Varex Imaging Corporation

VREX

HealthcareMedical - DevicesNASDAQ

$11.83

Market Cap: $495.91M

Varex Imaging Corporation (VREX) Valuation Summary

Updated May 10, 2026 17:30

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.08 – $33.41	$5.57	-52.9%
Revenue DCF 10Y	$0.17 – $40.26	$10.88	-8.1%
▸ Trading Multiples
EV/Revenue	$28.72 – $352.34	$59.10	+399.5%

Valuation History

DCF Analysis

Varex Imaging Corporation (VREX) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$10.88

Market Price

$11.83

Upside / Downside

-8.1%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -3.3% to a target of 13.2% over 5 years, discounted at a WACC of 8.8%, Varex Imaging Corporation (VREX) has an intrinsic value of $10.88 per share (range: $0.17 – $40.26).

Key Assumptions

Current Operating Margin

-3.3%

Target Operating Margin

13.2%

WACC

8.8%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

2.5%

Target CapEx/Rev

6.0%

D&A/Revenue

3.9%

Tax Rate

40.0%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	872	3.3%	0.0%	0	0	34	(25)	-6	14	14
2027	906	3.9%	3.3%	30	18	35	(29)	15	9	8
2028	956	5.5%	6.6%	63	38	37	(34)	22	19	15
2029	1,013	6.0%	9.9%	100	60	39	(40)	25	34	26
2030	1,074	6.0%	13.2%	142	85	41	(46)	27	54	37
2031	1,087	1.2%	13.2%	143	86	42	(50)	5	72	45
2032	1,103	1.5%	13.2%	146	87	42	(55)	7	68	39
2033	1,124	1.9%	13.2%	148	89	43	(60)	9	63	34
2034	1,150	2.3%	13.2%	152	91	44	(65)	11	59	29
2035	1,180	2.6%	13.2%	156	93	45	(71)	13	55	25

Enterprise Value Bridge

Sum of PV(FCFF)271

Terminal Value (Gordon Growth at 3.0%)972

PV of Terminal Value436

Enterprise Value707

(–) Net Debt257

Equity Value450

(÷) Shares Outstanding41

Fair Value per Share$10.88

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.2%	10.2%	13.2%	16.2%	19.2%
6.8%	$0	$10	$20	$30	$40
7.8%	$-1	$7	$15	$22	$30
8.8%	$-2	$4	$11	$17	$24
9.8%	$-3	$3	$8	$14	$19
10.8%	$-3	$2	$6	$11	$16

Current price: $11.83. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 43.7% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Varex Imaging Corporation (VREX) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$5.57

Market Price

$11.83

Upside / Downside

-52.9%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-3.3%

Target Operating Margin

13.2%

WACC

8.8%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

2.5%

Target CapEx/Rev

6.0%

D&A/Revenue

3.9%

Tax Rate

40.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	872	3.3%	0.0%	0	0	34	(28)	-6	11	11
2027	906	3.9%	3.3%	30	18	35	(36)	15	3	2
2028	956	5.5%	6.6%	63	38	37	(44)	22	9	7
2029	1,013	6.0%	9.9%	100	60	39	(54)	25	20	15
2030	1,074	6.0%	13.2%	142	85	41	(64)	27	35	24

Enterprise Value Bridge

Sum of PV(FCFF)59

Terminal Value (Gordon Growth at 3.0%)626

PV of Terminal Value428

Enterprise Value487

(–) Net Debt257

Equity Value231

(÷) Shares Outstanding41

Fair Value per Share$5.57

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.2%	10.2%	13.2%	16.2%	19.2%
6.8%	$-7	$2	$12	$23	$33
7.8%	$-7	$0	$8	$16	$25
8.8%	$-7	$-1	$6	$12	$19
9.8%	$-7	$-2	$4	$9	$15
10.8%	$-7	$-3	$2	$7	$12

Current price: $11.83. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 43.7% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$59.10

Market Price

$11.83

Upside / Downside

+399.5%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Varex Imaging Corporation (VREX) has a fair value of $59.10 based on 7 comparable companies in the Medical - Devices industry.

EV/Revenue Valuation — Medical - Devices

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Varex Imaging CorporationVREX	490	0.9x	0.9x
Avanos Medical, Inc.AVNS	1,161	1.7x	1.8x
Cullinan Therapeutics, Inc.CGEM	894	44.0x	33.9x
Lexicon Pharmaceuticals, Inc.LXRX	847	17.6x	25.8x
CeriBell, Inc.CBLL	765	8.4x	11.6x
Cytek Biosciences, Inc.CTKB	593	2.6x	2.7x
Orthofix Medical Inc.OFIX	471	0.8x	0.7x
Standard BioTools Inc.LAB	398	3.6x	1.8x
Industry Median		3.6x	2.7x
(*) Revenue		845	872
= Enterprise Value		3,076	2,331
(-) Net Debt		257	257
Equity Value		2,819	2,074
(/) Outstanding shares		41	41
Fair Price		$68	$50

Selected Fair Value (avg of trailing + forward)

$59.10

+399.5%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$0.08 – $33.41

$5.57

-52.9%

Revenue DCF 10Y

$0.17 – $40.26

$10.88

-8.1%

▸ Trading Multiples

EV/Revenue

$28.72 – $352.34

$59.10

+399.5%

DCF Analysis

Varex Imaging Corporation (VREX) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$10.88

Market Price

$11.83

Upside / Downside

-8.1%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-3.3%

Target Operating Margin

13.2%

WACC

8.8%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

2.5%

Target CapEx/Rev

6.0%

D&A/Revenue

3.9%

Tax Rate

40.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	872	3.3%	0.0%	0	0	34	(25)	-6	14	14
2027	906	3.9%	3.3%	30	18	35	(29)	15	9	8
2028	956	5.5%	6.6%	63	38	37	(34)	22	19	15
2029	1,013	6.0%	9.9%	100	60	39	(40)	25	34	26
2030	1,074	6.0%	13.2%	142	85	41	(46)	27	54	37
2031	1,087	1.2%	13.2%	143	86	42	(50)	5	72	45
2032	1,103	1.5%	13.2%	146	87	42	(55)	7	68	39
2033	1,124	1.9%	13.2%	148	89	43	(60)	9	63	34
2034	1,150	2.3%	13.2%	152	91	44	(65)	11	59	29
2035	1,180	2.6%	13.2%	156	93	45	(71)	13	55	25

Enterprise Value Bridge

Sum of PV(FCFF)271

Terminal Value (Gordon Growth at 3.0%)972

PV of Terminal Value436

Enterprise Value707

(–) Net Debt257

Equity Value450

(÷) Shares Outstanding41

Fair Value per Share$10.88

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.2%	10.2%	13.2%	16.2%	19.2%
6.8%	$0	$10	$20	$30	$40
7.8%	$-1	$7	$15	$22	$30
8.8%	$-2	$4	$11	$17	$24
9.8%	$-3	$3	$8	$14	$19
10.8%	$-3	$2	$6	$11	$16

Current price: $11.83. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 43.7% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$59.10

Market Price

$11.83

Upside / Downside

+399.5%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Varex Imaging Corporation (VREX) has a fair value of $59.10 based on 7 comparable companies in the Medical - Devices industry.

EV/Revenue Valuation — Medical - Devices

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Varex Imaging CorporationVREX	490	0.9x	0.9x
Avanos Medical, Inc.AVNS	1,161	1.7x	1.8x
Cullinan Therapeutics, Inc.CGEM	894	44.0x	33.9x
Lexicon Pharmaceuticals, Inc.LXRX	847	17.6x	25.8x
CeriBell, Inc.CBLL	765	8.4x	11.6x
Cytek Biosciences, Inc.CTKB	593	2.6x	2.7x
Orthofix Medical Inc.OFIX	471	0.8x	0.7x
Standard BioTools Inc.LAB	398	3.6x	1.8x
Industry Median		3.6x	2.7x
(*) Revenue		845	872
= Enterprise Value		3,076	2,331
(-) Net Debt		257	257
Equity Value		2,819	2,074
(/) Outstanding shares		41	41
Fair Price		$68	$50

Selected Fair Value (avg of trailing + forward)

$59.10

+399.5%