VRTX Stock Analysis
NMS · Healthcare · Biotechnology
$527.77
+1.58 (+0.30%)
VRTX Interactive Price Chart & Trading Signals
VRTX Stock Snapshot — Valuation, Risk & Technical Signals
VRTX Key Fundamentals, Analyst Targets & Company Profile
Key Financial Ratios
Market Cap
$133.77B
P/E Ratio
30.77
Forward P/E
26.27
PEG Ratio
1.93
P/B Ratio
6.60
EPS
$17.15
Dividend Yield
—
52W Range
$384.39 – $560.25
Beta
0.32
Volume
0.2M
ROE
23.5%
Profit Margin
35.0%
Revenue Growth
12.5%
Gross Margin
55.0%
EV/EBITDA
25.00
Analyst Target
$570.32
The trailing price-to-earnings ratio stands at 30.8x. Forward P/E of 26.3x implies earnings expansion expected. Price-to-book is 6.60x. EV/EBITDA sits at 25.00x. Market capitalization is $133.77B. Revenue is growing at 12.5% on a trailing basis. Earnings are expanding at 8.0%. Profit margins are 35.0%. Return on equity is 23.5%. Beta of 0.32 indicates defensive profile.
Analyst Consensus
Recommendation
Buy
Low Target
$350.00
Mean Target
$570.32
High Target
$672.00
Based on 28 analysts
About VRTX
Vertex Pharmaceuticals Incorporated operates as a biotechnology company in the United States, Europe, and internationally. The company offers transformative medicines for people with serious diseases with a focus on specialty markets, such as cystic fibrosis (CF), sickle cell disease (SCD), transfusion dependent beta thalassemia (TDT), and acute pain. It markets TRIKAFTA/KAFTRIO for people with CF with at least one F508del mutation for 2 years of age and older; ALYFTREK for the treatment for people with CF 6 years of age and older; SYMDEKO/SYMKEVI for treatment of patients with CF 6 years of age and older; ORKAMBI for CF patients 1 year or older; and KALYDECO for the treatment of patients with 1 month or older who have CF with ivacaftor. The company also develops CASGEVY for the treatment of SCD and TDT; JOURNAVX for the treatment of acute pain in adults; VX-522, a CFTR mRNA therapeutic designed to treat the underlying cause of CF, which is in Phase 1/2 clinical trial; inaxaplin for the treatment of APOL1-mediated kidney disease, which is in single Phase 2 trial; VX-264 for treating Type 1 Diabetes; VX-670 for the treatment of myotonic dystrophy type 1; and VX-407, a small molecule corrector for the treatment of autosomal dominant polycystic kidney disease. In addition, the company also operates as a clinical-stage pharmaceutical company, that focuses on the discovery, development, and commercialization of novel therapeutics for rare endocrine diseases and endocrine-related tumors. The company sells its products primarily to specialty pharmacy and distributors, wholesalers, retail pharmacies, hospitals, and clinics. Vertex Pharmaceuticals Incorporated has a strategic collaboration with AbCellera Biologics Inc. to research, develop, manufacture, and commercialize multispecific T-cell engagers (TCEs) for autoimmune diseases and other conditions. Vertex Pharmaceuticals Incorporated was founded in 1989 and is headquartered in Boston, Massachusetts.
VRTX Deep Dive Analysis
Bottom Line
Verdict
OvervaluedBest for
Quality-focused portfoliosWatch out for
Premium valuationNon-zero inputs
4/5Counts non-zero values for price, P/E, beta, macro risk, and revenue growth; zero may mean unavailable or be a genuine zero.
Vertex Pharmaceuticals Incorporated (VRTX) trades above our multi-model fair value estimate of $271.24 by approximately 48.6%. Trailing P/E: 30.8x. Profitability signals include profit margin of 35.0% and return on equity of 23.5%. Recent growth metrics show revenue growth of 12.5% and earnings growth of 8.0%. Risk profile: defensive beta of 0.32. Consensus: buy.
Valuation, Growth & Risk
Valuation
Overvalued
P/E 30.8x
Price is above what fundamentals suggest.
Growth
Expanding
Rev 12.5%
Revenue is outpacing the market.
Risk
Low
Beta 0.32
Movement is likely to track the broader market.
Valuation Snapshot
Vertex Pharmaceuticals Incorporated (VRTX) trades above our multi-model fair value estimate of $271.24 by approximately 48.6%. The trailing price-to-earnings ratio stands at 30.8x. Forward P/E of 26.3x suggests earnings compression ahead. Price-to-sales is 10.6x. Price-to-book is 6.6x. EV/EBITDA sits at 25.0x. Market capitalization is $133.77B.
Why it matters: Paying a premium works only if the company keeps growing faster than expected.
Growth & Profitability
Revenue is growing at 12.5% on a trailing basis. Earnings are expanding at 8.0%. Profit margins are 35.0%. Return on equity is 23.5%. Return on assets is 11.9%.
Why it matters: Growing revenue with healthy margins usually means the business is gaining market share or pricing power.
Risk Profile
Beta of 0.32 indicates defensive profile. Net debt position is $-5874800128.00.
Why it matters: Lower risk means steadier returns, but often with less upside in bull markets.
Analyst Context
Analyst consensus target of $570.32 implies 8.1% upside. Target range spans $350.00 to $672.00. 28 analysts cover the stock. Consensus recommendation: buy.
Why it matters: Analyst targets reflect what professionals expect over 12 months. A wide gap between price and target can mean the market disagrees with the consensus.
Investor Fit
Strong profitability metrics may appeal to quality-focused portfolios.
Takeaway: Match the stock's risk-reward profile with your own goals and time horizon. No single metric tells the whole story.
Data Methodology & Sources
Market Data (Facts)
- Price, volume, and market cap: Yahoo Finance (may be delayed)
- P/E, EPS, revenue, and debt: Yahoo Finance fundamentals
- Analyst estimates: Yahoo Finance (coverage and update times vary)
- Insider transactions: Yahoo Finance (reporting may be delayed)
QuantSoar Model (Derived)
- Fair value: available outputs from seven models; outliers are filtered using MAD (k=3.5), then combined with fixed model weights.
- Margin of Safety = (Fair Value − Displayed Price) / Displayed Price × 100
- Composite Score: 40% Value + 30% Momentum + 30% Risk
- Verdict Gauge: Base 50 + Valuation (up to ±25) + Whale sentiment (up to ±10) + Insider buying (+5) + Macro risk (up to ±10) + Technical signal (up to ±10). Analyst consensus is separate.
Model outputs are estimates based on available data and are not investment advice. Cross-check with primary sources before making investment decisions.
VRTX Overvalued
Vertex Pharmaceuticals Incorporated (VRTX) trades above our multi-model fair value estimate of $271.24 by approximately 48.6%.
Frequently Asked Questions
ValuationIs VRTX stock overvalued right now?
ValuationWhat is VRTX fair value based on current fundamentals?
RiskHow risky is VRTX compared with other stocks?
GrowthIs VRTX still growing?
AnalystWhat do analysts think about VRTX?
CatalystWhat could change the investment case for VRTX?
Related Stocks
About the Author
Phasakorn Traklang (Peach) — Founder
Phasakorn Traklang (Peach) is the founder of QuantSoar, bringing expertise in SEO, web development, and technical analytics to build an AI-powered investment platform accessible to retail investors worldwide.
Connect on LinkedInInvestment Disclaimer: Tax treatment can depend on tax residence, account type, and tax year. This information is general and is not personal tax or investment advice. SEC
Data: Yahoo Finance / SEC EDGAR / Alpha Vantage / Finnhub. AI outputs verified against source data.