Alcon Inc (ALC) is overvalued and Resmed Inc (RMD) is slightly undervalued.
Against our estimates of intrinsic value, RMD trades at the wider discount: a margin of safety of +7%, against -131% for ALC.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.9% (average of 3 methods) values the shares at $28.43; the price of $65.59 is 131% above that value, and 76% of that value comes from beyond year five.
Leak Score 14/100 on 3 of 12 signals
Discounting its cash flows at 9.0% (average of 3 methods) values the shares at $239.56; the price of $221.97 is 7% below that value, and 76% of that value comes from beyond year five.
Leak Score 75/100 on 10 of 12 signals
| Metric | ALC | RMD |
|---|---|---|
| Verdict | Overvalued | Slightly undervalued |
| Price | $65.59 | $221.97 |
| Intrinsic value | $28.43 | $239.56 |
| Margin of safety | -131% | +7% |
| Leak Score | 14/100 (3/12) | 75/100 (10/12) |
| Market cap | $31.6B | $32.0B |
| Revenue growth, 5 years | 8.8% | 12.1% |
| Operating margin | 10.9% | 34.0% |
| Net margin | 5.9% | 26.9% |
| Return on equity | 2.9% | 24.3% |
| Debt to equity | 0.25 | 0.13 |
| P/E | 50.3x | 21.3x |
| Forward P/E | 16.6x | 16.7x |
| P/B | 1.5x | 4.9x |
| Dividend yield | 0.6% | 1.2% |