Vertex Pharmaceuticals Inc / Ma (VRTX)

Health Care · Biotechnology · US stock · S&P 500 component

$535.17 ▲ +10.65 (2.03%)

At close 22 Oct 2026 · USD · Volume 1,641,340

Compare with AMGN

Interactive chart Research report Forecast ranges Pro workspace SEC filings Historical data

Fair valueFair

$451 −15.7% to fair value

$226fair band $384–$547$677

Day's range

$521.30 – $537.73

52-week range

$403.16 – $560.25

About Vertex Pharmaceuticals Inc / Ma

Vertex Pharmaceuticals is a biotechnology company that discovers, develops and sells medicines for serious diseases. Its commercial business has been built mainly on treatments for cystic fibrosis, and it also runs research programs in areas such as pain, kidney disease and genetic blood disorders. Revenue comes from sales of approved medicines to patients through health systems and insurers, and the company funds a large pipeline of clinical research from those sales.

Over the last twelve months, $12.6 billion in revenue was reported. The three-year revenue growth rate is 10.4% a year. Profitability shows an operating margin of 38.0% and a return on invested capital of 32%. No dividend is paid. This gives an X-Ray Score of 50 out of 100. These figures describe past results as reported and are a factual snapshot, not a forecast. Some measures, such as margins for real estate trusts and banks, are defined differently from those of industrial firms, so comparisons should be made with care.

Price chart

Interactive chart Historical data & CSV

52-wk range $403.16 – $560.25Volume 1,641,340Daily, split-adjusted

Vitals

Market cap$136.6B

52-week range$403.16 – $560.25

Volume (last day)1,641,340

P/E (TTM)31.2

EBIT / EV yield3.7%

Free-cash-flow yield2.8%

Dividend yieldNo dividend

Revenue (TTM)$12.6B

Net income (TTM)$4.4B

Operating margin38.0%

Return on capital32.2%

Debt incl. leasesData missing

Cash & securities$7.9B

Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.

Fair value estimate

$451middle half of models $462 – $522

Fair −15.7% to fair value

Average of the 13 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.

Price $535

Undervalued < $384Fair $384 – $547Overvalued > $547

P/E multiple

$524

P/B multiple

$522

P/S multiple

$463

EV/EBITDA multiple

$482

EV/EBIT multiple

$462

EV/revenue multiple

$489

10-year DCF, EBITDA exit

$491

5-year DCF, EBITDA exit

$529

10-year DCF, revenue exit

$505

5-year DCF, revenue exit

$541

10-year DCF, growth exit

$286

5-year DCF, growth exit

$274

Earnings power value

$300

Growth the price implies

20.5%/yr

A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.

What this means

Average business, fairly priced

The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.

Before you invest · decision checklist

I understand how this company makes money Business quality is average or better ✓ 62 The price is not above fair value $451 fair value Debt looks manageable Revenue has been growing 10.4% a year Profits are backed by cash There are no red flags none raised I know what share of my savings this would be

Ticked boxes are filled in from our data; the rest are yours to answer.

The five-lens scan

Every score explained in one sentence, ranked against Health Care peers. Open a lens to see the numbers behind it.

Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data

Valuation Weak

25/100

Expensive against its sector on earnings and cash flow.

See the numbers →

EBIT / EV yield3.7%

Free-cash-flow yield2.8%

Fair value vs price0.8×

Growth Fair

56/100

Growing at a typical pace for its sector.

See the numbers →

Revenue growth (3y)10.4%

EPS growth (3y)6.1%

Growth consistency100%

Profitability Fair

56/100

Returns on capital are typical for its sector.

See the numbers →

Return on invested capital32.2%

Operating margin38.0%

Gross profitability39.5%

Financial health Fair

68/100

Balance sheet is in typical shape for its sector.

See the numbers →

Piotroski F-Score6 / 9

Interest coverNo interest cost

Dividends None

–/100

Pays no dividend.

See the numbers →

Quarterly results: last 6 quarters

+3.0%

Mar '25

+12.1%

Jun '25

+11.0%

Sep '25

+9.5%

Dec '25

+7.8%

Mar '26

+12.5%

Jun '26

Revenue against the same quarter a year earlier. Latest quarter revenue $3.3B, diluted EPS $4.31.

Compare with peers

INCY Incyte Corp80 AMGN Amgen Inc48 REGN Regeneron Pharmaceutic...47 BIIB Biogen Inc.44

Other Biotechnology companies by X-Ray Score.

SWOT analysis: Vertex Pharmaceuticals Inc / Ma

Strengthsinside the company

Return on invested capital is 32.2%, against a median of 12.5% for industry peers.
Operating margin of 38.0% is well above the 24.7% median of industry peers, a sign of pricing power or lower costs.
Revenue has grown 10.4% a year over three years (median 2.6% for industry peers).
Operating profit covers interest 50x, so debt costs are a small drag.

Weaknessesinside the company

No clear weakness in the figures we track.

Opportunitiesvaluation and setting

Price momentum is strong on the weekly and monthly signals (trends can reverse).

Threatsvaluation and setting

No specific threat is flagged by our checks; general market and interest-rate risk still applies.

Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.

Compare VRTX with peers and sector

Medians of 7 Biotechnology peers and of 59 Health Care stocks in our universe. Largest peers (X-Ray Score): ABBV 41, AMGN 48, GILD 37, REGN 47, MRNA 12, BIIB 44.

Metric	VRTX	Peers	Sector
X-Ray Score (out of 100)	50	44	49
Valuation	25	36	55
Growth	56	35	47
Profitability	56	39	49
Financial health	68	38	48
Dividends	–	51	51

Sector leaders: highest X-Ray Score in Health Care

VRTX ranks #29 of 60 in Health Care and #2 of 8 in Biotechnology by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.

Company	X-Ray Score
#1 INCY Incyte Corp	80
#2 DXCM Dexcom Inc	78
#3 PODD Insulet Corp	72
#4 RMD Resmed Inc	70
#5 ZTS Zoetis Inc.	69
…
#29 VRTX Vertex Pharmaceuticals Inc... (this stock)	50

Metric	VRTX	Peers	Sector
P/E ratio	31.0x	27.5x	28.0x
PEG ratio	5.07	5.04	2.29
Price / book	6.7x	8.1x	3.7x
Price / sales	10.9x	6.4x	3.6x
EV / EBITDA	25.7x	18.5x	17.5x
Price / free cash flow	36.0x	23.1x	22.3x
Dividend yield	–	2.1%	1.0%
Gap to our fair value	−15.7%	−12.6%	−1.0%

Metric	VRTX	Peers	Sector
Price change, 1 month	+3.9%	+8.2%	+7.6%
Price change, 3 months	+13.2%	+22.9%	+14.9%
Price change, 6 months	+22.3%	+31.0%	+22.1%
Price change, 1 year	+25.5%	+40.8%	+20.7%

Metric	VRTX	Peers	Sector
Market value	$136.6B	$86.8B	$49.2B
Revenue (last 12 months)	$12.6B	$15.5B	$14.7B
EBITDA (last 12 months)	$5.0B	$2.7B	$2.7B
Net income (last 12 months)	$4.4B	$1.4B	$1.4B
Free cash flow (last 12 months)	$3.8B	$7.0B	$2.1B

Metric	VRTX	Peers	Sector
Revenue growth, last year	+8.9%	+2.4%	+7.1%
Revenue growth, 3 years a year	+10.4%	+2.6%	+5.5%
EPS growth, 3 years a year	+6.1%	+4.1%	+4.5%
Free cash flow growth, 3 years a year	−6.6%	−2.7%	+4.5%
Dividend growth	–	+5.1%	+4.2%

Metric	VRTX	Peers	Sector
Gross margin	86.0%	73.5%	65.0%
EBITDA margin	39.7%	27.2%	20.5%
Operating margin	38.0%	24.7%	15.8%
Net margin	35.0%	13.8%	10.0%
Return on invested capital	32.2%	12.5%	11.8%
Return on equity	21.8%	10.5%	13.6%

Metric	VRTX	Peers	Sector
Net debt / EBITDA	–	1.9x	2.0x
Interest cover	50.0x	6.3x	9.3x
Current ratio	3.2x	2.3x	1.5x
Piotroski F-score (0 to 9)	6	7	6

Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.

Factor ratings for VRTX

Each factor is rated by where VRTX stands among the 60 Health Care stocks in our universe.

Rating against the sector

Goodthe top third of these stocks

Averagethe middle third of these stocks

Badthe bottom third of these stocks

"Beats" is the share of those stocks it is ahead of.

Against its own history

The last columns set today's figure against the company's own median of its last five financial years:

▲ Betterbetter than its usual level

▼ Worseworse than its usual level

≈ In linewithin its usual range

For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.

In total: 9 Good · 5 Average · 8 Bad of 22 Growth: 1 · 2 · 0 Profitability: 5 · 0 · 0 Financial strength: 2 · 1 · 0 Valuation: 0 · 1 · 4 Cash flow: 1 · 0 · 3 Efficiency: 0 · 1 · 1

Factor	VRTX	Rating	Sector median	Own 5-year median	Against own history
Growth
Revenue growth, 3 years a year	+10.4%	Good beats 73%	+5.5%	–	–
Revenue growth, last year	+8.9%	Average beats 63%	+7.1%	+11.7%	▼ Worse
EPS growth, 3 years a year	+6.1%	Average beats 55%	+5.0%	–	–
Profitability
Gross margin	86.0%	Good beats 93%	65.0%	87.2%	≈ In line
Operating margin	38.0%	Good beats 98%	16.4%	36.7%	≈ In line
Net margin	35.0%	Good beats 99%	11.1%	32.9%	≈ In line
Return on invested capital	32.2%	Good beats 86%	12.2%	–	–
Return on equity	21.8%	Good beats 71%	13.7%	21.2%	≈ In line
Financial strength
Interest cover	50.0x	Good beats 82%	9.4x	50.0x	≈ In line
Current ratio	3.19	Good beats 89%	1.52	3.99	▼ Worse
Piotroski F-score	6 / 9	Average beats 43%	6 / 9	–	–
Valuation
P/E ratio	31.0x	Average beats 44%	28.2x	26.8x	▼ Worse
Price / book	6.7x	Bad beats 32%	3.7x	6.0x	▼ Worse
Price / sales	10.9x	Bad beats 8%	3.7x	9.4x	▼ Worse
EV / EBITDA	25.7x	Bad beats 31%	17.6x	–	–
Free cash flow yield	2.8%	Bad beats 22%	4.4%	3.1%	≈ In line
Cash flow
Free cash flow margin	30.2%	Good beats 94%	16.3%	31.8%	≈ In line
Cash from operations / net income	0.97	Bad beats 3%	1.61	1.05	≈ In line
Free cash flow growth, 3 years a year	−6.6%	Bad beats 21%	+4.3%	–	–
Accruals (lower is better)	+0.4%	Bad beats 3%	−3.9%	–	–
Efficiency
Inventory turnover	1.0x	Bad beats 3%	2.9x	1.7x	▼ Worse
Days sales outstanding	62 days	Average beats 51%	62 days	58 days	≈ In line

These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.

Fundamentals checklist

● 8 Good · ● 3 Average · ● 4 Bad

Cash quality

Earnings backed by cashBad

Free-cash-flow yieldBad

Risk models

Altman Z''Good

Piotroski F-ScoreAverage

Growth

EPS growth (3y)Average

Free-cash-flow growth (3y)Bad

Revenue growth (3y)Good

Growth consistencyGood

Balance sheet

Current ratioGood

Interest coverGood

Valuation

Fair value vs priceBad

EBIT / EV yieldAverage

Profitability

Return on invested capitalGood

Operating marginGood

Gross profitabilityGood

Each check is graded against the company's sector, not a fixed number. Checklist score 56/100.

Financials

	FY21	FY22	FY23	FY24	FY25
Revenue	$7.6B	$8.9B	$9.9B	$11.0B	$12.0B
Operating income	$2.8B	$4.3B	$3.8B	−$233M	$4.2B
Net income	$2.3B	$3.3B	$3.6B	−$536M	$4.0B
Operating cash flow	$2.6B	$4.1B	$3.5B	−$493M	$3.6B
Operating margin	36.7%	48.2%	38.8%	-2.1%	34.8%
Free cash flow	$2.4B	$3.9B	$3.3B	−$790M	$3.2B
Diluted EPS	$9.01	$12.82	$13.89	$-2.08	$15.32

Fiscal years, from SEC filings.

Technical summary

Daily

Bullish

11 bullish · 1 neutral · 4 bearish

Weekly

Strongly bullish

11 bullish · 1 neutral · 0 bearish

Monthly

Strongly bullish

7 bullish · 1 neutral · 0 bearish

Moving averages (daily)

SMA 10	508.6	Bullish
EMA 10	513.7	Bullish
SMA 20	510.8	Bullish
EMA 20	512.5	Bullish
SMA 50	522.6	Bullish
EMA 50	511.8	Bullish
SMA 100	500.3	Bullish
EMA 100	500.8	Bullish
SMA 200	477.2	Bullish
EMA 200	483.4	Bullish

Oscillators (daily)

RSI (14)	61.53	Neutral
MACD (12, 26)	-0.15	Bearish
Momentum (12)	6.54	Bullish
Stochastic %K (14)	95.23	Bearish
Williams %R (14)	-4.77	Bearish
CCI (20)	152.5	Bearish

Pivot points (classic, last session)

508.6

515.0

525.1

Pivot

531.4

541.5

547.8

557.9

Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.

ETFs that hold VRTX

ETF	Share of the fund
IBB iShares Biotechnology	8.08%
FBT First Trust NYSE Arca Biotechnology In...	3.07%
XLV Health Care Select Sector SPDR	2.19%
IYH iShares U.S. Healthcare	2.00%
VHT Vanguard Health Care	1.80%
FHLC Fidelity MSCI Health Care Index	1.76%
IXJ iShares Global Healthcare	1.64%
CGUS Capital Group Core Equity	1.58%

The eight funds with the largest weight in VRTX among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.