VRTXVertex Pharmaceuticals
Is the price fair?
Neither cheap nor expensive: growth expectations in line with delivery and in its normal P/E range.
Priced for ~11% a year FCF growth. Roughly in line with its three-year revenue growth of 10% a year.
In its normal range: P/E 29.7 vs a 27.2 median over 34 quarters (+9% vs median).
Sector median 22.6× across 130 covered peers. EV/EBIT counts debt as part of the price, so a cash-rich and a borrowed company can be compared on the same footing.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The growth-implied estimate assumes a fixed discount rate; capital-heavy sectors look structurally rich on it.
What VRTX's price assumes
Vertex Pharmaceuticals trades at 29.7× earnings against 18.8× for the median Biotechnology name, more expensive than its own group.
Trailing P/E · Biotechnology median 18.8 · 1.58× the median: the market pays up for this one
- Price / sales
- 9.55
Price / sales · today's price, fiscal year to Dec 31, 2025
- Free cash flow yield
- 3.3%
Free cash flow yield · Biotechnology median 3.6%
- Growth the price implies
- +11%
Growth the price implies · The price pays for +11% free cash flow growth a year for a decade; the business has delivered −0.71% a year over the last three.
Details›
- Price / booktoday's price, fiscal year to Dec 31, 2025
- 6.14
- EV / EBITtoday's price, fiscal year to Dec 31, 2025
- 25.9
- EV / salestoday's price, fiscal year to Dec 31, 2025
- 9.00
- Healthcare median P/E509 names
- 26.2
- Biotechnology median P/E244 names
- 18.8
- Free cash flow, trailing twelve months
- $3.80B
- Market capitalisation
- $114.6B
- 3-year revenue growth
- +9.8%
- 3-year free cash flow growth
- −0.71%
| Method | Per share |
|---|---|
| Its own P/E history, lower quartile | $393.01 |
| Its own P/E history, median | $466.35 |
| Its own P/E history, upper quartile | $688.40 |
| 52-week range | $376.62 – $558.12 |
| Today | $510.18 |
Multiples from SEC filings and end-of-day closes; implied growth from a reverse discounted cash flow. Group medians across the names Ryufin tracks.
Biotechnology
The closest names by size in the same industry