Is ResMed, Inc. overvalued or undervalued?

As of 31 July 2025, the valuation grade for ResMed, Inc. has moved from fair to attractive, indicating a more favorable assessment. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 36, a Price to Book Value of 8.57, and an EV to EBITDA ratio of 25.87. In comparison to peers, ResMed's P/E ratio is higher than Agilent Technologies, Inc. at 27.42, but lower than Edwards Lifesciences Corp. at 31.17, suggesting it is competitively positioned within its industry.
While ResMed has shown strong returns year-to-date at 19.50%, it has underperformed the S&P 500's 12.22% during the same period, and its long-term performance over 5 years is significantly lower than the S&P 500's 96.61%. Overall, these factors suggest that ResMed is fairly valued in the current market context.