ResMed (ASX:RMD) EV-to-EBIT: 13.50 (As of Jul. 25, 2026) — 50% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

ASX:RMD ResMed Inc ASX:RMD
98 GF Score
Price A$27.43
GF Value A$38.52
Valuation Modestly Undervalued
! 1 Warning Sign
View Full Analysis

What is ResMed EV-to-EBIT?

ResMed ASX:RMD -0.40% 98 EV-to-EBIT is 13.50 as of Jul. 25, 2026, which is 50% below its 10-year median of 26.82. GuruFocus rates ASX:RMD with a GF Score™ of 98/100 and a GF Value™ of A$38.52 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 465 Medical Devices & Instruments companies, ResMed ranks better than 62.58% on this metric.

EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, ResMed's Enterprise Value is A$38,657 Mil. ResMed's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was A$2,863 Mil. Therefore, ResMed's EV-to-EBIT for today is 13.50.

The historical rank and industry rank for ResMed's EV-to-EBIT or its related term are showing as below:

ASX:RMD' s EV-to-EBIT Range Over the Past 10 Years
Min: 13.92   Med: 26.82   Max: 48.08
Current: 14.35

During the past 13 years, the highest EV-to-EBIT of ResMed was 48.08. The lowest was 13.92. And the median was 26.82.

ASX:RMD's EV-to-EBIT is ranked better than
62.58% of 465 companies
in the Medical Devices & Instruments industry
Industry Median: 18.19 vs ASX:RMD: 14.35

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %. ResMed's Enterprise Value for the quarter that ended in Mar. 2026 was A$45,480 Mil. ResMed's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was A$2,863 Mil. ResMed's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 6.30%.


ResMed  (ASX:RMD) EV-to-EBIT Explanation

This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %.

ResMed's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

Earnings Yield (Joel Greenblatt) % (Q: Mar. 2026 ) =EBIT / Enterprise Value (Q: Mar. 2026 )
=2863.32/45480.21332
=6.30 %

ResMed's Enterprise Value for the quarter that ended in Mar. 2026 was A$45,480 Mil.
ResMed's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was A$2,863 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


ResMed EV-to-EBIT Related Terms


ResMed EV-to-EBIT Historical Data

* Premium members only.

The historical data trend for ResMed's EV-to-EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

ResMed EV-to-EBIT Chart

ResMed Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
EV-to-EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 39.90 31.88 29.07 20.78 22.17

ResMed Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EV-to-EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.30 22.17 22.36 18.73 16.56

ASX:RMD vs MDLN, WST, BDX: EV-to-EBIT Comparison

For the Medical Instruments & Supplies subindustry, ResMed's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


ResMed EV-to-EBIT vs Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, ResMed's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where ResMed's EV-to-EBIT falls into.


ASX:RMD
98GF Score
ResMed Inc ASX:RMD
EV-to-EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

ResMed EV-to-EBIT Calculation

ResMed's EV-to-EBIT for today is calculated as:

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=38656.649/2863.32
=13.50

ResMed's current Enterprise Value is A$38,657 Mil.
ResMed's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was A$2,863 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EV-to-EBIT →
What does a EV-to-EBIT of 13.50 mean?
ResMed (ASX:RMD) has a EV-to-EBIT of 13.50 as of Jul. 25, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on ResMed and its competitors. This is 50% below median its historical median of 26.82. Over the past decade, ResMed's EV-to-EBIT has ranged from 13.92 to 48.08. According to the industry distribution chart, ResMed ranks #174 out of 465 companies in the Medical Devices & Instruments industry, placing it in the top 37.4%.
Is ResMed's EV-to-EBIT too high?
ResMed's current EV-to-EBIT of 13.50 is 50% below median its 10-year median of 26.82. Over the past 10 years, this metric has ranged from a low of 13.92 to a high of 48.08. The Medical Devices & Instruments industry median EV-to-EBIT is 18.19. ResMed's value of 13.50 is 25.8% below this industry median. Based on the distribution chart, ResMed ranks #174 out of 465 companies in the Medical Devices & Instruments industry, which is above the industry midpoint. Overall, ResMed has a GF Score™ of 98/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ResMed's EV-to-EBIT compare to MDLN and WST?
According to the Medical Devices & Instruments industry distribution chart, ResMed ranks #174 out of 465 companies for EV-to-EBIT. This puts ResMed in the upper half of its industry. The industry median EV-to-EBIT is 18.19. ResMed's value of 13.50 is 25.8% below this benchmark. Historically, ResMed's own EV-to-EBIT has ranged from 13.92 to 48.08 over the past decade. While the company's 10-year median is 26.82 vs. the industry median of 18.19, ResMed has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for a Medical Devices & Instruments company?
The median EV-to-EBIT among Medical Devices & Instruments companies is 18.19, based on 465 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ResMed's current EV-to-EBIT of 13.50 is 25.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on ResMed and its competitors. For the Medical Devices & Instruments industry, the median EV-to-EBIT is 18.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ResMed's current EV-to-EBIT is 13.50, which is 50% below median its own 10-year median of 26.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ResMed stock overvalued right now?
Based on GuruFocus' analysis, ResMed (ASX:RMD) is currently considered Modestly Undervalued. The stock's GF Value™ is A$38.52, compared to a current price of A$27.43 — trading 28.8% below its estimated fair value. The current EV-to-EBIT is 13.50, which is 50% below median its 10-year median of 26.82 and 25.8% below the Medical Devices & Instruments industry median of 18.19. ResMed's overall GF Score™ is 98/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For ResMed (ASX:RMD), the current EV-to-EBIT is 13.50 as of Jul. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is ResMed (ASX:RMD) Overvalued in 2026?

Based on GuruFocus' analysis, ResMed stock appears to be undervalued. The current stock price of A$27.43 is trading 28.8% below its estimated GF Value™ of A$38.52. GuruFocus considers ResMed to be Modestly Undervalued.

Key valuation signals for ASX:RMD:

  • EV-to-EBIT: 13.50 (50% below median its 10-year median of 26.82)
  • GF Value™: A$38.52 vs. price of A$27.43 (28.8% below fair value)
  • GF Score™: 98/100 with 1 warning sign
  • Industry Position: 25.8% below the Medical Devices & Instruments median (#174 of 465)

No single metric tells the full story. See the ASX:RMD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


ResMed Business Description

Address 9001 Spectrum Center Boulevard, San Diego, CA, USA, 92123
ResMed is one of the largest respiratory care device companies globally, primarily developing and supplying flow generators, masks, and accessories for the treatment of sleep apnea. Increasing diagnosis of sleep apnea combined with aging populations and increasing prevalence of obesity is resulting in a structurally growing market. The company earns roughly two-thirds of its revenue in the Americas and the balance across other regions dominated by Europe, Japan, and Australia. Recent developments and acquisitions have focused on digital health as ResMed is aiming to differentiate itself through the provision of clinical data for use by the patient, medical care advisor, and payer in the out-of-hospital setting.
98GF Score

Get the complete analysis for ASX:RMD

EV-to-EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$27.43
Price
A$38.52
GF Value