ResMed Stock Valuation

RMD Stock  USD 224.59  7.58  3.26%   
What is the value of ResMed today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as ResMed, is its stock price multiplied by the total number of shares outstanding, calculating ResMed's enterprise value requires a different approach. It uses ResMed's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
ResMed Enterprise Value is projected to increase significantly based on the last few years of reporting. The past year's Enterprise Value was at 7.74 Billion.
ResMed Inc holds a recent Real Value of $247.58 per share. The prevailing price of the company is $224.59. At this time, the company appears to be undervalued. Our model determines the value of ResMed Inc from analyzing the company fundamentals such as Operating Margin of 0.28 %, return on equity of 0.24 %, and Shares Outstanding of 146.48 M as well as examining its technical indicators and Probability Of Bankruptcy. In general, we support purchasing undervalued entities and exiting overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
  
ResMed Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as ResMed's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

ResMed Most Recent Valuation Data

Dividend Share
1.7
Beta
0.4545
Fiscal Year End
June
Property Plant And Equipment Net
630.5 M
Enterprise Value
33.1 B
Undervalued
Today 224.59
Please note that ResMed's price fluctuation is very steady at this time. Calculation of the real value of ResMed Inc is based on 3 months time horizon. Increasing ResMed's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for ResMed Inc is useful when determining the fair value of the ResMed stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of ResMed. Since ResMed is currently traded on the exchange, buyers and sellers on that exchange determine the market value of ResMed Stock. However, ResMed's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
202.17
Downside
247.58
Real Value
249.43
Upside
Estimating the potential upside or downside of ResMed Inc helps investors to forecast how ResMed stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of ResMed more accurately as focusing exclusively on ResMed's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
210.76219.57228.47
Details
Hype
Prediction
LowEstimated ValueHigh
223.03224.88226.73
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
1.101.111.12
Details
11 Analysts
Consensus
LowTarget PriceHigh
227.00272.38312.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use ResMed's intrinsic value based on its ongoing forecasts of ResMed's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against ResMed's closest peers. When choosing an evaluation method for ResMed Inc, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

ResMed Investments

5.02 Million

ResMed Valuation Drivers Correlation

Many accounts on the financial statements of ResMed Inc are highly interrelated and sometimes correlated. Consequently, when conducting ResMed's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of ResMed
Click cells to compare fundamentals

ResMed Valuation Trend

Knowing ResMed's actual value is paramount for traders to make sound investment determinations. ResMed's real value is not only important for the investor to make better decisions but also for a more accurate overall view of ResMed's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both ResMed's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

ResMed Market Cap

ResMed Inc is rated third in market capitalization category among related companies. Market capitalization of Health Care industry is at this time estimated at about 233.1 Billion. ResMed retains roughly 33.86 Billion in market capitalization claiming about 15% of equities under Health Care industry.
Capitalization  Workforce  Valuation  Total debt  Revenue

ResMed Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining ResMed's current stock value. Our valuation model uses many indicators to compare ResMed value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across ResMed competition to find correlations between indicators driving ResMed's intrinsic value. More Info.
ResMed Inc is rated below average in beta category among related companies. It is rated third in annual yield category among related companies fabricating about  0.02  of Annual Yield per Beta. The ratio of Beta to Annual Yield for ResMed Inc is roughly  60.60 . Comparative valuation analysis is a catch-all model that can be used if you cannot value ResMed by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for ResMed's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the ResMed's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates ResMed's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in ResMed and how it compares across the competition.

About ResMed Valuation

The stock valuation mechanism determines the current worth of ResMed Inc on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of ResMed Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of ResMed Inc based exclusively on its fundamental and basic technical indicators. By analyzing ResMed's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of ResMed's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of ResMed. We calculate exposure to ResMed's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to ResMed's related companies.
Fiscal Year End
June
Industry
Medical Instruments & Supplies
Concentration
Health Care Equipment
Full Time Employees
8.2 K
Service Category
Health Care Equipment & Supplies
Last ReportedProjected for 2023
Gross Profit959.8 MB
Profit Margin 25.05  23.88 
ResMed's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether ResMed's value is low or high relative to the company's performance and growth projections. Determining the market value of ResMed can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of ResMed represents a small ownership stake in the entity. As a stockholder of ResMed, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

ResMed Dividends Analysis For Valuation

As of January 27, 2023, Payment of Dividends and Other Cash Distributions is expected to decline to about (208.6 M). In addition to that, Dividend Yield is expected to decline to 0.0168. The current year Accumulated Retained Earnings Deficit is expected to grow to about 2.1 B. The current year Earning Before Interest and Taxes EBIT is expected to grow to about 437.7 M
Last ReportedProjected for 2023
Payment of Dividends and Other Cash Distributions-193.3 M-208.6 M
Dividend Yield 0.0171  0.0168 
Dividends per Basic Common Share 1.08  0.99 
There are various types of dividends ResMed can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of ResMed shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from ResMed Inc directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When ResMed pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of ResMed by the value of the dividends paid out.

ResMed Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as ResMed does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quarterly Earnings Growth Y O Y0.029

ResMed Current Valuation Indicators

Valuation refers to the process of determining the present value of ResMed Inc and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value ResMed we look at many different elements of the entity such as ResMed's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. ResMed's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final ResMed's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as ResMed, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use ResMed's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes ResMed's worth.
Additionally, take a look at Your Equity Center. You can also try Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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When running ResMed Inc price analysis, check to measure ResMed's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy ResMed is operating at the current time. Most of ResMed's value examination focuses on studying past and present price action to predict the probability of ResMed's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move ResMed's price. Additionally, you may evaluate how the addition of ResMed to your portfolios can decrease your overall portfolio volatility.
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Is ResMed's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of ResMed. If investors know ResMed will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about ResMed listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.029
Market Capitalization
33.9 B
Quarterly Revenue Growth
0.051
Return On Assets
0.128
Return On Equity
0.2435
The market value of ResMed Inc is measured differently than its book value, which is the value of ResMed that is recorded on the company's balance sheet. Investors also form their own opinion of ResMed's value that differs from its market value or its book value, called intrinsic value, which is ResMed's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ResMed's market value can be influenced by many factors that don't directly affect ResMed's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ResMed's value and its price as these two are different measures arrived at by different means. Investors typically determine ResMed value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ResMed's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.