Is ResMed, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for ResMed, Inc. has moved from fair to attractive, indicating a more favorable assessment of its market position. The company appears to be undervalued, supported by a P/E ratio of 36, a PEG ratio of 1.15, and a robust ROCE of 30.33%. In comparison to peers, ResMed's P/E ratio is slightly higher than Edwards Lifesciences Corp. at 31.17 and Agilent Technologies, Inc. at 27.42, but lower than DexCom, Inc. at 53.65, suggesting a competitive valuation within its industry.
Despite recent underperformance against the S&P 500 over the past week and month, where it returned -1.44% and -1.33% respectively, ResMed has shown resilience with a year-to-date return of 17.23%, outperforming the index's 13.30%. This performance, combined with its attractive valuation metrics, reinforces the view that ResMed is positioned favorably in the market.