ResMed Inc. (ASX: RMD) shares have had a tough year.
The sleep health giant is trading around $26.53 on Thursday, which means the share price is down more than 30% since this time last year.
That sort of fall can make investors cautious. But I think patient investors should be looking closely at the opportunity.
In my view, ResMed remains one of the highest-quality healthcare businesses on the ASX, and the current valuation looks much more appealing than it did when sentiment was stronger.
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A better price for a strong business
The first reason I would consider buying ResMed shares is valuation.
According to CommSec, consensus earnings per share estimates are $1.57 in FY26, $1.69 in FY27, and $1.84 in FY28.
Based on the current share price, that puts ResMed on roughly 17 times FY26 earnings, 16 times FY27 earnings, and 14 times FY28 earnings.
For a global healthcare company with ResMed's market position and outlook, I think those multiples undervalue it.
Of course, forecasts are only forecasts. The company still needs to deliver, and the market will keep watching competition, margins, product demand, and the impact of weight-loss drugs on sleep apnoea diagnosis and treatment behaviour.
But I think the share price fall has created a much better entry point for investors who are willing to look beyond the next few quarters.
A huge market opportunity
The second reason I like ResMed is the size of the market it serves.
Sleep apnoea is a major global health issue, with more than 1 billion sufferers estimated worldwide. Many of those people remain undiagnosed, which creates a long runway.
Further, ResMed is not simply selling a one-off device. It is part of a treatment system that can include machines, masks, accessories, software, data tools, and ongoing patient support. Once people are diagnosed and begin therapy, they may need replacement products and continued care over many years.
I think that recurring element is important to the investment thesis.
Healthcare companies can be particularly attractive when they solve a problem that is both large and persistent. Poor sleep can affect energy, concentration, heart health, safety, and overall quality of life. As awareness improves, diagnosis rates rise, and healthcare systems put more focus on chronic conditions, ResMed should have opportunities to keep growing.
The company also has the scale, brand, distribution, and clinical relationships to benefit if more people move into treatment.
Foolish takeaway
I think now could be a good time to buy ResMed shares for patient investors.
The stock has fallen heavily, the forward valuation looks reasonable, and the company still has exposure to a very large, underpenetrated healthcare market.
ResMed may take time to win back stronger investor confidence, and I would not expect the share price to rebound quickly. But for investors who can look several years ahead, I think this beaten-down ASX healthcare share looks well worth considering.
