Latest Ratios: P/E Ratio 23.1x · EV/EBITDA 16.5x · ROE 25.9%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $32.0B | $38.0B | $28.2B | $32.2B | $30.8B | $36.1B | $28.0B | $17.6B | $14.9B | $11.1B | $9.0B |
| Enterprise Value | $31.7B | $37.7B | $28.9B | $33.6B | $31.5B | $36.6B | $28.8B | $18.8B | $15.0B | $11.3B | $9.4B |
| P/E Ratio → | 23.11 | 27.13 | 27.66 | 35.88 | 39.55 | 76.09 | 44.96 | 43.58 | 47.30 | 32.45 | 25.39 |
| P/S Ratio | 6.22 | 7.39 | 6.03 | 7.63 | 8.61 | 11.29 | 9.46 | 6.76 | 6.37 | 5.37 | 4.87 |
| P/B Ratio | 5.43 | 6.37 | 5.81 | 7.80 | 9.17 | 12.51 | 11.20 | 8.51 | 7.24 | 5.66 | 5.29 |
| P/FCF | 19.26 | 22.88 | 21.96 | 57.61 | 157.99 | 58.24 | 40.16 | 46.19 | 34.40 | 32.38 | 18.66 |
| P/OCF | 18.28 | 21.70 | 20.16 | 46.47 | 87.78 | 49.01 | 34.86 | 38.41 | 29.53 | 26.79 | 16.35 |
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 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 7.32 | 6.16 | 7.95 | 8.79 | 11.45 | 9.74 | 7.20 | 6.41 | 5.49 | 5.11 |
| EV / EBITDA | 16.48 | 19.60 | 18.80 | 25.27 | 26.35 | 33.42 | 29.06 | 25.69 | 22.68 | 21.10 | 18.22 |
| EV / EBIT | 18.78 | 22.45 | 22.04 | 28.88 | 32.02 | 40.12 | 35.60 | 33.79 | 26.79 | 24.85 | 21.56 |
| EV / FCF | — | 22.66 | 22.45 | 60.02 | 161.28 | 59.05 | 41.36 | 49.13 | 34.61 | 33.13 | 19.58 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 59.4% | 59.4% | 56.7% | 55.8% | 56.6% | 57.5% | 58.1% | 59.0% | 58.2% | 58.1% | 58.0% |
| Operating Margin | 32.7% | 32.7% | 28.2% | 26.8% | 28.0% | 28.3% | 27.4% | 22.2% | 23.2% | 20.6% | 23.3% |
| Net Profit Margin | 27.2% | 27.2% | 21.8% | 21.3% | 21.8% | 14.8% | 21.0% | 15.5% | 13.5% | 16.6% | 19.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 25.9% | 25.9% | 22.7% | 24.0% | 25.0% | 17.6% | 27.2% | 19.6% | 15.7% | 18.7% | 21.5% |
| ROA | 18.6% | 18.6% | 15.0% | 15.2% | 15.9% | 10.2% | 14.3% | 11.3% | 9.7% | 10.2% | 13.0% |
| ROIC | 22.8% | 22.8% | 18.0% | 17.9% | 20.3% | 20.2% | 18.6% | 16.2% | 18.6% | 14.7% | 19.5% |
| ROCE | 25.7% | 25.7% | 22.1% | 21.8% | 24.3% | 23.2% | 21.5% | 19.0% | 19.1% | 14.9% | 18.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.14 | 0.14 | 0.18 | 0.38 | 0.27 | 0.28 | 0.52 | 0.61 | 0.14 | 0.55 | 0.69 |
| Debt / EBITDA | 0.44 | 0.44 | 0.57 | 1.19 | 0.77 | 0.72 | 1.31 | 1.74 | 0.43 | 2.01 | 2.27 |
| Net Debt / Equity | — | -0.06 | 0.13 | 0.33 | 0.19 | 0.17 | 0.33 | 0.54 | 0.05 | 0.13 | 0.26 |
| Net Debt / EBITDA | -0.19 | -0.19 | 0.41 | 1.02 | 0.54 | 0.46 | 0.84 | 1.54 | 0.14 | 0.48 | 0.86 |
| Debt / FCF | — | -0.22 | 0.49 | 2.42 | 3.30 | 0.80 | 1.20 | 2.94 | 0.21 | 0.75 | 0.92 |
| Interest Coverage | 133.05 | 133.05 | 28.67 | 24.53 | 44.05 | 38.03 | 20.04 | 15.35 | 19.76 | 16.18 | 38.90 |
Net cash position: cash ($1.2B) exceeds total debt ($852M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.44 | 3.44 | 2.59 | 3.12 | 2.80 | 1.73 | 2.53 | 2.06 | 2.08 | 4.57 | 2.23 |
| Quick Ratio | 2.53 | 2.53 | 1.69 | 1.81 | 1.72 | 1.23 | 1.84 | 1.43 | 1.56 | 3.82 | 1.87 |
| Cash Ratio | 1.19 | 1.19 | 0.26 | 0.30 | 0.40 | 0.32 | 0.77 | 0.26 | 0.37 | 2.28 | 1.15 |
| Asset Turnover | — | 0.63 | 0.68 | 0.63 | 0.70 | 0.68 | 0.64 | 0.63 | 0.76 | 0.60 | 0.56 |
| Inventory Turnover | 2.25 | 2.25 | 2.47 | 1.87 | 2.09 | 2.97 | 2.97 | 3.06 | 3.64 | 3.22 | 3.44 |
| Days Sales Outstanding | — | 70.26 | 65.23 | 60.93 | 58.75 | 70.14 | 58.59 | 74.00 | 75.44 | 79.57 | 75.85 |
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 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.0% | 0.8% | 1.0% | 0.8% | 0.8% | 0.6% | 0.8% | 1.2% | 1.3% | 1.7% | 1.9% |
| Payout Ratio | 22.2% | 22.2% | 27.7% | 28.8% | 31.5% | 47.8% | 36.2% | 52.3% | 63.2% | 54.4% | 47.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.3% | 3.7% | 3.6% | 2.8% | 2.5% | 1.3% | 2.2% | 2.3% | 2.1% | 3.1% | 3.9% |
| FCF Yield | 5.2% | 4.4% | 4.6% | 1.7% | 0.6% | 1.7% | 2.5% | 2.2% | 2.9% | 3.1% | 5.4% |
| Buyback Yield | 0.9% | 0.8% | 0.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.4% | 0.0% | 1.1% |
| Total Shareholder Yield | 1.9% | 1.6% | 1.5% | 0.8% | 0.8% | 0.6% | 0.8% | 1.3% | 1.7% | 1.7% | 3.0% |
| Shares Outstanding | — | $147M | $148M | $147M | $147M | $146M | $146M | $144M | $144M | $142M | $142M |
Competitive Re-entry and Reimbursement
According to current market data, ResMed trades at a forward P/E of 18.02, which appears to command a premium relative to traditional hardware-focused medical device peers, reflecting investor confidence in the company's integrated SaaS ecosystem and its ability to maintain market share despite increased competitive pressures.
The current valuation suggests that the market is pricing in a durable growth profile supported by recurring software revenue rather than just transactional device sales. Investors should monitor whether this premium holds as the competitive landscape shifts, as the current PEG ratio of 1.21 implies that growth expectations remain relatively grounded compared to high-growth software peers.
Based on reported figures, ResMed's ROIC has trended toward 6.5% in 2026Q3, indicating that the firm is effectively compounding returns on its invested capital by leveraging its high-margin SaaS segment to offset the capital-intensive nature of its global medical device manufacturing and distribution operations.
The steady improvement in ROIC from 3.7% in 2024Q2 suggests that the company's strategic pivot toward connected health is yielding tangible efficiency gains. This trend warrants further investigation to determine if the company can continue to scale its digital platform without requiring significant incremental capital expenditures.
As reported in financial statements, the company's cash conversion cycle remains elevated at 171 days in 2026Q3, primarily driven by high inventory days of 153, which suggests that ResMed maintains significant safety stocks to mitigate supply chain risks in the volatile medical instrument and supply industry.
While the high inventory levels provide a buffer against component shortages, they also tie up significant working capital that could otherwise be deployed for share repurchases or R&D. Investors should monitor whether these inventory levels normalize as global logistics stabilize, as a reduction could significantly improve the company's free cash flow conversion.
Based on the provided balance sheet data, ResMed maintains a highly conservative capital structure with a debt-to-equity ratio of 0.13, providing the firm with substantial financial flexibility to navigate potential regulatory shifts or competitive pricing pressures without the burden of significant interest expense obligations.
The company's ability to maintain such low leverage while simultaneously funding strategic acquisitions and dividends is a testament to its strong operational cash generation. This fortress balance sheet position serves as a critical defensive moat, allowing the firm to prioritize long-term R&D investment even during periods of industry-wide economic uncertainty.
The most commonly misapplied metric for ResMed is the simple P/S ratio, which obscures the underlying shift toward high-margin SaaS revenue and fails to account for the recurring nature of the company's mask resupply business, leading to an incomplete assessment of the firm's true earning power.
Analysts should instead focus on EV/EBITDA or P/FCF, which better capture the cash-generative nature of the integrated business model. Relying solely on hardware-centric multiples risks underestimating the value of the company's sticky digital ecosystem, which provides a recurring revenue floor that traditional device manufacturers lack.
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 P/E ratio is 23.1x. The historical average is 36.1x. This places it at the 20th percentile of its historical range.
ResMed Inc.'s current EV/EBITDA is 16.5x. 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 25.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 18.9%.
Based on historical data, ResMed Inc. is trading at a P/E of 23.1x. This is at the 20th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
ResMed Inc.'s current dividend yield is 0.96% with a payout ratio of 22.2%.
ResMed Inc. has 59.4% gross margin and 32.7% 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.