021): ResMed's P/E ratio spiked significantly to a quarterly high of 76.39 in late 2021. This was triggered by a massive product recall from its main competitor, Philips Respironics, which temporarily handed ResMed a near-monopoly on sleep apnea devices. []
• The GLP-1 Compression (2023–2024): The P/E multiple dropped heavily down toward the mid-20s due to market fears that GLP-1 weight-loss drugs (like Ozempic and Wegovy) would drastically reduce the patient pool for sleep apnea devices.
• Current Valuation (2026): According to analysis from financial platforms like GuruFocus, ResMed is now considered "Modestly Undervalued" relative to its history. The compression to ~19x is primarily because the company's actual earnings per share (EPS) have continued to grow aggressively, while the stock price valuation multiple has not returned to its historical mid-30s baseline. [1, 2, 3]

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