ResMed Inc.

DB:RME Stock Report

Market Cap: €34.4b

ResMed Valuation

Is RME undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RME when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RME (€232) is trading below our estimate of fair value (€354.02)

Significantly Below Fair Value: RME is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RME?

Key metric: As RME is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RME. This is calculated by dividing RME's market cap by their current earnings.
What is RME's PE Ratio?
PE Ratio32.1x
EarningsUS$1.11b
Market CapUS$35.77b

Price to Earnings Ratio vs Peers

How does RME's PE Ratio compare to its peers?

The above table shows the PE ratio for RME vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.8x
SHL Siemens Healthineers
28.6x14.2%€55.6b
AFX Carl Zeiss Meditec
24.4x16.3%€5.0b
EUZ Eckert & Ziegler
23.2x5.9%€831.3m
DRW3 Drägerwerk KGaA
7.2x2.0%€796.1m
RME ResMed
32.1x11.1%€35.8b

Price-To-Earnings vs Peers: RME is expensive based on its Price-To-Earnings Ratio (32.1x) compared to the peer average (20.8x).

Price to Earnings Ratio vs Industry

How does RME's PE Ratio compare vs other companies in the European Medical Equipment Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
RME 32.1xIndustry Avg. 29.5xNo. of Companies7PE01632486480+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RME is expensive based on its Price-To-Earnings Ratio (32.1x) compared to the European Medical Equipment industry average (29.5x).

Price to Earnings Ratio vs Fair Ratio

What is RME's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RME PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.1x
Fair PE Ratio30.6x

Price-To-Earnings vs Fair Ratio: RME is expensive based on its Price-To-Earnings Ratio (32.1x) compared to the estimated Fair Price-To-Earnings Ratio (30.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst RME forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€232.00
€241.03
+3.9%
10.1%€269.19€180.73n/a11
Nov ’25€222.50
€234.74
+5.5%
10.1%€262.17€176.02n/a11
Oct ’25€214.60
€217.25
+1.2%
10.9%€252.95€162.61n/a11
Sep ’25€220.20
€213.02
-3.3%
7.8%€241.53€182.98n/a10
Aug ’25€198.15
€206.62
+4.3%
9.5%€244.65€166.81n/a10
Jul ’25€176.30
€205.68
+16.7%
9.9%€246.34€167.96n/a11
Jun ’25€193.60
€201.96
+4.3%
10.3%€246.10€167.80n/a12
May ’25€199.85
€201.03
+0.6%
10.3%€246.79€168.26n/a13
Apr ’25€182.15
€191.48
+5.1%
11.3%€240.20€152.68n/a13
Mar ’25€158.35
€190.81
+20.5%
11.1%€240.17€152.67n/a13
Feb ’25€175.75
€185.67
+5.6%
12.0%€237.95€151.26n/a12
Jan ’25€157.05
€168.48
+7.3%
15.5%€234.50€143.61n/a11
Dec ’24€145.05
€167.28
+15.3%
16.1%€235.14€144.00n/a11
Nov ’24€135.90
€179.16
+31.8%
17.0%€244.17€149.53€222.5011
Oct ’24€140.60
€208.82
+48.5%
16.9%€260.12€160.80€214.6011
Sep ’24€148.35
€227.05
+53.0%
8.5%€252.07€189.74€220.2012
Aug ’24€205.10
€238.21
+16.1%
7.1%€264.05€201.22€198.1512
Jul ’24€201.10
€242.88
+20.8%
6.7%€271.12€206.61€176.3012
Jun ’24€203.20
€242.80
+19.5%
6.1%€270.34€213.47€193.6012
May ’24€210.60
€234.30
+11.3%
5.1%€254.10€207.82€199.8511
Apr ’24€198.40
€236.01
+19.0%
6.6%€257.68€201.55€182.159
Mar ’24€197.92
€236.01
+19.2%
6.6%€257.68€201.55€158.359
Feb ’24€207.65
€236.01
+13.7%
6.6%€257.68€201.55€175.759
Jan ’24€194.24
€252.57
+30.0%
7.5%€281.01€211.76€157.059
Dec ’23€217.95
€252.57
+15.9%
7.5%€281.01€211.76€145.059
Nov ’23€222.45
€252.57
+13.5%
7.5%€281.01€211.76€135.909

Analyst Forecast: Target price is less than 20% higher than the current share price.

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