Using the PEG framework with analyst consensus forward EPS growth of 12.2% plus 1.0% dividend yield, ResMed Inc. has a fair value of $134.83 based on NTM EPS (FY2026) of $11.05. The current PEG ratio is 1.65.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 11.2% |
| Dividend Yield | +1.0% |
| Adjusted Growth (clamped 8–25%) | 12.2% |
| Fair P/E | 12.2x |
| NTM EPS (FY2026) | $11.05 |
| Fair Value | $134.83 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $9.51 | — | — |
| FY2026E | $11.05 | +16.2% | 20 |
| FY2027E | $12.27 | +11.0% | 20 |
| FY2028E | $13.43 | +9.4% | 20 |
| FY2029E | $14.38 | +7.1% | 10 |
| FY2030E | $16.20 | +12.6% | 10 |
5Y Forward EPS CAGR: 11.2%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $474.5M | $3.24 | — |
| FY2022 | $779.4M | $5.30 | +63.6% |
| FY2023 | $897.6M | $6.09 | +14.9% |
| FY2024 | $1.0B | $6.92 | +13.6% |
| FY2025 | $1.4B | $9.51 | +37.4% |
4Y Historical EPS CAGR: 30.9%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.