VRTX Relative Valuation
VRTX's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, VRTX is overvalued; if below, it's undervalued.
Historical Valuation
Vertex Pharmaceuticals Inc (VRTX) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.00 is considered Undervalued compared with the five-year average of 186.58. The fair price of Vertex Pharmaceuticals Inc (VRTX) is between +Inf to +Inf according to relative valuation methord. Compared to the current price of 457.36 USD , Vertex Pharmaceuticals Inc is Undervalued By Fair.
Relative Value
Fair Zone
+Inf-+Inf
Current Price：457.36
Fair
Undervalued
22.86
PE
1Y
3Y
5Y
Trailing
Forward
17.34
EV/EBITDA
Vertex Pharmaceuticals Inc. (VRTX) has a current EV/EBITDA of 17.34. The 5-year average EV/EBITDA is 22.43. The thresholds are as follows: Strongly Undervalued below -25.88, Undervalued between -25.88 and -1.72, Fairly Valued between 46.58 and -1.72, Overvalued between 46.58 and 70.74, and Strongly Overvalued above 70.74. The current Forward EV/EBITDA of 17.34 falls within the Historic Trend Line -Fairly Valued range.
18.00
EV/EBIT
Vertex Pharmaceuticals Inc. (VRTX) has a current EV/EBIT of 18.00. The 5-year average EV/EBIT is 28.90. The thresholds are as follows: Strongly Undervalued below -54.47, Undervalued between -54.47 and -12.79, Fairly Valued between 70.58 and -12.79, Overvalued between 70.58 and 112.27, and Strongly Overvalued above 112.27. The current Forward EV/EBIT of 18.00 falls within the Historic Trend Line -Fairly Valued range.
9.19
PS
Vertex Pharmaceuticals Inc. (VRTX) has a current PS of 9.19. The 5-year average PS is 8.64. The thresholds are as follows: Strongly Undervalued below 5.70, Undervalued between 5.70 and 7.17, Fairly Valued between 10.10 and 7.17, Overvalued between 10.10 and 11.57, and Strongly Overvalued above 11.57. The current Forward PS of 9.19 falls within the Historic Trend Line -Fairly Valued range.
16.16
P/OCF
Vertex Pharmaceuticals Inc. (VRTX) has a current P/OCF of 16.16. The 5-year average P/OCF is 28.69. The thresholds are as follows: Strongly Undervalued below -46.60, Undervalued between -46.60 and -8.95, Fairly Valued between 66.34 and -8.95, Overvalued between 66.34 and 103.98, and Strongly Overvalued above 103.98. The current Forward P/OCF of 16.16 falls within the Historic Trend Line -Fairly Valued range.
26.19
P/FCF
Vertex Pharmaceuticals Inc. (VRTX) has a current P/FCF of 26.19. The 5-year average P/FCF is 28.42. The thresholds are as follows: Strongly Undervalued below -10.93, Undervalued between -10.93 and 8.75, Fairly Valued between 48.09 and 8.75, Overvalued between 48.09 and 67.76, and Strongly Overvalued above 67.76. The current Forward P/FCF of 26.19 falls within the Historic Trend Line -Fairly Valued range.
Vertex Pharmaceuticals Inc (VRTX) has a current Price-to-Book (P/B) ratio of 6.71. Compared to its 3-year average P/B ratio of 6.54 , the current P/B ratio is approximately 2.52% higher. Relative to its 5-year average P/B ratio of 6.33, the current P/B ratio is about 5.97% higher. Vertex Pharmaceuticals Inc (VRTX) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.34%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.20% , the current FCF yield is about -100.00% lower.
6.71
P/B
Median3y
6.54
Median5y
6.33
2.84
FCF Yield
Median3y
2.34
Median5y
3.20
Competitors Valuation Multiple
The average P/S ratio for VRTX's competitors is 3.46, providing a benchmark for relative valuation. Vertex Pharmaceuticals Inc Corp (VRTX) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 10.99%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of VRTX increased by 13.57% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 2.77B to 3.08B.
The secondary factor is the P/E Change, contributed 9.24%to the performance.
Overall, the performance of VRTX in the past 1 year is driven by Revenue Growth. Which is more sustainable.
People Also Watch
FAQ
Is Vertex Pharmaceuticals Inc (VRTX) currently overvalued or undervalued?
What is Vertex Pharmaceuticals Inc (VRTX) fair value?
How does VRTX's valuation metrics compare to the industry average?
What is the current P/B ratio for Vertex Pharmaceuticals Inc (VRTX) as of Dec 05 2025?
What is the current FCF Yield for Vertex Pharmaceuticals Inc (VRTX) as of Dec 05 2025?
What is the current Forward P/E ratio for Vertex Pharmaceuticals Inc (VRTX) as of Dec 05 2025?