VREX Valuation

Varex Imaging Corp

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11.550

+0.08(0.697%)1D

Overview
Forecast
Valuation
Earnings

VREX Relative Valuation

VREX's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, VREX is overvalued; if below, it's undervalued.

Historical Valuation

Varex Imaging Corp (VREX) is now in the Fair zone, suggesting that its current forward PE ratio of 14.94 is considered Fairly compared with the five-year average of 20.79. The fair price of Varex Imaging Corp (VREX) is between 10.99 to 19.82 according to relative valuation methord.

Relative Value

Fair Zone

10.99-19.82

Current Price：11.47

Fair

14.94

Trailing

Forward

6.15

EV/EBITDA

Varex Imaging Corp. (VREX) has a current EV/EBITDA of 6.15. The 5-year average EV/EBITDA is 9.15. The thresholds are as follows: Strongly Undervalued below 6.07, Undervalued between 6.07 and 7.61, Fairly Valued between 10.68 and 7.61, Overvalued between 10.68 and 12.22, and Strongly Overvalued above 12.22. The current Forward EV/EBITDA of 6.15 falls within the Undervalued range.

10.01

EV/EBIT

Varex Imaging Corp. (VREX) has a current EV/EBIT of 10.01. The 5-year average EV/EBIT is 13.52. The thresholds are as follows: Strongly Undervalued below 7.02, Undervalued between 7.02 and 10.27, Fairly Valued between 16.77 and 10.27, Overvalued between 16.77 and 20.02, and Strongly Overvalued above 20.02. The current Forward EV/EBIT of 10.01 falls within the Undervalued range.

0.56

Varex Imaging Corp. (VREX) has a current PS of 0.56. The 5-year average PS is 0.90. The thresholds are as follows: Strongly Undervalued below 0.39, Undervalued between 0.39 and 0.65, Fairly Valued between 1.15 and 0.65, Overvalued between 1.15 and 1.41, and Strongly Overvalued above 1.41. The current Forward PS of 0.56 falls within the Undervalued range.

6.33

P/OCF

Varex Imaging Corp. (VREX) has a current P/OCF of 6.33. The 5-year average P/OCF is 17.51. The thresholds are as follows: Strongly Undervalued below -10.61, Undervalued between -10.61 and 3.45, Fairly Valued between 31.57 and 3.45, Overvalued between 31.57 and 45.63, and Strongly Overvalued above 45.63. The current Forward P/OCF of 6.33 falls within the Historic Trend Line -Fairly Valued range.

8.63

P/FCF

Varex Imaging Corp. (VREX) has a current P/FCF of 8.63. The 5-year average P/FCF is 39.90. The thresholds are as follows: Strongly Undervalued below -50.64, Undervalued between -50.64 and -5.37, Fairly Valued between 85.17 and -5.37, Overvalued between 85.17 and 130.44, and Strongly Overvalued above 130.44. The current Forward P/FCF of 8.63 falls within the Historic Trend Line -Fairly Valued range.

Varex Imaging Corp (VREX) has a current Price-to-Book (P/B) ratio of 1.05. Compared to its 3-year average P/B ratio of 1.23 , the current P/B ratio is approximately -14.89% higher. Relative to its 5-year average P/B ratio of 1.49, the current P/B ratio is about -29.92% higher. Varex Imaging Corp (VREX) has a Forward Free Cash Flow (FCF) yield of approximately 7.66%. Compared to its 3-year average FCF yield of 6.43%, the current FCF yield is approximately 19.15% lower. Relative to its 5-year average FCF yield of 4.99% , the current FCF yield is about 53.55% lower.

1.05

P/B

Median3y

1.23

Median5y

1.49

7.64

FCF Yield

Median3y

6.43

Median5y

4.99

Competitors Valuation Multiple

The average P/S ratio for VREX's competitors is 4.92, providing a benchmark for relative valuation. Varex Imaging Corp Corp (VREX) exhibits a P/S ratio of 0.56, which is -88.65% above the industry average. Given its robust revenue growth of -2.92%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Standard BioTools Inc

Treace Medical Concepts Inc

Semler Scientific Inc

Performance Decomposition

Market capitalization of VREX decreased by 8.09% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -0.06 to -3.56.

The secondary factor is the Revenue Growth, contributed -2.92%to the performance.

Overall, the performance of VREX in the past 1 year is driven by P/E Change. Which is more unsustainable.

-2.92%

209.10M → 203.00M

Revenue Growth

-6195.83%

0.72 → -43.89

Margin Expansion

6190.66%

-0.06 → -3.56

P/E Change

-8.09%