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 16th 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:
Its compound free cash flow growth rate, as measured over the past 5.79 years, is 0% -- higher than only 24.98% 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 47.25% of tickers in our DCF set.
Relative to other stocks in its sector (Healthcare), Varian Medical Systems Inc has a reliance on debt greater than only 20.21% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Varian Medical Systems Inc? See FGEN, IDXX, TFX, BSX, and LMNX.
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Technological advancements in OIS, associated advantages of OIS over conventional record maintenance, integration of oncology information systems for the treatment rare cancer types and surge in prevalence of cancer worldwide are key factors contributing to high CAGR of Oncology Information
Siemens Healthineers plans a two-step capital increase to raise 7.5 billion euros (US$8.80 billion) via share placements to help finance its acquisition of Varian Medical Systems , sources close to the matter said on Monday.