2 models fit Varex Imaging Corporation Common Stock and they agree: 2 of 2 land within 15% of the average. The price is below every model.
Two or more of our models back this value.
Large discount(i)Silver79
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, and Dividend discount.
ACCE opinionVarex Imaging Corporation Common Stock (VREX)
Fair value (2 models)
$24.15
ACCE price target
$19.50
Rating
Undervalued
Horizon
12 months
Fair value published on 18 Oct 2026, 16:04 CEST; previously $15.18 since 14 Oct 2026, 00:00 CEST.
ACCE price target published on 13 Oct 2026, 00:00 CEST.
Rating published on 18 Oct 2026, 16:04 CEST.
Price used: $18.42 at the close on 23 Oct 2026, 22:00 CEST.
Models: P/E comparison and Dividend discount.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
23.7% below
+31.1% to fair value
ACCE score
66
out of 100
Analysts
0% buy
3 covering
P/E
34.8x
forward 17.2x
1-year return
+55.1%
Dividend yield
0.00%
Varex Imaging Corporation Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Varex Imaging makes the X-ray tubes and flat-panel detectors that sit inside medical and industrial imaging systems, selling mostly to OEMs such as GE HealthCare, Siemens Healthineers and Canon rather than to hospitals directly. That OEM dependence cuts both ways: switching costs are real once a tube is qualified into a scanner platform, but the company has little pricing power over its largest customers. Revenue growth of 3.7% is modest, and the 10.8% operating margin against a 34.3% gross margin shows that most of the gross profit is consumed below the line. The more interesting question is whether the stock's 20.3x forward earnings multiple, against a trailing 34.8x, already reflects a margin recovery that management must deliver. With a 4.6% ROE and no index membership at a $784M market cap, the name is under-owned, so a deeper look should focus on the operating margin trajectory and the mix of higher-value detector sales.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
moderate
Thin free cash flow
FCF of $19M on a $781M market cap is a low cash yield, and debt/equity of 0.85 leaves little room if margins slip further.
moderate
Revenue growth slowing
Revenue grew 3.7% year over year and fell 2.5% quarter over quarter, against a 5-year CAGR of 2.7%. Earnings growth of 453% comes off a depressed base and flatters the picture.
moderate
Insider selling without buys
Insiders sold $2.65M across the last 10 disclosed transactions and bought nothing, with insiders holding only 1.7% of the shares.
AI research notes
AI-assisted·How I use AIWritten Oct 22, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 3.7% over the last year, ahead of its 2.7% average annual pace across the past five years.
Consensus model fair value of $24.15 sits 23.7% above the share price, and the 2 of 3 valuation models in that consensus agree with the upside.
The latest quarter beat expectations, with earnings per share of 0.31 against 0.22 expected, a surprise of 40.9%.
Why it could disappoint
Return on invested capital is negative at -6.6%, so the business is currently destroying value on the capital it uses.
Free cash flow of only $19M over the last twelve months is thin against debt to equity of 0.85, leaving little room to deleverage.
The trailing P/E of 34.7x is well above the sector median forward P/E of 24.3x, and none of the 3 analysts rate the stock Buy or Strong Buy.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 17, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where VREX's valuation models land
Price
$18.42
Model fair value
$24.15
Model range
$20.49 to $25.98
Fair value $24.15
Price $18.42
The price is below the whole model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
P/E comparison
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Quality
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