Intrinsic value of Varian Medical Systems - VAR

Previous Close

$104.58

  Intrinsic Value

premium content

  Rating & Target

premium content

  Value-price divergence*

premium content

Previous close

$104.58

 
Intrinsic value premium content
 
Up/down potential premium content
 
Rating premium content
 
Value-price divergence* premium content

Premium access subscription - $499/yr

please register and log in before paying

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of VAR stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 9.7

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  3.84
  3.80
  3.92
  4.03
  4.13
  4.21
  4.29
  4.36
  4.43
  4.48
  4.54
  4.58
  4.62
  4.66
  4.69
  4.73
  4.75
  4.78
  4.80
  4.82
  4.84
  4.85
  4.87
  4.88
  4.89
  4.90
  4.91
  4.92
  4.93
  4.94
  4.94
Revenue, $m
  3,218
  3,340
  3,471
  3,611
  3,760
  3,918
  4,087
  4,265
  4,454
  4,653
  4,864
  5,087
  5,322
  5,570
  5,832
  6,108
  6,398
  6,704
  7,025
  7,364
  7,720
  8,095
  8,489
  8,903
  9,339
  9,797
  10,279
  10,785
  11,316
  11,875
  12,462
Variable operating expenses, $m
 
  2,749
  2,857
  2,972
  3,094
  3,225
  3,363
  3,510
  3,665
  3,830
  4,003
  4,187
  4,380
  4,584
  4,800
  5,027
  5,265
  5,517
  5,782
  6,060
  6,354
  6,662
  6,986
  7,328
  7,686
  8,063
  8,459
  8,876
  9,313
  9,773
  10,256
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  2,667
  2,749
  2,857
  2,972
  3,094
  3,225
  3,363
  3,510
  3,665
  3,830
  4,003
  4,187
  4,380
  4,584
  4,800
  5,027
  5,265
  5,517
  5,782
  6,060
  6,354
  6,662
  6,986
  7,328
  7,686
  8,063
  8,459
  8,876
  9,313
  9,773
  10,256
Operating income, $m
  551
  591
  614
  639
  666
  694
  723
  755
  788
  824
  861
  900
  942
  986
  1,032
  1,081
  1,132
  1,187
  1,243
  1,303
  1,366
  1,433
  1,503
  1,576
  1,653
  1,734
  1,819
  1,909
  2,003
  2,102
  2,206
EBITDA, $m
  631
  658
  684
  711
  741
  772
  805
  840
  877
  917
  958
  1,002
  1,049
  1,097
  1,149
  1,203
  1,260
  1,321
  1,384
  1,451
  1,521
  1,595
  1,672
  1,754
  1,840
  1,930
  2,025
  2,125
  2,229
  2,339
  2,455
Interest expense (income), $m
  11
  0
  -1
  -1
  -2
  -2
  -3
  -4
  -4
  -5
  -6
  -7
  -8
  -9
  -10
  -11
  -12
  -13
  -14
  -16
  -17
  -19
  -20
  -22
  -24
  -25
  -27
  -29
  -31
  -34
  -36
Earnings before tax, $m
  556
  591
  615
  640
  667
  696
  726
  758
  793
  829
  867
  907
  950
  995
  1,042
  1,092
  1,144
  1,200
  1,258
  1,319
  1,384
  1,451
  1,523
  1,598
  1,677
  1,759
  1,847
  1,938
  2,034
  2,135
  2,242
Tax expense, $m
  153
  160
  166
  173
  180
  188
  196
  205
  214
  224
  234
  245
  256
  269
  281
  295
  309
  324
  340
  356
  374
  392
  411
  431
  453
  475
  499
  523
  549
  577
  605
Net income, $m
  402
  432
  449
  467
  487
  508
  530
  554
  579
  605
  633
  662
  693
  726
  761
  797
  835
  876
  918
  963
  1,010
  1,060
  1,112
  1,166
  1,224
  1,284
  1,348
  1,415
  1,485
  1,559
  1,636

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  939
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  3,816
  -975
  -1,013
  -1,054
  -1,097
  -1,143
  -1,192
  -1,244
  -1,300
  -1,358
  -1,419
  -1,484
  -1,553
  -1,625
  -1,702
  -1,782
  -1,867
  -1,956
  -2,050
  -2,149
  -2,253
  -2,362
  -2,477
  -2,598
  -2,725
  -2,859
  -2,999
  -3,147
  -3,302
  -3,465
  -3,636
Adjusted assets (=assets-cash), $m
  2,877
  -975
  -1,013
  -1,054
  -1,097
  -1,143
  -1,192
  -1,244
  -1,300
  -1,358
  -1,419
  -1,484
  -1,553
  -1,625
  -1,702
  -1,782
  -1,867
  -1,956
  -2,050
  -2,149
  -2,253
  -2,362
  -2,477
  -2,598
  -2,725
  -2,859
  -2,999
  -3,147
  -3,302
  -3,465
  -3,636
Revenue / Adjusted assets
  1.119
  -3.426
  -3.426
  -3.426
  -3.428
  -3.428
  -3.429
  -3.428
  -3.426
  -3.426
  -3.428
  -3.428
  -3.427
  -3.428
  -3.427
  -3.428
  -3.427
  -3.427
  -3.427
  -3.427
  -3.427
  -3.427
  -3.427
  -3.427
  -3.427
  -3.427
  -3.427
  -3.427
  -3.427
  -3.427
  -3.427
Average production assets, $m
  591
  615
  639
  664
  692
  721
  752
  785
  819
  856
  895
  936
  979
  1,025
  1,073
  1,124
  1,177
  1,233
  1,293
  1,355
  1,421
  1,489
  1,562
  1,638
  1,718
  1,803
  1,891
  1,984
  2,082
  2,185
  2,293
Working capital, $m
  1,002
  -581
  -604
  -628
  -654
  -682
  -711
  -742
  -775
  -810
  -846
  -885
  -926
  -969
  -1,015
  -1,063
  -1,113
  -1,166
  -1,222
  -1,281
  -1,343
  -1,409
  -1,477
  -1,549
  -1,625
  -1,705
  -1,788
  -1,877
  -1,969
  -2,066
  -2,168
Total debt, $m
  667
  -15
  -30
  -47
  -64
  -83
  -103
  -124
  -146
  -170
  -195
  -221
  -249
  -278
  -309
  -342
  -376
  -412
  -450
  -490
  -532
  -577
  -623
  -672
  -724
  -778
  -835
  -895
  -957
  -1,023
  -1,093
Total liabilities, $m
  2,076
  -395
  -410
  -427
  -444
  -463
  -483
  -504
  -526
  -550
  -575
  -601
  -629
  -658
  -689
  -722
  -756
  -792
  -830
  -870
  -912
  -957
  -1,003
  -1,052
  -1,104
  -1,158
  -1,215
  -1,275
  -1,337
  -1,403
  -1,473
Total equity, $m
  1,741
  -580
  -603
  -627
  -653
  -680
  -710
  -740
  -773
  -808
  -845
  -883
  -924
  -967
  -1,013
  -1,060
  -1,111
  -1,164
  -1,220
  -1,279
  -1,340
  -1,405
  -1,474
  -1,546
  -1,621
  -1,701
  -1,785
  -1,872
  -1,965
  -2,062
  -2,164
Total liabilities and equity, $m
  3,817
  -975
  -1,013
  -1,054
  -1,097
  -1,143
  -1,193
  -1,244
  -1,299
  -1,358
  -1,420
  -1,484
  -1,553
  -1,625
  -1,702
  -1,782
  -1,867
  -1,956
  -2,050
  -2,149
  -2,252
  -2,362
  -2,477
  -2,598
  -2,725
  -2,859
  -3,000
  -3,147
  -3,302
  -3,465
  -3,637
Debt-to-equity ratio
  0.383
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
Adjusted equity ratio
  0.393
  0.595
  0.595
  0.595
  0.595
  0.595
  0.595
  0.595
  0.595
  0.595
  0.595
  0.595
  0.595
  0.595
  0.595
  0.595
  0.595
  0.595
  0.595
  0.595
  0.595
  0.595
  0.595
  0.595
  0.595
  0.595
  0.595
  0.595
  0.595
  0.595
  0.595

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  402
  432
  449
  467
  487
  508
  530
  554
  579
  605
  633
  662
  693
  726
  761
  797
  835
  876
  918
  963
  1,010
  1,060
  1,112
  1,166
  1,224
  1,284
  1,348
  1,415
  1,485
  1,559
  1,636
Depreciation, amort., depletion, $m
  80
  67
  69
  72
  75
  78
  82
  85
  89
  93
  97
  102
  106
  111
  117
  122
  128
  134
  141
  147
  154
  162
  170
  178
  187
  196
  206
  216
  226
  237
  249
Funds from operations, $m
  198
  498
  518
  540
  562
  586
  612
  639
  668
  698
  730
  764
  800
  838
  877
  919
  963
  1,010
  1,059
  1,110
  1,164
  1,221
  1,281
  1,344
  1,411
  1,480
  1,554
  1,630
  1,711
  1,796
  1,886
Change in working capital, $m
  -158
  -21
  -23
  -24
  -26
  -28
  -29
  -31
  -33
  -35
  -37
  -39
  -41
  -43
  -46
  -48
  -51
  -53
  -56
  -59
  -62
  -65
  -69
  -72
  -76
  -80
  -84
  -88
  -93
  -97
  -102
Cash from operations, $m
  356
  707
  541
  564
  588
  614
  641
  670
  701
  733
  767
  803
  841
  881
  923
  967
  1,014
  1,063
  1,115
  1,169
  1,226
  1,287
  1,350
  1,417
  1,486
  1,560
  1,637
  1,719
  1,804
  1,894
  1,988
Maintenance CAPEX, $m
  0
  -64
  -67
  -69
  -72
  -75
  -78
  -82
  -85
  -89
  -93
  -97
  -102
  -106
  -111
  -117
  -122
  -128
  -134
  -141
  -147
  -154
  -162
  -170
  -178
  -187
  -196
  -206
  -216
  -226
  -237
New CAPEX, $m
  -80
  -24
  -24
  -26
  -27
  -29
  -31
  -33
  -35
  -37
  -39
  -41
  -43
  -46
  -48
  -51
  -53
  -56
  -59
  -62
  -66
  -69
  -73
  -76
  -80
  -84
  -89
  -93
  -98
  -103
  -108
Cash from investing activities, $m
  -109
  -88
  -91
  -95
  -99
  -104
  -109
  -115
  -120
  -126
  -132
  -138
  -145
  -152
  -159
  -168
  -175
  -184
  -193
  -203
  -213
  -223
  -235
  -246
  -258
  -271
  -285
  -299
  -314
  -329
  -345
Free cash flow, $m
  247
  619
  450
  469
  489
  510
  532
  555
  581
  607
  635
  665
  696
  729
  763
  800
  838
  879
  921
  966
  1,014
  1,063
  1,116
  1,170
  1,228
  1,289
  1,353
  1,420
  1,490
  1,564
  1,642
Issuance/(repayment) of debt, $m
  167
  -15
  -15
  -17
  -18
  -19
  -20
  -21
  -22
  -24
  -25
  -26
  -28
  -29
  -31
  -33
  -34
  -36
  -38
  -40
  -42
  -44
  -47
  -49
  -51
  -54
  -57
  -60
  -63
  -66
  -69
Issuance/(repurchase) of shares, $m
  -401
  -21
  -23
  -24
  -26
  -28
  -29
  -31
  -33
  -35
  -37
  -39
  -41
  -43
  -45
  -48
  -50
  -53
  -56
  -59
  -62
  -65
  -68
  -72
  -76
  -80
  -84
  -88
  -92
  -97
  -102
Cash from financing (excl. dividends), $m  
  -246
  -36
  -38
  -41
  -44
  -47
  -49
  -52
  -55
  -59
  -62
  -65
  -69
  -72
  -76
  -81
  -84
  -89
  -94
  -99
  -104
  -109
  -115
  -121
  -127
  -134
  -141
  -148
  -155
  -163
  -171
Total cash flow (excl. dividends), $m
  -2
  604
  435
  452
  471
  491
  512
  534
  558
  583
  610
  638
  668
  699
  732
  767
  804
  843
  883
  926
  972
  1,019
  1,069
  1,122
  1,177
  1,235
  1,296
  1,360
  1,428
  1,498
  1,573
Retained Cash Flow (-), $m
  -29
  21
  23
  24
  26
  28
  29
  31
  33
  35
  37
  39
  41
  43
  45
  48
  50
  53
  56
  59
  62
  65
  68
  72
  76
  80
  84
  88
  92
  97
  102
Prev. year cash balance distribution, $m
 
  559
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  1,184
  457
  477
  497
  518
  541
  565
  591
  618
  647
  677
  709
  742
  778
  815
  854
  896
  939
  985
  1,033
  1,084
  1,137
  1,193
  1,252
  1,314
  1,379
  1,448
  1,520
  1,595
  1,675
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  1,135
  419
  415
  409
  402
  393
  382
  369
  355
  339
  321
  302
  282
  261
  239
  217
  195
  173
  152
  131
  112
  94
  78
  64
  51
  40
  31
  24
  17
  13
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Varian Medical Systems, Inc. designs, manufactures, sells, and services medical devices and software products for treating cancer and other medical conditions worldwide. It operates through two segments, Oncology Systems and Imaging Components. The Oncology Systems segment provides hardware and software products for treating cancer with radiotherapy, fixed field intensity-modulated radiation therapy, image-guided radiation therapy, volumetric modulated arc therapy, stereotactic radiosurgery, stereotactic body radiotherapy, and brachytherapy. Its products include linear accelerators, brachytherapy afterloaders, treatment simulation, verification equipment, and accessories; and information management, treatment planning, image processing, clinical knowledge exchange, patient care management, decision-making support, and practice management software. This segment serves university research and community hospitals, private and governmental institutions, healthcare agencies, physiciansÂ’ offices, oncology practices, radiotherapy centers, and cancer care clinics. The Imaging Components segment offers X-ray imaging components for use in radiographic or fluoroscopic imaging, mammography, special procedures, computed tomography, computer aided diagnostics, and industrial applications. It also provides Linatron X-ray accelerators, imaging processing software, and image detection products for security and inspection purposes. This segment serves original equipment manufacturers, independent service companies, and end-users. In addition, the company offers products and systems for delivering proton therapy; and develops technologies in the areas of digital X-ray imaging, volumetric and functional imaging, and improved X-ray sources. The company was formerly known as Varian Associates, Inc. and changed its name to Varian Medical Systems, Inc. in April 1999. Varian Medical Systems, Inc. was founded in 1948 and is headquartered in Palo Alto, California.

FINANCIAL RATIOS  of  Varian Medical Systems (VAR)

Valuation Ratios
P/E Ratio 24.4
Price to Sales 3
Price to Book 5.6
Price to Tangible Book
Price to Cash Flow 27.5
Price to Free Cash Flow 35.5
Growth Rates
Sales Growth Rate 3.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -12.1%
Cap. Spend. - 3 Yr. Gr. Rate 1%
Financial Strength
Quick Ratio 2
Current Ratio 0
LT Debt to Equity 16.5%
Total Debt to Equity 38.3%
Interest Coverage 52
Management Effectiveness
Return On Assets 11.1%
Ret/ On Assets - 3 Yr. Avg. 11.7%
Return On Total Capital 17.4%
Ret/ On T. Cap. - 3 Yr. Avg. 18.5%
Return On Equity 23.3%
Return On Equity - 3 Yr. Avg. 24.1%
Asset Turnover 0.9
Profitability Ratios
Gross Margin 42.3%
Gross Margin - 3 Yr. Avg. 42.1%
EBITDA Margin 20.1%
EBITDA Margin - 3 Yr. Avg. 20.5%
Operating Margin 17.1%
Oper. Margin - 3 Yr. Avg. 17.9%
Pre-Tax Margin 17.3%
Pre-Tax Margin - 3 Yr. Avg. 18%
Net Profit Margin 12.5%
Net Profit Margin - 3 Yr. Avg. 13%
Effective Tax Rate 27.5%
Eff/ Tax Rate - 3 Yr. Avg. 27.7%
Payout Ratio 0%

VAR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the VAR stock intrinsic value calculation we used $3218 million for the last fiscal year's total revenue generated by Varian Medical Systems. The default revenue input number comes from 2016 income statement of Varian Medical Systems. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our VAR stock valuation model: a) initial revenue growth rate of 3.8% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for VAR is calculated based on our internal credit rating of Varian Medical Systems, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Varian Medical Systems.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of VAR stock the variable cost ratio is equal to 82.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for VAR stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Varian Medical Systems.

Corporate tax rate of 27% is the nominal tax rate for Varian Medical Systems. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the VAR stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for VAR are equal to 18.4%.

Life of production assets of 9.2 years is the average useful life of capital assets used in Varian Medical Systems operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for VAR is equal to -17.4%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $0 million for Varian Medical Systems - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 93.067 million for Varian Medical Systems is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Varian Medical Systems at the current share price and the inputted number of shares is $9.7 billion.


Premium access subscription - $499/yr

please register and log in before paying
RELATED COMPANIES Price Int.Val. Rating
ARAY Accuray 4.50 prem.  prem.
ICAD icad 4.14 prem.  prem.
ISR IsoRay 0.590 prem.  prem.
SRTS Sensus Healthc 4.19 prem.  prem.
PKI PerkinElmer 67.80 prem.  prem.
HOLX Hologic 46.49 prem.  prem.

COMPANY NEWS

▶ VARs Latest Analyst Recommendations after Its 2Q17 Results   [May-01-17 09:09AM  Market Realist]
▶ Varian beats Street 2Q forecasts   [Apr-26-17 04:30PM  Associated Press]
▶ Varian Medical Systems Names New CFO   [Apr-05-17 08:30AM  PR Newswire]
▶ CIO Dedicated to Gender Diversity on Boards Lands a Seat of Her Own   [Mar-17-17 05:30PM  The Wall Street Journal]
▶ [$$] Cancer Test Makers Raise Nearly $1 Billion   [10:04AM  at The Wall Street Journal]
▶ The Hot Stock: Varex Imaging Jumps 7.3%   [Jan-30-17 04:57PM  at Barrons.com]
▶ Varian Medical Systems Publishes 2016 Annual Report   [Jan-04-17 08:15AM  PR Newswire]
Stock chart of VAR Financial statements of VAR Annual reports of VAR
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.