Vertex Pharmaceuticals Incorporated (VRTX) Valuation — DCF, Graham & Comparables

Vertex Pharmaceuticals Incorporated (VRTX) — Price $503.50 — Healthcare — Biotechnology — NASDAQ

Latest reported results:

Valuation dashboard for Vertex Pharmaceuticals Incorporated (VRTX) with P/E 29.38, P/B 6.21, EV/EBITDA 23.59 and dividend yield 0.00%. DCF, Graham Number, EPS growth, peer multiples and dividend discount models plus sector comparison against other Healthcare companies.

Vertex Pharmaceuticals Incorporated is a leading biotechnology firm primarily focused on the discovery, advancement, and marketing of innovative treatments, particularly for cystic fibrosis (CF). The company offers a range of approved medications for CF patients, including SYMDEKO/SYMKEVI, ORKAMBI, and KALYDECO, which target specific mutations within the cystic fibrosis transmembrane conductance regulator gene.

Analysis Summary

Vertex Pharmaceuticals Incorporated reported revenue of $12.07B in the most recent fiscal year, growing at a 5-year CAGR of 14.2%. Net income reached $3.95B, with a 7.8% 5-year CAGR.

Trailing-twelve-month margins: gross margin 85.0%, operating margin 39.4%, net margin 32.7%.

At the current price of $503.50, VRTX trades at a P/E of 29.38 and an ROE of 21.18%. Market capitalisation stands at $127.8B, placing it among large-cap names.

Balance sheet quality for VRTX: current ratio of 2.9. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.

Valuation Ratios

P/E Ratio29.38
Price / Book6.21
EV / EBITDA23.59
Dividend Yield0.00%

Valuation Models

DCF Fair Value$311.69
vs Current Price-38.1%

Peer Comparison

SymbolCompanyMarket CapP/EP/BROE
VRTXVertex Pharmaceuticals Incorporated$128.1B29.386.2121.2%
REGNRegeneron Pharmaceuticals, Inc.$75.7B17.552.4014.4%
ARGXargenx SE$57.2B33.536.8421.7%
BMYBristol-Myers Squibb Company$124.9B13.475.5946.8%
GSKGSK plc$94.2B14.834.0528.3%
MDTMedtronic plc$110.6B21.282.209.7%
HCAHCA Healthcare, Inc.$92.4B14.28-112.9%
MCKMcKesson Corporation$105.6B24.04-219.2%

Price

Price$503.50
Market Cap$127.8B
ExchangeNASDAQ
CountryUS

Profitability

Return on Equity21.18%
Return on Invested Capital18.12%
Return on Assets15.12%
Gross Margin85.03%
Operating Margin39.43%
Net Margin32.74%

Related companies: ARGX · BMY · CVS · GSK · HCA · MCK · MDT

Explore sector: Healthcare · Biotechnology

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