VREX
Varex Imaging Corporation
$10.55
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 18.7% below fair value
You pay
$10.55
Bear
$10.38
Fair
$12.98
Bull
$15.58
Bear
$10.38
-1.6%
$0.84 × 12x P/E
Fair
$12.98
+23.0%
$0.84 × 15x P/E
Bull
$15.58
+47.6%
$0.84 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
12.6x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $14.50 from 6 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $12.98 per share.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples