Vertex Pharmaceuticals Incorporated

XTRA:VX1 Stock Report

Market Cap: €108.6b

Vertex Pharmaceuticals Valuation

Is VX1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of VX1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€815.35
Fair Value
45.4% undervalued intrinsic discount
29
Number of Analysts

Below Fair Value: VX1 (€445.25) is trading below our estimate of fair value (€815.35)

Significantly Below Fair Value: VX1 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VX1?

Key metric: As VX1 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for VX1. This is calculated by dividing VX1's market cap by their current revenue.
What is VX1's PS Ratio?
PS Ratio10.6x
SalesUS$10.63b
Market CapUS$112.90b

Price to Sales Ratio vs Peers

How does VX1's PS Ratio compare to its peers?

The above table shows the PS ratio for VX1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average6.1x
BIO3 Biotest
1.6x3.6%€1.4b
FYB Formycon
15.6x24.6%€946.4m
MRK Merck KGaA
3x4.1%€63.7b
GILD Gilead Sciences
4.3x2.9%US$120.8b
VX1 Vertex Pharmaceuticals
10.6x8.5%€112.9b

Price-To-Sales vs Peers: VX1 is expensive based on its Price-To-Sales Ratio (10.6x) compared to the peer average (6.1x).

Price to Sales Ratio vs Industry

How does VX1's PS Ratio compare vs other companies in the DE Biotechs Industry?

5 CompaniesPrice / SalesEstimated GrowthMarket Cap
CNW co.don
0.7xn/aUS$6.97m
V9Z Aceragen
0.4xn/aUS$3.12m
PA8 Paion
0.2x30.2%US$2.78m
V9Z Aceragen
0.3x-161.8%US$2.18m
VX1 10.6xIndustry Avg. 8.4xNo. of Companies5PS0612182430+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: VX1 is expensive based on its Price-To-Sales Ratio (10.6x) compared to the European Biotechs industry average (8.6x).

Price to Sales Ratio vs Fair Ratio

What is VX1's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VX1 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio10.6x
Fair PS Ratio4.9x

Price-To-Sales vs Fair Ratio: VX1 is expensive based on its Price-To-Sales Ratio (10.6x) compared to the estimated Fair Price-To-Sales Ratio (4.9x).

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 VX1 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€445.25
€471.13
+5.8%
14.2%€568.31€317.33n/a29
Jan ’26€387.65
€474.31
+22.4%
14.2%€578.46€312.29n/a30
Dec ’25€444.35
€489.82
+10.2%
12.6%€568.89€307.13n/a30
Nov ’25€433.55
€470.45
+8.5%
13.1%€554.88€300.56n/a31
Oct ’25€420.75
€459.14
+9.1%
13.5%€542.04€293.61n/a29
Sep ’25€446.30
€467.10
+4.7%
13.7%€549.72€297.77n/a29
Aug ’25€469.55
€447.66
-4.7%
12.7%€544.83€300.63n/a30
Jul ’25€441.40
€437.55
-0.9%
12.8%€539.15€303.68n/a29
Jun ’25€407.00
€427.28
+5.0%
12.5%€531.88€299.59n/a28
May ’25€369.25
€428.55
+16.1%
12.2%€535.08€302.97n/a29
Apr ’25€387.00
€425.41
+9.9%
12.4%€529.57€299.85n/a29
Mar ’25€396.90
€425.42
+7.2%
12.6%€532.92€299.65n/a28
Feb ’25€399.60
€401.70
+0.5%
13.9%€514.28€288.88€445.2527
Jan ’25€371.20
€371.73
+0.1%
11.0%€454.00€285.11€387.6528
Dec ’24€326.90
€363.95
+11.3%
9.2%€419.20€288.66€444.3528
Nov ’24€347.50
€366.12
+5.4%
9.4%€431.51€297.14€433.5528
Oct ’24€332.50
€363.65
+9.4%
9.3%€431.33€297.01€420.7527
Sep ’24€326.40
€355.56
+8.9%
9.4%€421.94€290.54€446.3027
Aug ’24€318.95
€345.82
+8.4%
9.9%€415.19€278.61€469.5527
Jul ’24€321.65
€343.89
+6.9%
9.3%€417.88€280.42€441.4027
Jun ’24€298.40
€346.87
+16.2%
10.0%€425.04€284.29€407.0028
May ’24€309.75
€307.38
-0.8%
9.5%€400.15€255.22€369.2526
Apr ’24€287.90
€310.19
+7.7%
9.5%€408.50€259.95€387.0026
Mar ’24€272.75
€309.47
+13.5%
9.7%€409.64€260.68€396.9026
Feb ’24€300.50
€303.64
+1.0%
10.3%€405.64€258.13€399.6026
Analyst Price Target
Consensus Narrative from 29 Analysts
€497.59
Fair Value
10.5% undervalued intrinsic discount
29
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 Analysis2025/01/31 13:54
End of Day Share Price 2025/01/31 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

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 here.

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 .

Analyst Sources

Vertex Pharmaceuticals Incorporated is covered by 75 analysts. 31 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