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Is this Large Market Cap Stock target price reasonable for Varian Medical Systems, Inc. (NYSE:VAR)?

The company in question is, Varian Medical Systems, Inc. (NYSE:VAR) currently with a stock price of 96.08 (-0.21% today). The market cap for Varian Medical Systems, Inc. is 8977.15, and is in the sector Healthcare, and Medical Appliances & Equipment industry. The target price for Varian Medical Systems, Inc. is 93.95. Currently Varian Medical Systems, Inc. is trading with a P/E of 24.38, and a forward P/E of 19.31. Average volume for Varian Medical Systems, Inc. is 667.01 and so far today it is 321333.

Performance in the last year for Varian Medical Systems, Inc. has been 27.66%. For EPS growth, Varian Medical Systems, Inc. has seen a growth of 6.70%, and is looking to grow in the next year to 7.39%. More long term stats show that EPS growth has been 6.70% over the last five years and could be 11.30% for the next five years. Varian Medical Systems, Inc. has seen sales growth quarter over quarter at 0.70%, with EPS growth quarter over quarter at -8.40%. The 20-day simple moving average is -0.30%, with the 200-day simple moving average coming to 12.93%.

Since the IPO date for Varian Medical Systems, Inc. on the 01/05/1988, Varian Medical Systems, Inc. has seen performance year to date to be 19.16%. With Varian Medical Systems, Inc. trading at 96.08, the dividend yield is *TBA, and the EPS is 3.95.

So could Varian Medical Systems, Inc., be undervalued? Well as said before P/E is 24.38. The PEG is 2.16, P/S is 2.87 and the P/B is at 5.42. The P/cash is *TBA, with P/free cash flow at 34.21.

Varian Medical Systems, Inc. ability to deal with debt shows that the current ratio is 1.6, and the quick ratio is 1.2. This is with long term debt/equity at 0.18, and total debt/equity at 0.42.

In terms of margins, Varian Medical Systems, Inc. has a gross margin of 41.40%, an operating margin of 16.30% and a profit margin of 12.30%.Payout ratio for Varian Medical Systems, Inc. is 0.00%. Return on assets come to 10.30% with return on investment coming to 18.40%.

Insider ownership for Varian Medical Systems, Inc., is at 0.10% and institutional ownership comes to 98.80%. Outstanding shares are at 93.24. While shares float is 93.11. The float short is currently 8.13%, and short ratio is 11.35.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Mark Hines

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