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Vertex Pharmaceuticals Inc (VRTX) stock analysis

VRTXNasdaqPharmaceutical PreparationsFiscal year ends December 31
Financials through Q2 FY2026, quarter ended Jun 30, 2026Last filing: 10-Q on Nov 3, 2026Score 15/3028% above fair value
$547.03−0.86 (-0.16%)

Close on Nov 11, 2026Market cap $138.65BP/E 31.8Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value0Growth3Performance6Health6Dividend0

Solid15 of 30 checks passed

Vertex Pharmaceuticals passes 15 of the 30 checks behind our score; 5 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
0/6
Growth
3/6
Past performance
6/6
Financial health
6/6
Dividend
0/6

What stands out

  • Return on equity over 15%

    Return on equity was 23.5% over the last twelve months and averaged 19.0% over five years.

  • Return on capital over 10%

    Return on invested capital was 34.4%, above the 10% that usually covers the cost of capital.

  • No debt

    Vertex Pharmaceuticals has no borrowings on its latest balance sheet.

  • Earnings grew over 5 years

    Net income grew 7.8% a year on average over the last five fiscal years.

What to watch

  • Margin of safety under 20%

    The price is 28.4% above fair value, so there is no margin of safety.

  • Trading above fair value

    The share price of $547.03 is above our fair value estimate of $425.97.

  • EPS growing under 10% a year

    Diluted EPS grew 6.1% a year over the last three fiscal years.

  • P/E above its 5-year median

    Vertex Pharmaceuticals's P/E of 31.8 is above its own 5-year median of 28.3.

Valuation0/6

  • P/E above its 5-year median

    Vertex Pharmaceuticals's P/E of 31.8 is above its own 5-year median of 28.3.

  • P/E above the industry

    Vertex Pharmaceuticals's P/E of 31.8 is above the Drugs median of 25.1.

  • EV/EBITDA above its 5-year median

    Vertex Pharmaceuticals's EV/EBITDA of 26.2 is above its 5-year median of 21.5.

  • P/B above the industry

    Vertex Pharmaceuticals's price-to-book of 6.85 is above the Drugs median of 2.29.

  • Trading above fair value

    The share price of $547.03 is above our fair value estimate of $425.97.

  • Margin of safety under 20%

    The price is 28.4% above fair value, so there is no margin of safety.

Growth3/6

  • Revenue growing 10%+ a year

    Revenue grew 10.4% a year over the last three fiscal years.

  • EPS growing under 10% a year

    Diluted EPS grew 6.1% a year over the last three fiscal years.

  • Earnings growth accelerating

    Net income grew 21.1% over the last twelve months, against a 5-year average of 7.8% a year.

  • Growing faster than the industry

    Revenue grew 10.2% over the last twelve months; the Drugs median is 8.0%.

  • Guidance lowered

    Vertex Pharmaceuticals lowered its 2026 non-CF products outlook on Aug 3, 2026.

  • Gross margin slipping

    Gross margin was 86.0% over the last twelve months, against 86.1% a year earlier.

Past performance6/6

  • Return on equity over 15%

    Return on equity was 23.5% over the last twelve months and averaged 19.0% over five years.

  • Return on capital over 10%

    Return on invested capital was 34.4%, above the 10% that usually covers the cost of capital.

  • Return on equity above the industry

    Vertex Pharmaceuticals's return on equity of 23.5% is above the Drugs median of -58.8%.

  • Earnings grew over 5 years

    Net income grew 7.8% a year on average over the last five fiscal years.

  • Net margin above its 5-year average

    Net margin was 35.0% over the last twelve months, against a 5-year average of 26.6%.

  • Net margin above the industry

    Vertex Pharmaceuticals's net margin of 35.0% is above the Drugs median of -53.0%.

Financial health6/6

  • No debt

    Vertex Pharmaceuticals has no borrowings on its latest balance sheet.

  • Debt not rising

    With no debt today, leverage cannot have risen.

  • Debt covered by cash flow

    There is no debt to cover.

  • Interest well covered

    No meaningful interest expense to cover.

  • Short-term assets cover short-term debts

    Current assets are 3.19 times current liabilities.

  • Low bankruptcy risk

    The Altman Z-score is 13.81; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Vertex Pharmaceuticals has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$425.97

The share price is 28% above this estimate.

20%+ below
Near fair value
20%+ above
$547.03Price$425.97Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/E26.7×28.3×25.1×$458.6547%
EV/EBITDA19.3×21.5×17.1×$411.4741%
P/B4.3×6.3×2.3×$346.0112%
Earnings powerleft out, too far from the others7.5% cost of equity––$106.29–
Fair value$425.97100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Own 5-year median 28.3
  • Drugs median 25.1

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$784.51M
Value traded per 1% price move
$504.55M

Downside

Low risk

Typical loss in a bad month
9.7%
Volatility (annualized)
30%
Sharpe ratio, 1 year
0.86
Beta to the S&P 500 (5Y)
0.53

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2011 to 2025

Gross margin

86.2%−1.9 pts over 5 years

Operating margin

34.8%−11.3 pts over 5 years

Net margin

32.9%−10.8 pts over 5 years

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