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 26.52. ResMed's 5-Year EBITDA growth rate is 15.20%. Therefore, ResMed's PEG Ratio for today is 1.74.
* 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:
RMD'
s PEG Ratio Range Over the Past 10 Years
Min: 0.94 Med: 2.47 Max: 9.09
Current: 1.74
During the past 13 years, ResMed's highest PEG Ratio was 9.09. The lowest was 0.94. And the median was 2.47.
RMD's PEG Ratio is ranked worse than 50.4% of 252
companies
in the Medical Devices & Instruments industry
Industry Median: 1.73
vs RMD: 1.74
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 Annual Data
Trend
Jun14
Jun15
Jun16
Jun17
Jun18
Jun19
Jun20
Jun21
Jun22
Jun23
PEG Ratio
4.65
3.93
2.87
2.14
2.21
ResMed Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
PEG Ratio
2.20
2.22
2.21
1.50
1.72
Competitive Comparison
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 PEG Ratio Distribution
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.
* 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.
* 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 (NYSE: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
Thank you for viewing the detailed overview of ResMed's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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