Vertex Pharmaceuticals Incorporated

NasdaqGS:VRTX Stock Report

Market Cap: US$107.8b

Vertex Pharmaceuticals Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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.

Below Fair Value: VRTX ($417.32) is trading below our estimate of fair value ($630.67)

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?

Other financial metrics that can be useful for relative valuation.

VRTX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue9.6x
Enterprise Value/EBITDA21.2x
PEG Ratio2.7x

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 Average32.9x
REGN Regeneron Pharmaceuticals
26.3x10.9%US$103.8b
GILD Gilead Sciences
16.1x6.5%US$91.0b
AMGN Amgen
22.8x9.1%US$153.4b
ABBV AbbVie
66.3x23.1%US$319.3b
VRTX Vertex Pharmaceuticals
29.8x11.2%US$107.8b

Price-To-Earnings vs Peers: VRTX is good value based on its Price-To-Earnings Ratio (29.8x) compared to the peer average (32.9x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.6%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.6%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: VRTX is expensive based on its Price-To-Earnings Ratio (29.8x) compared to the US Biotechs industry average (21.5x).


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 Ratio29.8x
Fair PE Ratio31x

Price-To-Earnings vs Fair Ratio: VRTX is good value based on its Price-To-Earnings Ratio (29.8x) compared to the estimated Fair Price-To-Earnings Ratio (31x).


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$417.32
US$459.71
+10.2%
12.5%US$574.00US$325.00n/a28
Mar ’25US$432.76
US$459.98
+6.3%
12.8%US$578.00US$325.00n/a27
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$314.00n/a28
Oct ’24US$347.74
US$384.45
+10.6%
9.3%US$456.00US$314.00n/a27
Sep ’24US$351.10
US$384.26
+9.4%
9.4%US$456.00US$314.00n/a27
Aug ’24US$347.74
US$379.81
+9.2%
9.9%US$456.00US$306.00n/a27
Jul ’24US$351.91
US$375.26
+6.6%
9.3%US$456.00US$306.00n/a27
Jun ’24US$323.62
US$372.14
+15.0%
10.0%US$456.00US$305.00n/a28
May ’24US$345.00
US$337.23
-2.3%
9.5%US$439.00US$280.00n/a26
Apr ’24US$315.07
US$334.11
+6.0%
9.5%US$440.00US$280.00n/a26
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
Oct ’23US$289.54
US$310.00
+7.1%
10.9%US$389.00US$250.00US$347.7425
Sep ’23US$290.20
US$310.08
+6.9%
10.9%US$389.00US$250.00US$351.1025
Aug ’23US$273.83
US$302.17
+10.3%
12.1%US$368.00US$240.00US$347.7424
Jul ’23US$287.32
US$294.22
+2.4%
12.2%US$368.00US$240.00US$351.9123
Jun ’23US$269.41
US$294.00
+9.1%
12.2%US$368.00US$240.00US$323.6223
May ’23US$273.22
US$288.77
+5.7%
12.4%US$350.00US$222.00US$345.0022
Apr ’23US$266.15
US$274.86
+3.3%
10.9%US$341.00US$208.00US$315.0722
Mar ’23US$230.69
US$273.65
+18.6%
10.7%US$341.00US$208.00US$291.2323

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


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