Varian Medical Systems designs, manufactures, sells, and services medical devices and software products for treating cancer and other medical conditions in the United States. The company operates in two segments, Oncology Systems and Imaging Components. The company was founded in 1948 and is based in Palo Alto, California.
VAR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for VAR, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Varian Medical Systems Inc ranked in the 17th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 78.83%. The most interesting components of our discounted cash flow analysis for Varian Medical Systems Inc ended up being:
Its compound free cash flow growth rate, as measured over the past 5.47 years, is -0.03% -- higher than only 24.86% of stocks in our DCF forecasting set.
VAR's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 46.59% of tickers in our DCF set.
As a business, Varian Medical Systems Inc experienced a tax rate of about 23% over the past twelve months; relative to its sector (Healthcare), this tax rate is higher than 87.89% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
MYGN, ARA, EW, PRGO, and GMED can be thought of as valuation peers to VAR, in the sense that they are in the Healthcare sector and have a similar price forecast based on DCF valuation.
Varian (NYSE: VAR) today announced it received the "Best After-Sales Service Award for Radiotherapy Products" in the 2019 Chinese Medical Devices Industry Data and After-Sales Service Survey for the third year in a row. Varian also led in metrics of Market Share, Repurchasing Reference, and Net Promoter Score.
Dr. Cipto Mangunkusumo Hospital, Jakarta has become the first hospital in Indonesia to treat patients using Varian's Halcyon™ system. The first patient, a 14 year old female, was treated for Hodgkin lymphoma.
Long-term results of the Stereotactic Ablative Radiotherapy for Comprehensive Treatment of Oligometastatic Cancers (SABR-COMET) study published June 2, 2020 in the Journal of Clinical Oncology showed positive increases in overall survival for patients with multiple sites of metastasis when treated with stereotactic ablative radiotherapy (SABR) versus standard-of-care.1 Through the extended follow-up, the impact of SABR on overall survival was larger in magnitude than in the study's initial analysis published last year in The Lancet.2
In this article we will check out the progression of hedge fund sentiment towards Varian Medical Systems, Inc. (NYSE:VAR) and determine whether it is a good investment right now. We at Insider Monkey like to examine what billionaires and hedge funds think of a company before spending days of research on it. Given their 2 […]