Stock Analysis on Net

Vertex Pharmaceuticals Inc. (NASDAQ:VRTX)

Enterprise Value to EBITDA (EV/EBITDA) 

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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Vertex Pharmaceuticals Inc., EBITDA calculation

US$ in thousands

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12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income (loss) (535,600) 3,619,600 3,322,000 2,342,100 2,711,647
Add: Income tax expense 784,100 760,200 910,400 388,300 405,151
Earnings before tax (EBT) 248,500 4,379,800 4,232,400 2,730,400 3,116,798
Add: Interest expense 30,600 44,100 54,800 61,500 58,151
Earnings before interest and tax (EBIT) 279,100 4,423,900 4,287,200 2,791,900 3,174,949
Add: Depreciation and amortization expenses 207,200 181,300 148,300 125,600 109,515
Earnings before interest, tax, depreciation and amortization (EBITDA) 486,300 4,605,200 4,435,500 2,917,500 3,284,464

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Vertex Pharmaceuticals Inc. EBITDA increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Enterprise Value to EBITDA Ratio, Current

Vertex Pharmaceuticals Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in thousands)
Enterprise value (EV) 120,519,901
Earnings before interest, tax, depreciation and amortization (EBITDA) 486,300
Valuation Ratio
EV/EBITDA 247.83
Benchmarks
EV/EBITDA, Competitors1
AbbVie Inc. 28.44
Amgen Inc. 15.95
Bristol-Myers Squibb Co. 50.71
Danaher Corp. 22.14
Eli Lilly & Co. 53.20
Gilead Sciences Inc. 35.15
Johnson & Johnson 16.39
Merck & Co. Inc. 9.68
Pfizer Inc. 10.32
Regeneron Pharmaceuticals Inc. 11.92
Thermo Fisher Scientific Inc. 18.65
EV/EBITDA, Sector
Pharmaceuticals, Biotechnology & Life Sciences 21.94
EV/EBITDA, Industry
Health Care 20.04

Based on: 10-K (reporting date: 2024-12-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

Vertex Pharmaceuticals Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 112,787,958 99,322,439 66,152,095 55,209,611 48,644,172
Earnings before interest, tax, depreciation and amortization (EBITDA)2 486,300 4,605,200 4,435,500 2,917,500 3,284,464
Valuation Ratio
EV/EBITDA3 231.93 21.57 14.91 18.92 14.81
Benchmarks
EV/EBITDA, Competitors4
AbbVie Inc. 26.97 20.79 13.31 13.44 21.34
Amgen Inc. 15.31 14.13 12.97 13.22 12.24
Bristol-Myers Squibb Co. 48.23 6.51 9.46 8.65 34.35
Danaher Corp. 22.34 26.41 18.42 21.05 26.68
Eli Lilly & Co. 55.98 85.33 37.74 29.85 23.67
Gilead Sciences Inc. 35.86 10.41 13.89 8.57 24.90
Johnson & Johnson 15.77 16.45 14.78 14.47 18.20
Merck & Co. Inc. 9.90 51.30 13.91 12.18 16.05
Pfizer Inc. 10.60 22.50 6.12 8.64 15.78
Regeneron Pharmaceuticals Inc. 13.55 20.16 15.27 6.68 12.70
Thermo Fisher Scientific Inc. 19.89 21.83 20.25 20.21 18.72
EV/EBITDA, Sector
Pharmaceuticals, Biotechnology & Life Sciences 22.07 22.59 13.58 13.16 18.90
EV/EBITDA, Industry
Health Care 19.95 18.98 13.71 13.87 16.50

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 See details »

2 See details »

3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 112,787,958 ÷ 486,300 = 231.93

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Vertex Pharmaceuticals Inc. EV/EBITDA ratio increased from 2022 to 2023 and from 2023 to 2024.