Vertex Pharmaceuticals Incorporated

NasdaqGS:VRTX Stock Report

Market Cap: US$115.4b

Vertex Pharmaceuticals Valuation

Is VRTX 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 VRTX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VRTX ($451.23) is trading below our estimate of fair value ($859.38)

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 unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for VRTX. This is calculated by dividing VRTX's market cap by their current revenue.
What is VRTX's PS Ratio?
PS Ratio10.9x
SalesUS$10.63b
Market CapUS$115.38b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for VRTX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.9x
GILD Gilead Sciences
3.9x2.4%US$109.2b
AMGN Amgen
4.8x2.5%US$150.5b
REGN Regeneron Pharmaceuticals
5.8x6.8%US$80.1b
ABBV AbbVie
5.3x6.0%US$294.4b
VRTX Vertex Pharmaceuticals
10.9x8.6%US$115.4b

Price-To-Sales vs Peers: VRTX is expensive based on its Price-To-Sales Ratio (10.9x) compared to the peer average (4.9x).

Price to Sales Ratio vs Industry

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

131 CompaniesPrice / SalesEstimated GrowthMarket Cap
GILD Gilead Sciences
3.9x2.4%US$109.25b
BIIB Biogen
2.4x1.3%US$22.65b
MRNA Moderna
2.8x7.2%US$14.35b
INCY Incyte
3.4x8.9%US$13.59b
VRTX 10.9xIndustry Avg. 10.1xNo. of Companies131PS01632486480+
131 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: VRTX is expensive based on its Price-To-Sales Ratio (10.9x) compared to the US Biotechs industry average (10.1x).

Price to Sales Ratio vs Fair Ratio

What is VRTX'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.

VRTX PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio10.9x
Fair PS Ratio8.8x

Price-To-Sales vs Fair Ratio: VRTX is expensive based on its Price-To-Sales Ratio (10.9x) compared to the estimated Fair Price-To-Sales Ratio (8.8x).

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$451.23
US$513.87
+13.9%
12.5%US$602.00US$325.00n/a32
Nov ’25US$471.12
US$508.70
+8.0%
13.1%US$600.00US$325.00n/a31
Oct ’25US$469.76
US$508.23
+8.2%
13.5%US$600.00US$325.00n/a29
Sep ’25US$495.89
US$509.82
+2.8%
13.7%US$600.00US$325.00n/a29
Aug ’25US$505.78
US$483.96
-4.3%
12.7%US$589.00US$325.00n/a30
Jul ’25US$471.25
US$468.27
-0.6%
12.8%US$577.00US$325.00n/a29
Jun ’25US$455.34
US$463.53
+1.8%
12.5%US$577.00US$325.00n/a28
May ’25US$402.14
US$459.72
+14.3%
12.2%US$574.00US$325.00n/a29
Apr ’25US$420.48
US$461.10
+9.7%
12.4%US$574.00US$325.00n/a29
Mar ’25US$432.76
US$461.41
+6.6%
12.6%US$578.00US$325.00n/a28
Feb ’25US$433.87
US$436.63
+0.6%
13.9%US$559.00US$314.00n/a27
Jan ’25US$406.89
US$409.39
+0.6%
11.0%US$500.00US$314.00n/a28
Dec ’24US$351.16
US$395.90
+12.7%
9.2%US$456.00US$314.00n/a28
Nov ’24US$369.33
US$386.90
+4.8%
9.4%US$456.00US$314.00US$471.1228
Oct ’24US$347.74
US$384.45
+10.6%
9.3%US$456.00US$314.00US$469.7627
Sep ’24US$351.10
US$384.26
+9.4%
9.4%US$456.00US$314.00US$495.8927
Aug ’24US$347.74
US$379.81
+9.2%
9.9%US$456.00US$306.00US$505.7827
Jul ’24US$351.91
US$375.26
+6.6%
9.3%US$456.00US$306.00US$471.2527
Jun ’24US$323.62
US$372.14
+15.0%
10.0%US$456.00US$305.00US$455.3428
May ’24US$345.00
US$337.23
-2.3%
9.5%US$439.00US$280.00US$402.1426
Apr ’24US$315.07
US$334.11
+6.0%
9.5%US$440.00US$280.00US$420.4826
Mar ’24US$291.23
US$332.40
+14.1%
9.7%US$440.00US$280.00US$432.7626
Feb ’24US$317.27
US$329.37
+3.8%
10.3%US$440.00US$280.00US$433.8726
Jan ’24US$288.78
US$323.74
+12.1%
10.8%US$440.00US$265.00US$406.8925
Dec ’23US$320.76
US$323.74
+0.9%
10.8%US$440.00US$265.00US$351.1625
Nov ’23US$314.20
US$321.98
+2.5%
10.8%US$442.00US$265.00US$369.3325

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

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