Resmed Inc (RMD) is slightly undervalued and West Pharmaceutical Services Inc (WST) is overvalued.
Against our estimates of intrinsic value, RMD trades at the wider discount: a margin of safety of +7%, against -256% for WST.
Values as of the 22 Sept 2026 close.
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
Discounting its cash flows at 10.4% (average of 3 methods) values the shares at $104.26; the price of $371.09 is 256% above that value, and 71% of that value comes from beyond year five.
Leak Score 61/100 on 10 of 12 signals
| Metric | RMD | WST |
|---|---|---|
| Verdict | Slightly undervalued | Overvalued |
| Price | $221.97 | $371.09 |
| Intrinsic value | $239.56 | $104.26 |
| Margin of safety | +7% | -256% |
| Leak Score | 75/100 (10/12) | 61/100 (10/12) |
| Market cap | $32.0B | $26.1B |
| Revenue growth, 5 years | 12.1% | 7.4% |
| Operating margin | 34.0% | 22.0% |
| Net margin | 26.9% | 17.0% |
| Return on equity | 24.3% | 19.1% |
| Debt to equity | 0.13 | 0.11 |
| P/E | 21.3x | 47.4x |
| Forward P/E | 16.7x | 37.1x |
| P/B | 4.9x | 8.7x |
| Dividend yield | 1.2% | 0.2% |