Latest Ratios: P/E Ratio -6.1x · EV/EBITDA N/A · ROE -13.6%. (2014–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $433M | $494M | $486M | $945M | $879M | $1.1B | $494M | $1.1B | $1.1B | $1.3B | — |
| Enterprise Value | $690M | $751M | $788M | $1.3B | $1.2B | $1.5B | $877M | $1.5B | $1.4B | $1.7B | — |
| P/E Ratio → | -6.05 | — | — | 19.57 | 28.96 | 65.58 | — | 71.35 | 39.81 | 24.88 | — |
| P/S Ratio | 0.51 | 0.59 | 0.60 | 1.06 | 1.02 | 1.39 | 0.67 | 1.41 | 1.42 | 1.84 | — |
| P/B Ratio | 0.88 | 1.02 | 0.89 | 1.63 | 1.61 | 2.29 | 1.06 | 2.40 | 2.50 | 3.30 | — |
| P/FCF | 23.04 | 26.29 | 23.84 | 10.78 | — | 14.66 | — | 21.14 | 16.96 | 23.38 | — |
| P/OCF | 10.39 | 11.85 | 10.28 | 8.72 | 52.04 | 12.27 | 37.39 | 15.32 | 12.90 | 17.10 | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.89 | 0.97 | 1.41 | 1.43 | 1.77 | 1.19 | 1.88 | 1.86 | 2.42 | — |
| EV / EBITDA | — | — | 12.47 | 11.44 | 10.07 | 13.03 | 151.28 | 30.95 | 16.59 | 15.18 | — |
| EV / EBIT | — | — | 24.78 | 20.53 | 15.16 | 21.60 | — | 34.43 | 30.35 | 19.36 | — |
| EV / FCF | — | 39.96 | 38.63 | 14.39 | — | 18.73 | — | 28.15 | 22.16 | 30.66 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 34.4% | 34.4% | 31.7% | 32.5% | 33.0% | 33.2% | 25.8% | 32.9% | 32.8% | 36.3% | 40.1% |
| Operating Margin | -3.3% | -3.3% | 4.0% | 8.6% | 10.3% | 9.1% | -4.6% | 1.1% | 5.8% | 12.0% | 17.6% |
| Net Profit Margin | -8.3% | -8.3% | -5.9% | 5.3% | 3.5% | 2.1% | -7.8% | 2.0% | 3.6% | 7.4% | 11.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -13.6% | -13.6% | -8.4% | 8.4% | 5.8% | 3.6% | -12.5% | 3.4% | 6.6% | 11.1% | 13.3% |
| ROA | -6.0% | -6.0% | -3.9% | 3.9% | 2.6% | 1.5% | -5.3% | 1.5% | 2.7% | 6.2% | 11.4% |
| ROIC | -2.6% | -2.6% | 2.8% | 6.5% | 7.8% | 6.7% | -3.0% | 0.8% | 4.3% | 9.7% | 16.8% |
| ROCE | -2.9% | -2.9% | 3.0% | 7.3% | 8.9% | 7.6% | -3.7% | 1.0% | 5.2% | 11.7% | 20.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.83 | 0.83 | 0.86 | 0.81 | 0.80 | 0.93 | 1.04 | 0.86 | 0.89 | 1.24 | — |
| Debt / EBITDA | — | — | 7.44 | 4.26 | 3.58 | 4.12 | 83.53 | 8.34 | 4.50 | 4.36 | — |
| Net Debt / Equity | — | 0.53 | 0.55 | 0.55 | 0.63 | 0.63 | 0.82 | 0.79 | 0.77 | 1.03 | -0.07 |
| Net Debt / EBITDA | — | — | 4.77 | 2.88 | 2.85 | 2.83 | 66.19 | 7.70 | 3.90 | 3.61 | -0.29 |
| Debt / FCF | — | 13.66 | 14.79 | 3.62 | — | 4.06 | — | 7.01 | 5.21 | 7.28 | -0.81 |
| Interest Coverage | -0.67 | -0.67 | 1.02 | 2.10 | 1.97 | 1.55 | -1.54 | 2.02 | 2.18 | 7.08 | 57.42 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.43 | 3.43 | 3.32 | 4.04 | 3.52 | 3.33 | 3.25 | 2.51 | 3.00 | 3.26 | 4.63 |
| Quick Ratio | 1.83 | 1.83 | 1.97 | 2.34 | 1.77 | 1.98 | 1.56 | 1.09 | 1.46 | 1.72 | 2.09 |
| Cash Ratio | 0.83 | 0.83 | 1.02 | 1.19 | 0.52 | 0.87 | 0.63 | 0.17 | 0.34 | 0.55 | 0.47 |
| Asset Turnover | — | 0.76 | 0.67 | 0.71 | 0.73 | 0.71 | 0.65 | 0.75 | 0.78 | 0.67 | 1.00 |
| Inventory Turnover | 1.85 | 1.85 | 2.09 | 2.17 | 1.90 | 2.43 | 2.02 | 2.09 | 2.21 | 1.90 | 1.88 |
| Days Sales Outstanding | — | 68.02 | 70.97 | 67.13 | 73.60 | 69.29 | 61.20 | 65.93 | 72.68 | 85.54 | 71.93 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | 5.1% | 3.5% | 1.5% | — | 1.4% | 2.5% | 4.0% | — |
| FCF Yield | 4.3% | 3.8% | 4.2% | 9.3% | — | 6.8% | — | 4.7% | 5.9% | 4.3% | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — |
| Shares Outstanding | — | $41M | $41M | $50M | $42M | $40M | $39M | $39M | $38M | $38M | $38M |
Geopolitical and competitive margin pressure
Based on current market data, Varex trades at a forward P/E of 11.35, which appears to reflect a significant component discount compared to higher-multiple system integrators, suggesting that investors remain skeptical of the firm's ability to achieve sustainable margin expansion amidst intensifying global competition and geopolitical headwinds.
The negative TTM P/E ratio underscores the volatility in recent earnings, making forward-looking multiples the primary, albeit speculative, basis for valuation. This pricing suggests the market is discounting the company's long-term growth potential, likely due to the persistent threat of Chinese domestic manufacturers eroding the firm's core CT tube market share.
As reported in financial statements, Varex's ROIC has struggled to maintain momentum, hovering near 1.4% in 2026Q2, which indicates that the company is currently failing to generate returns that meaningfully exceed its cost of capital, thereby limiting its ability to compound value for shareholders over the long term.
The low ROIC trend suggests that the high-fixed-cost manufacturing model is not currently optimized for the prevailing revenue environment. Investors should monitor whether management can improve asset utilization or if the current return profile represents a structural ceiling for this specific medical component business model.
According to recent SEC filings, Varex's cash conversion cycle remains elevated at 221 days in 2026Q2, a figure that highlights significant inefficiencies in managing inventory and receivables compared to historical norms, which directly constrains the company's ability to convert operational activity into consistent, free cash flow.
The persistent DIO (Days Inventory Outstanding) of 214 days suggests that the company may be holding excessive stock, potentially to mitigate supply chain risks or as a result of lumpy OEM demand. This working capital intensity warrants further investigation into whether these inventory levels are strategic buffers or signs of product obsolescence.
Based on reported figures, Varex's interest coverage ratio has fluctuated significantly, dropping to 0.83 in 2026Q2, which indicates that the company's ability to service its debt obligations is becoming increasingly sensitive to quarterly earnings volatility and the ongoing pressure on operating margins within the medical segment.
While the debt-to-equity ratio of 0.78 appears manageable in isolation, the declining interest coverage suggests that the margin of safety is narrowing. Investors should be cautious, as any further deterioration in operating income could force the company to rely more heavily on its dwindling cash reserves to meet debt service requirements.
The most commonly misapplied metric for Varex is the P/E ratio, which obscures the company's true earning power by failing to account for the lumpy nature of OEM stocking orders and the significant impact of non-recurring restructuring charges on GAAP net income figures reported in recent filings.
Analysts should instead focus on EV/EBITDA or free cash flow yield to better understand the underlying cash-generating capacity of the business. Relying on P/E in a period of negative net margins provides a distorted view of the company's valuation and fails to capture the value of its installed base.
Includes 30+ ratios · 12 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying VREX stock.
Varex Imaging Corporation's current P/E ratio is -6.1x. The historical average is 41.7x.
Varex Imaging Corporation's return on equity (ROE) is -13.6%. The historical average is 5.6%.
Based on historical data, Varex Imaging Corporation is trading at a P/E of -6.1x. Compare with industry peers and growth rates for a complete picture.
Varex Imaging Corporation has 34.4% gross margin and -3.3% operating margin.