Latest Ratios: P/E Ratio N/A · EV/EBITDA 16.8x · ROE 24.3%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $32.2B | — | $38.0B | $28.2B | $32.2B | $30.8B | $36.1B | $28.0B | $17.6B | $14.9B | $11.1B |
| Enterprise Value | $31.6B | — | $37.7B | $28.9B | $33.6B | $31.5B | $36.6B | $28.8B | $18.8B | $15.0B | $11.3B |
| P/E Ratio → | — | — | 27.13 | 27.66 | 35.88 | 39.55 | 76.09 | 44.96 | 43.58 | 47.30 | 32.45 |
| P/S Ratio | 5.70 | — | 7.39 | 6.03 | 7.63 | 8.61 | 11.29 | 9.46 | 6.76 | 6.37 | 5.37 |
| P/B Ratio | — | — | 6.37 | 5.81 | 7.80 | 9.17 | 12.51 | 11.20 | 8.51 | 7.24 | 5.66 |
| P/FCF | 19.55 | — | 22.88 | 21.96 | 57.61 | 157.99 | 58.24 | 40.16 | 46.19 | 34.40 | 32.38 |
| P/OCF | 17.86 | — | 21.70 | 20.16 | 46.47 | 87.78 | 49.01 | 34.86 | 38.41 | 29.53 | 26.79 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | — | 7.32 | 6.16 | 7.95 | 8.79 | 11.45 | 9.74 | 7.20 | 6.41 | 5.49 |
| EV / EBITDA | 16.75 | — | 19.60 | 18.80 | 25.27 | 26.35 | 33.42 | 29.06 | 25.69 | 22.68 | 21.10 |
| EV / EBIT | 16.75 | — | 22.45 | 22.04 | 28.88 | 32.02 | 40.12 | 35.60 | 33.79 | 26.79 | 24.85 |
| EV / FCF | — | — | 22.66 | 22.45 | 60.02 | 161.28 | 59.05 | 41.36 | 49.13 | 34.61 | 33.13 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 61.1% | 61.1% | 59.4% | 56.7% | 55.8% | 56.6% | 57.5% | 58.1% | 59.0% | 58.2% | 58.1% |
| Operating Margin | 33.4% | 33.4% | 32.7% | 28.2% | 26.8% | 28.0% | 28.3% | 27.4% | 22.2% | 23.2% | 20.6% |
| Net Profit Margin | 26.9% | 26.9% | 27.2% | 21.8% | 21.3% | 21.8% | 14.8% | 21.0% | 15.5% | 13.5% | 16.6% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 24.3% | 24.3% | 25.9% | 22.7% | 24.0% | 25.0% | 17.6% | 27.2% | 19.6% | 15.7% | 18.7% |
| ROA | 17.8% | 17.8% | 18.6% | 15.0% | 15.2% | 15.9% | 10.2% | 14.3% | 11.3% | 9.7% | 10.2% |
| ROIC | 24.5% | 24.5% | 22.8% | 18.0% | 17.9% | 20.3% | 20.2% | 18.6% | 16.2% | 18.6% | 14.7% |
| ROCE | 25.6% | 25.6% | 25.7% | 22.1% | 21.8% | 24.3% | 23.2% | 21.5% | 19.0% | 19.1% | 14.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.13 | 0.13 | 0.14 | 0.18 | 0.38 | 0.27 | 0.28 | 0.52 | 0.61 | 0.14 | 0.55 |
| Debt / EBITDA | 0.44 | 0.44 | 0.44 | 0.57 | 1.19 | 0.77 | 0.72 | 1.31 | 1.74 | 0.43 | 2.01 |
| Net Debt / Equity | — | -0.10 | -0.06 | 0.13 | 0.33 | 0.19 | 0.17 | 0.33 | 0.54 | 0.05 | 0.13 |
| Net Debt / EBITDA | -0.34 | -0.34 | -0.19 | 0.41 | 1.02 | 0.54 | 0.46 | 0.84 | 1.54 | 0.14 | 0.48 |
| Debt / FCF | — | -0.39 | -0.22 | 0.49 | 2.42 | 3.30 | 0.80 | 1.20 | 2.94 | 0.21 | 0.75 |
| Interest Coverage | 37.80 | 37.80 | 133.05 | 28.67 | 24.53 | 44.05 | 38.03 | 20.04 | 15.35 | 19.76 | 16.18 |
Net cash position: cash ($1.5B) exceeds total debt ($826M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.10 | 3.10 | 3.44 | 2.59 | 3.12 | 2.80 | 1.73 | 2.53 | 2.06 | 2.08 | 4.57 |
| Quick Ratio | 2.42 | 2.42 | 2.53 | 1.69 | 1.81 | 1.72 | 1.23 | 1.84 | 1.43 | 1.56 | 3.82 |
| Cash Ratio | 1.05 | 1.05 | 1.19 | 0.26 | 0.30 | 0.40 | 0.32 | 0.77 | 0.26 | 0.37 | 2.28 |
| Asset Turnover | — | 0.63 | 0.63 | 0.68 | 0.63 | 0.70 | 0.68 | 0.64 | 0.63 | 0.76 | 0.60 |
| Inventory Turnover | 2.33 | 2.33 | 2.25 | 2.47 | 1.87 | 2.09 | 2.97 | 2.97 | 3.06 | 3.64 | 3.22 |
| Days Sales Outstanding | — | 66.90 | 70.26 | 65.23 | 60.93 | 58.75 | 71.38 | 58.59 | 74.00 | 75.44 | 79.57 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | 0.8% | 1.0% | 0.8% | 0.8% | 0.6% | 0.8% | 1.2% | 1.3% | 1.7% |
| Payout Ratio | 23.0% | 23.0% | 22.2% | 27.7% | 28.8% | 31.5% | 47.8% | 36.2% | 52.3% | 63.2% | 54.4% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 3.7% | 3.6% | 2.8% | 2.5% | 1.3% | 2.2% | 2.3% | 2.1% | 3.1% |
| FCF Yield | 5.1% | — | 4.4% | 4.6% | 1.7% | 0.6% | 1.7% | 2.5% | 2.2% | 2.9% | 3.1% |
| Buyback Yield | 2.2% | — | 0.8% | 0.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.4% | 0.0% |
| Total Shareholder Yield | 2.2% | — | 1.6% | 1.5% | 0.8% | 0.8% | 0.6% | 0.8% | 1.3% | 1.7% | 1.7% |
| Shares Outstanding | — | $0 | $147M | $148M | $147M | $147M | $146M | $146M | $144M | $144M | $142M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying RMD stock.
ResMed Inc.'s current EV/EBITDA is 16.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 20.7x.
ResMed Inc.'s return on equity (ROE) is 24.3%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 19.3%.
Based on historical data, ResMed Inc. is trading at valuation metrics that vary. Compare with industry peers and growth rates for a complete picture.
ResMed Inc. has 61.1% gross margin and 33.4% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
ResMed Inc.'s Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
SBC dilution and margin volatility
Metrics are mathematically derived from official filings.
Margin Expansion Reflects Pricing Power
Gross margin improved from 56.9% in 2024Q3 to 58.4% in 2026Q4, peaking at 62.2% in 2026Q2, indicating sustained pricing power and cost efficiencies, as per reported financials.
Operating margin expanded from 31.3% to 34.9% over the same period, though it eased to 30.7% in the latest quarter, suggesting some volatility. Net margin remained robust at 26.2% in 2026Q4, supported by strong operational leverage. The recent gross margin dip of 380bps warrants monitoring, as it may signal competitive pressure or input cost inflation.
Stable Returns on Invested Capital
ROIC has hovered between 5.0% and 6.5% over the past ten quarters, with the latest at 5.8%, indicating stable but not compounding returns, based on quarterly data.
ROE similarly ranged from 5.8% to 6.8%, reflecting consistent profitability but limited expansion. The stability suggests the company is maintaining its competitive position rather than generating outsized returns. The modest ROIC relative to peers like Philips (6.4%) may indicate that ResMed's capital intensity is higher, but its superior margins compensate.
Working Capital Cycle Lengthens
Cash conversion cycle extended from 170 days in 2024Q4 to 160 days in 2026Q4, driven by rising DIO from 145 to 139 days, as per financial statements, indicating slower inventory turnover.
DSO remained stable around 65 days, while DPO increased slightly to 44 days, suggesting limited supplier leverage. The lengthening CCC may tie up cash, but the company's strong FCF margin (112.7% in 2026Q4) mitigates the impact. Investors should monitor whether inventory buildup reflects demand anticipation or obsolescence risk.
Deleveraging Strengthens Balance Sheet
Debt-to-equity fell from 0.25 in 2024Q3 to 0.13 in 2026Q4, while D/EBITDA declined from 2.72 to 1.66, indicating reduced leverage and improved debt service capacity, as per reported figures.
Interest coverage remains high at 21.48 in 2026Q4, though it spiked to 63.42 in 2026Q2, reflecting variable interest expense. The conservative leverage provides ample headroom for strategic investments or shareholder returns. The recent $400M goodwill increase in 2026Q4 warrants attention, as it may indicate acquisition activity that could alter the risk profile.
Ample Liquidity with Rising Cash Buffer
Current ratio improved from 2.59 in 2024Q4 to 3.10 in 2026Q4, with cash surging to $1.5B, providing a robust buffer against operational shocks, according to quarterly data.
Quick ratio also strengthened to 2.42, indicating minimal reliance on inventory for short-term obligations. The liquidity position appears resilient even under stress scenarios, given the low debt levels and strong cash generation. However, the spike in CapEx to 10.7% of revenue in 2026Q4 suggests a strategic investment phase that could pressure future liquidity if sustained.
Misapplied Metric: P/E on GAAP Earnings
The P/E ratio is commonly misapplied to ResMed because stock-based compensation distorts GAAP earnings, making forward P/E of 19.78 appear cheaper than economic reality, as per reported financials.
SBC spiked to $104.3M in 2026Q4, up from a ~$25M average, which inflates expenses and understates earnings. Investors should adjust for SBC by using price-to-cash earnings or EV/EBITDA (16.58) to better capture true earning power. The high FCF margin (112.7% in 2026Q4) suggests cash generation is strong, but the dilution from SBC may erode shareholder value over time.