Vertex Pharmaceuticals Incorporated

NasdaqGS:VRTX Stock Report

Market Cap: US$108.0b

Vertex Pharmaceuticals Valuation

Is VRTX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of VRTX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

US$713.04
Fair Value
40.9% undervalued intrinsic discount
25
Number of Analysts

Below Fair Value: VRTX ($414.86) is trading below our estimate of fair value ($710.25)

Significantly Below Fair Value: VRTX is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VRTX?

Key metric: As VRTX is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for VRTX. This is calculated by dividing VRTX's market cap by their current earnings.
What is VRTX's PE Ratio?
PE Ratio29.2x
EarningsUS$3.64b
Market CapUS$107.98b

Price to Earnings Ratio vs Peers

How does VRTX's PE Ratio compare to its peers?

The above table shows the PE ratio for VRTX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average42.4x
AMGN Amgen
24x9.69%US$158.6b
GILD Gilead Sciences
23x12.78%US$146.7b
REGN Regeneron Pharmaceuticals
13.3x8.51%US$58.5b
ABBV AbbVie
109.5x28.20%US$408.5b
VRTX Vertex Pharmaceuticals
29.2x13.42%US$108.0b

Price-To-Earnings vs Peers: VRTX is good value based on its Price-To-Earnings Ratio (29.2x) compared to the peer average (42.4x).

Price to Earnings Ratio vs Industry

How does VRTX's PE Ratio compare vs other companies in the US Biotechs Industry?

10 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AGIO Agios Pharmaceuticals
3.8x-20.89%US$2.48b
NVAX Novavax
3.3x-46.26%US$1.45b
EBS Emergent BioSolutions
3.8x-87.36%US$527.64m
CHRS Coherus Oncology
3.6x-12.78%US$204.56m
VRTX 29.2xIndustry Avg. 16.7xNo. of Companies10PE01632486480+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: VRTX is expensive based on its Price-To-Earnings Ratio (29.2x) compared to the US Biotechs industry average (16.7x).

Price to Earnings Ratio vs Fair Ratio

What is VRTX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VRTX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio29.2x
Fair PE Ratio27.1x

Price-To-Earnings vs Fair Ratio: VRTX is expensive based on its Price-To-Earnings Ratio (29.2x) compared to the estimated Fair Price-To-Earnings Ratio (27.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst VRTX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$414.86
US$481.80
+16.14%
13.99%US$624.00US$330.00n/a25
Oct ’26US$404.21
US$479.56
+18.64%
13.88%US$624.00US$330.00n/a25
Sep ’26US$391.02
US$481.04
+23.02%
13.89%US$624.00US$330.00n/a25
Aug ’26US$462.13
US$505.19
+9.32%
13.24%US$621.00US$330.00n/a27
Jul ’26US$452.16
US$499.87
+10.55%
14.20%US$621.00US$330.00n/a28
Jun ’26US$442.05
US$500.12
+13.14%
14.15%US$621.00US$330.00n/a28
May ’26US$498.86
US$500.32
+0.29%
13.93%US$617.00US$330.00n/a29
Apr ’26US$484.74
US$497.84
+2.70%
13.88%US$615.00US$330.00n/a29
Mar ’26US$479.79
US$497.91
+3.78%
13.75%US$615.00US$330.00n/a30
Feb ’26US$461.68
US$491.37
+6.43%
14.04%US$591.00US$330.00n/a30
Jan ’26US$402.70
US$493.61
+22.57%
14.21%US$602.00US$325.00n/a30
Dec ’25US$468.13
US$518.33
+10.72%
12.57%US$602.00US$325.00n/a30
Nov ’25US$471.12
US$508.70
+7.98%
13.12%US$600.00US$325.00n/a31
Oct ’25US$469.76
US$508.23
+8.19%
13.48%US$600.00US$325.00US$404.2129
Sep ’25US$495.89
US$509.82
+2.81%
13.70%US$600.00US$325.00US$391.0229
Aug ’25US$505.78
US$483.96
-4.31%
12.69%US$589.00US$325.00US$462.1330
Jul ’25US$471.25
US$468.27
-0.63%
12.75%US$577.00US$325.00US$452.1629
Jun ’25US$455.34
US$463.53
+1.80%
12.46%US$577.00US$325.00US$442.0528
May ’25US$402.14
US$459.72
+14.32%
12.18%US$574.00US$325.00US$498.8629
Apr ’25US$420.48
US$461.10
+9.66%
12.35%US$574.00US$325.00US$484.7429
Mar ’25US$432.76
US$461.41
+6.62%
12.62%US$578.00US$325.00US$479.7928
Feb ’25US$433.87
US$436.63
+0.64%
13.90%US$559.00US$314.00US$461.6827
Jan ’25US$406.89
US$409.39
+0.62%
10.98%US$500.00US$314.00US$402.7028
Dec ’24US$351.16
US$395.90
+12.74%
9.25%US$456.00US$314.00US$468.1328
Nov ’24US$369.33
US$386.90
+4.76%
9.44%US$456.00US$314.00US$471.1228
Oct ’24US$347.74
US$384.45
+10.56%
9.35%US$456.00US$314.00US$469.7627
US$481.8
Fair Value
12.6% undervalued intrinsic discount
25
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/10/09 21:44
End of Day Share Price 2025/10/09 00:00
Earnings2025/06/30
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Vertex Pharmaceuticals Incorporated is covered by 73 analysts. 30 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jasper HellwegArgus Research Company
Brian SkorneyBaird
Ishan MajumdarBaptista Research