Historical Valuation
Vertex Pharmaceuticals Inc (VRTX) is now in the Fair zone, suggesting that its current forward PS ratio of 8.97 is considered Fairly compared with the five-year average of 187.14. The fair price of Vertex Pharmaceuticals Inc (VRTX) is between 352.29 to 475.23 according to relative valuation methord.
Relative Value
Fair Zone
352.29-475.23
Current Price：469.68
Fair
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
Vertex Pharmaceuticals Inc (VRTX) has a current Price-to-Book (P/B) ratio of 6.63. Compared to its 3-year average P/B ratio of 6.57 , the current P/B ratio is approximately 0.94% higher. Relative to its 5-year average P/B ratio of 6.32, the current P/B ratio is about 4.98% higher. Vertex Pharmaceuticals Inc (VRTX) has a Forward Free Cash Flow (FCF) yield of approximately 2.91%. Compared to its 3-year average FCF yield of 2.27%, the current FCF yield is approximately 28.40% lower. Relative to its 5-year average FCF yield of 3.17% , the current FCF yield is about -8.10% lower.
P/B
Median3y
6.57
Median5y
6.32
FCF Yield
Median3y
2.27
Median5y
3.17
Competitors Valuation Multiple
AI Analysis for VRTX
The average P/S ratio for VRTX competitors is 4.31, providing a benchmark for relative valuation. Vertex Pharmaceuticals Inc Corp (VRTX.O) exhibits a P/S ratio of 8.97, which is 108.02% above the industry average. Given its robust revenue growth of 10.99%, this premium appears unsustainable.
Performance Decomposition
AI Analysis for VRTX
1Y
3Y
5Y
Market capitalization of VRTX increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of VRTX in the past 1 year is driven by Unknown.
People Also Watch
Frequently Asked Questions
Is VRTX currently overvalued or undervalued?
Vertex Pharmaceuticals Inc (VRTX) is now in the Fair zone, suggesting that its current forward PS ratio of 8.97 is considered Fairly compared with the five-year average of 187.14. The fair price of Vertex Pharmaceuticals Inc (VRTX) is between 352.29 to 475.23 according to relative valuation methord.
What is Vertex Pharmaceuticals Inc (VRTX) fair value?
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. The fair price of Vertex Pharmaceuticals Inc (VRTX) is between 352.29 to 475.23 according to relative valuation methord.
How does VRTX's valuation metrics compare to the industry average?
The average P/S ratio for VRTX's competitors is 4.31, providing a benchmark for relative valuation. Vertex Pharmaceuticals Inc Corp (VRTX) exhibits a P/S ratio of 8.97, which is 108.02% above the industry average. Given its robust revenue growth of 10.99%, this premium appears unsustainable.
What is the current P/B ratio for Vertex Pharmaceuticals Inc (VRTX) as of Jan 09 2026?
As of Jan 09 2026, Vertex Pharmaceuticals Inc (VRTX) has a P/B ratio of 6.63. This indicates that the market values VRTX at 6.63 times its book value.
What is the current FCF Yield for Vertex Pharmaceuticals Inc (VRTX) as of Jan 09 2026?
As of Jan 09 2026, Vertex Pharmaceuticals Inc (VRTX) has a FCF Yield of 2.91%. This means that for every dollar of Vertex Pharmaceuticals Inc’s market capitalization, the company generates 2.91 cents in free cash flow.
What is the current Forward P/E ratio for Vertex Pharmaceuticals Inc (VRTX) as of Jan 09 2026?
As of Jan 09 2026, Vertex Pharmaceuticals Inc (VRTX) has a Forward P/E ratio of 22.55. This means the market is willing to pay $22.55 for every dollar of Vertex Pharmaceuticals Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Vertex Pharmaceuticals Inc (VRTX) as of Jan 09 2026?
As of Jan 09 2026, Vertex Pharmaceuticals Inc (VRTX) has a Forward P/S ratio of 8.97. This means the market is valuing VRTX at $8.97 for every dollar of expected revenue over the next 12 months.