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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Varian Medical Systems Inc. To summarize, we found that Varian Medical Systems Inc ranked in the 14th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Varian Medical Systems Inc, consider:
In the past 5.52 years, Varian Medical Systems Inc has a compound free cash flow growth rate of -0.03%; that's better than only 20.12% of cash flow producing equities in the Healthcare sector, where it is classified.
The business' balance sheet reveals debt to be 6% of the company's capital (with equity being the remaining amount). Approximately merely 15.31% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
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 52.41% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
LCTC, RMD, A, GMED, and MGLN 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.