Vertex Pharmaceuticals Incorporated (VRTX) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-37.8%

$341.39

vs $548.51 price

Levered DCF

$517.79

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

9.14

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	29.32×	-193.61×	28.96×	22.27×	24.16×	22.64×	47.81×	20.09×
P/B	6.21×	6.32×	5.96×	5.32×	5.6×	7.07×	9.24×	9.5×
P/S	9.6×	9.41×	10.62×	8.28×	7.47×	9.9×	13.5×	13.83×
EV / EBITDA	23.57×	207.43×	20.69×	14.51×	17.4×	17.16×	34.46×	56.7×
Gross margin	85.0%	86.1%	87.2%	87.9%	88.1%	88.1%	86.8%	86.6%
Operating margin	39.4%	-2.1%	38.8%	48.2%	36.7%	46.0%	28.8%	20.8%
Net margin	32.7%	-4.9%	36.7%	37.2%	30.9%	43.7%	28.3%	68.8%
Current ratio	2.9×	2.69×	3.99×	4.83×	4.46×	4.33×	3.61×	3.43×
Debt / equity	0.21×	0.11×	0.05×	0.06×	0.1×	0.11×	0.11×	0.13×
Interest coverage	357.95×	-7.61×	86.89×	78.6×	45.24×	49.12×	20.47×	18.62×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	21.2%	-3.3%	20.6%	23.9%	23.2%	31.2%	19.3%	47.3%
Return on invested capital	18.1%	2.6%	16.4%	21.8%	21.0%	25.1%	14.4%	12.4%
Return on assets	15.1%	-2.4%	15.9%	18.3%	17.4%	23.1%	14.1%	33.6%
Free cash flow yield	2.8%	-0.8%	3.1%	5.3%	4.3%	4.9%	2.7%	2.8%
Earnings yield	3.4%	-0.5%	3.5%	4.5%	4.1%	4.4%	2.1%	5.0%
Enterprise value	$114.7B	$100.9B	$95.3B	$64.4B	$50.8B	$56.4B	$53.8B	$40.1B
Net debt / EBITDA	-0.25×	-5.8×	-2.08×	-2.17×	-2×	-1.54×	-1.57×	-2.92×
Cash conversion cycle (days)	310	242	166	112	119	114	109	61