Company valuation ยท Healthcare
RMD: Hold + Reduce with a $166.26 price target
ResMed Inc. Quarterly sales are growing, but the profit margin narrowed.
- Model target ยท USD
- $166.26 For 2027-09-14
- Model rating
- Hold + Reduce Reviewed 2026-09-17
- Reference weekly close
- $218.27 2026-09-11 ยท USD

Investment view
Quarterly sales are growing, but the profit margin narrowed.
Target and reference price
Target for 2027-09-14: $166.26 USD, -23.8% versus the $218.27 weekly close on 2026-09-11. Price return only; dividends, fees and tax excluded.
Price and earnings
Over 1 year (2025-09-12 to 2026-09-11), price changed -19.2% and trailing EPS changed +17.0%. A wider gap changes the earnings multiple; it does not establish fair value.
Supporting evidence
Revenue changed +8.6% from the same quarter last year, through 2026-06-30. The previous quarterโs year-on-year change was +10.8%.
Net debt / EBITDA: -0.3ร for RMD, against 1.6ร across 11 comparable peers.
Risks to the case
The latest quarterly operating margin was 30.7%, -3.1 percentage points from a year earlier. The full report separates sales growth from margin changes.
The estimate for the period ending 2027-06-30 changed -0.1% over 30 days. Coverage is 20 analysts.
What to monitor
Compare the next results with the trailing margin of 33.4% and the annual-history median of 28.2%. A historical median is context, not a forecast.
The latest quarterly margin changed -3.1 percentage points from a year earlier. Check sales volumes, pricing and unusual gains in the next filing.
Recheck the valuation gap alongside profitability and growth after new results. A discount alone does not establish value.
Valuation assumptions
Starting annual sales growth: 9.94%.
Long-term operating margin: 30.46%.
About this assessment
Review recorded on 2026-09-17. This is a dated summary of an automated company valuation. The full report includes the financial evidence, alternative scenarios and review history. Consult the latest report before using an earlier target. Automated model research, not personal investment advice. Targets depend on assumptions; returns are not guaranteed.