An improved surgical device for cutting and removing venous valves is disclosed. The valve cutter is provided with a circular cutting head and a dilating segment affixed to a cable or wire. The circular cutting edge promotes engagement of the valve cusps and does not require orientation within the vein during surgery. A serrated or toothed cutting edge further promotes engagement of the valve leaflets and helps to prevent slippage of the valve leaflet pairs. The serrated cutting edge is tapered inward to prevent trauma to or tearing of the venous wall.