Intuitive Surgical Inc (ISRG) 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 -130% for ISRG.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 11.7% (average of 3 methods) values the shares at $175.09; the price of $402.09 is 130% above that value, and 69% of that value comes from beyond year five.
Leak Score 47/100 on 8 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 | ISRG | RMD |
|---|---|---|
| Verdict | Overvalued | Slightly undervalued |
| Price | $402.09 | $221.97 |
| Intrinsic value | $175.09 | $239.56 |
| Margin of safety | -130% | +7% |
| Leak Score | 47/100 (8/12) | 75/100 (10/12) |
| Market cap | $142.0B | $32.0B |
| Revenue growth, 5 years | 18.2% | 12.1% |
| Operating margin | 31.3% | 34.0% |
| Net margin | 28.4% | 26.9% |
| Return on equity | 17.4% | 24.3% |
| Debt to equity | 0.00 | 0.13 |
| P/E | 46.1x | 21.3x |
| Forward P/E | 33.3x | 16.7x |
| P/B | 7.8x | 4.9x |
| Dividend yield | — | 1.2% |