Vertex Pharmaceuticals Incorporated

BIT:1VRTX Stock Report

Market Cap: €108.6b

Vertex Pharmaceuticals Valuation

Is 1VRTX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

What is the Fair Price of 1VRTX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: 1VRTX (€414.45) is trading below our estimate of future cash flow value (€670.05)

Significantly Below Future Cash Flow Value: 1VRTX is trading below future cash flow value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1VRTX?

Key metric: As 1VRTX is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1VRTX. This is calculated by dividing 1VRTX's market cap by their current earnings.
What is 1VRTX's PE Ratio?
PE Ratio30.7x
EarningsUS$3.95b
Market CapUS$125.08b

Price to Earnings Ratio vs Peers

How does 1VRTX's PE Ratio compare to its peers?

The above table shows the PE ratio for 1VRTX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21x
PHIL Philogen
19.9x-78.55%€914.0m
REGN Regeneron Pharmaceuticals
17x11.21%US$79.5b
GILD Gilead Sciences
21.2x8.28%US$181.2b
AMGN Amgen
25.7x8.52%US$203.6b
1VRTX Vertex Pharmaceuticals
30.7x13.66%€125.1b

Price-To-Earnings vs Peers: 1VRTX is expensive based on its Price-To-Earnings Ratio (30.7x) compared to the peer average (21x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does 1VRTX's PE Ratio compare vs other companies in the European Biotechs Industry?

8 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1VRTX 30.7xIndustry Avg. 16.1xNo. of Companies8PE020406080100+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1VRTX is expensive based on its Price-To-Earnings Ratio (30.7x) compared to the European Biotechs industry average (16.1x).

Price to Earnings Ratio vs Fair Ratio

What is 1VRTX'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.

1VRTX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio30.7x
Fair PE Ratio51.5x

Price-To-Earnings vs Fair Ratio: 1VRTX is good value based on its Price-To-Earnings Ratio (30.7x) compared to the estimated Fair Price-To-Earnings Ratio (51.5x).

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 1VRTX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€414.45
€471.26
+13.71%
12.61%€553.76€285.09n/a28
Mar ’27€417.00
€451.58
+8.29%
12.13%€529.56€279.61n/a27
Feb ’27€395.95
€433.67
+9.53%
13.30%€527.00€278.26n/a25
Jan ’27€388.10
€417.59
+7.60%
13.79%€512.74€280.14n/a24
Dec ’26€368.75
€415.40
+12.65%
13.54%€520.29€284.26n/a25
Nov ’26€366.55
€412.85
+12.63%
13.66%€517.74€283.34n/a25
Oct ’26€346.75
€409.78
+18.18%
13.88%€533.21€281.99n/a25
Sep ’26€335.60
€411.24
+22.54%
13.89%€533.46€282.12n/a25
Aug ’26€397.80
€436.28
+9.67%
13.24%€536.30€284.99n/a27
Jul ’26€384.60
€423.99
+10.24%
14.20%€526.73€279.91n/a28
Jun ’26€389.80
€440.51
+13.01%
14.15%€546.98€290.66n/a28
May ’26€445.80
€437.93
-1.76%
13.93%€540.06€288.85n/a29
Apr ’26€452.90
€461.45
+1.89%
13.88%€570.04€305.88n/a29
Mar ’26€457.65
€478.64
+4.59%
13.75%€591.20€317.23€417.0030
Feb ’26€449.25
€474.03
+5.52%
14.04%€570.14€318.35€395.9530
Jan ’26€388.00
€474.31
+22.24%
14.21%€578.46€312.29€388.1030
Dec ’25€445.00
€489.82
+10.07%
12.57%€568.89€307.13€368.7530
Nov ’25€433.85
€470.45
+8.44%
13.12%€554.88€300.56€366.5531
Oct ’25€419.85
€459.14
+9.36%
13.48%€542.04€293.61€346.7529
Sep ’25€446.45
€467.10
+4.62%
13.70%€549.72€297.77€335.6029
Aug ’25€469.15
€447.66
-4.58%
12.69%€544.83€300.63€397.8030
Jul ’25€442.15
€437.55
-1.04%
12.75%€539.15€303.68€384.6029
Jun ’25€414.30
€427.28
+3.13%
12.46%€531.88€299.59€389.8028
May ’25€369.15
€428.55
+16.09%
12.18%€535.08€302.97€445.8029
Apr ’25€388.00
€425.41
+9.64%
12.35%€529.57€299.85€452.9029
Mar ’25€396.45
€425.42
+7.31%
12.62%€532.92€299.65€457.6528
€472.85
Fair Value
12.4% undervalued intrinsic discount
28
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 Analysis2026/03/12 09:45
End of Day Share Price 2026/03/12 00:00
Earnings2025/12/31
Annual Earnings2025/12/31

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 57 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
Ying HuangBarclays