Vertex Pharmaceuticals Incorporated

NasdaqGS:VRTX Stock Report

Market Cap: US$123.5b

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 ($485.37) is trading below our estimate of fair value ($960.21)

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/Revenue11.1x
Enterprise Value/EBITDA26x
PEG Ration/a

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 Average9.4x
REGN Regeneron Pharmaceuticals
9.2x7.7%US$125.7b
GILD Gilead Sciences
3.7x2.2%US$103.5b
AMGN Amgen
5.8x3.0%US$177.4b
SGEN Seagen
18.8x22.6%US$43.2b
VRTX Vertex Pharmaceuticals
12.1x9.5%US$123.5b

Price-To-Sales vs Peers: VRTX is expensive based on its Price-To-Sales Ratio (12.1x) compared to the peer average (9.4x).

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/a29.8%
 n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a29.8%
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No more companies

Price-To-Sales vs Industry: VRTX is expensive based on its Price-To-Sales Ratio (12.1x) compared to the US Biotechs industry average (11.5x).

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 Ratio12.1x
Fair PS Ratio8.2x

Price-To-Sales vs Fair Ratio: VRTX is expensive based on its Price-To-Sales Ratio (12.1x) compared to the estimated Fair Price-To-Sales Ratio (8.2x).

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$485.37
US$509.82
+5.0%
13.7%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$314.00n/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$314.00US$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
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

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

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