ResMed (ASX:RMD) PEG Ratio : 2.10 (As of Dec. 13, 2024)

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What is ResMed PEG Ratio?

PE Ratio without NRI / 5-Year EBITDA Growth Rate*

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, ResMed's PE Ratio without NRI is 30.27. ResMed's 5-Year EBITDA growth rate is 14.40%. Therefore, ResMed's PEG Ratio for today is 2.10.

* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.

The historical rank and industry rank for ResMed's PEG Ratio or its related term are showing as below:

ASX:RMD' s PEG Ratio Range Over the Past 10 Years
Min: 1.39 Med: 2.58 Max: 6.1
Current: 2.01

During the past 13 years, ResMed's highest PEG Ratio was 6.10. The lowest was 1.39. And the median was 2.58.

ASX:RMD's PEG Ratio is ranked worse than
52.57% of 253 companies
in the Medical Devices & Instruments industry
Industry Median: 1.92 vs ASX:RMD: 2.01

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.

ResMed PEG Ratio Historical Data

The historical data trend for ResMed's PEG Ratio 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.

* Premium members only.

ResMed PEG Ratio Chart

ResMed Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

PEG Ratio

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3.52

2.87

2.15

2.25

1.78

ResMed Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
PEG Ratio	Get a 7-Day Free Trial															1.52	1.74	1.91	1.78	2.22

Competitive Comparison of ResMed's PEG Ratio

For the Medical Instruments & Supplies subindustry, ResMed's PEG Ratio, along with its competitors' market caps and PEG Ratio 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's PEG Ratio Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, ResMed's PEG Ratio distribution charts can be found below:

* The bar in red indicates where ResMed's PEG Ratio falls into.

ResMed PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

ResMed's PEG Ratio for today is calculated as

PEG Ratio	=	PE Ratio without NRI	/	5-Year EBITDA Growth Rate*
	=	30.265273311897	/	14.40
	=	2.10

* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.

ResMed (ASX:RMD) PEG Ratio Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.

ResMed PEG Ratio Related Terms

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ResMed Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » ResMed Inc (ASX:RMD) » Definitions » PEG Ratio

Comparable Companies

Traded in Other Exchanges

RSMDF:USA RMD:USA RMD:Mexico 0KW4:UK RME:Germany RME:Germany R1MD34:Brazil RMD:Austria

Address

9001 Spectrum Center Boulevard, San Diego, CA, USA, 92123

Website

https://www.resmed.com

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 ageing 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.