Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)
Interest Paid, Net of Tax
EV to FCFF Ratio, Current
EV to FCFF Ratio, Historical

Free Cash Flow to The Firm (FCFF)

Vertex Pharmaceuticals Inc., FCFF calculation

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	3,619,600)	3,322,000)	2,342,100)	2,711,647)	1,176,810)
Net noncash charges	183,400)	467,100)	406,600)	596,312)	458,621)
Changes in operating assets and liabilities	(265,700)	340,800)	(105,200)	(54,454)	(66,101)
Net cash provided by operating activities	3,537,300)	4,129,900)	2,643,500)	3,253,505)	1,569,330)
Cash paid for interest, net of tax¹	35,601)	41,056)	48,305)	47,432)	46,888)
Purchases of property and equipment	(200,400)	(204,700)	(235,000)	(259,798)	(75,451)
Free cash flow to the firm (FCFF)	3,372,501)	3,966,256)	2,456,805)	3,041,139)	1,540,767)

Based on: 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), 10-K (reporting date: 2019-12-31).

¹ See details »

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Vertex Pharmaceuticals Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Vertex Pharmaceuticals Inc. FCFF increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Interest Paid, Net of Tax

Vertex Pharmaceuticals Inc., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR¹	17.40%	21.50%	14.20%	13.00%	15.60%
Interest Paid, Net of Tax
Cash paid for interest, before tax	43,100)	52,300)	56,300)	54,520)	55,554)
Less: Cash paid for interest, tax²	7,499)	11,245)	7,995)	7,088)	8,666)
Cash paid for interest, net of tax	35,601)	41,056)	48,305)	47,432)	46,888)

Based on: 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), 10-K (reporting date: 2019-12-31).

¹ See details »

² 2023 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 43,100 × 17.40% = 7,499

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Enterprise Value to FCFF Ratio, Current

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

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	99,322,441)
Free cash flow to the firm (FCFF)	3,372,501)
Valuation Ratio
EV/FCFF	29.45
Benchmarks
EV/FCFF, Competitors¹
AbbVie Inc.	14.30
Amgen Inc.	22.15
Bristol-Myers Squibb Co.	10.51
Danaher Corp.	33.21
Eli Lilly & Co.	661.15
Gilead Sciences Inc.	15.72
Johnson & Johnson	18.87
Merck & Co. Inc.	29.32
Moderna Inc.	—
Pfizer Inc.	30.11
Regeneron Pharmaceuticals Inc.	18.65
Thermo Fisher Scientific Inc.	26.75
EV/FCFF, Sector
Pharmaceuticals, Biotechnology & Life Sciences	27.05
EV/FCFF, Industry
Health Care	23.99

Based on: 10-K (reporting date: 2023-12-31).

¹ Click competitor name to see calculations.

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

Enterprise Value to FCFF Ratio, Historical

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

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	99,322,439)	66,152,095)	55,209,611)	48,644,172)	59,016,872)
Free cash flow to the firm (FCFF)²	3,372,501)	3,966,256)	2,456,805)	3,041,139)	1,540,767)
Valuation Ratio
EV/FCFF³	29.45	16.68	22.47	16.00	38.30
Benchmarks
EV/FCFF, Competitors⁴
AbbVie Inc.	14.89	12.15	13.18	13.95	11.60
Amgen Inc.	22.22	16.01	15.82	14.51	16.05
Bristol-Myers Squibb Co.	9.14	13.87	10.52	11.63	23.39
Danaher Corp.	36.34	25.74	28.25	30.66	37.11
Eli Lilly & Co.	655.33	59.14	38.37	39.01	36.26
Gilead Sciences Inc.	13.41	13.58	8.42	13.60	9.78
Johnson & Johnson	19.30	23.80	21.25	20.75	19.31
Merck & Co. Inc.	37.84	19.09	23.27	34.12	20.46
Moderna Inc.	—	11.76	3.86	29.20	—
Pfizer Inc.	32.24	9.15	8.40	21.74	19.44
Regeneron Pharmaceuticals Inc.	23.99	17.96	9.81	25.74	19.54
Thermo Fisher Scientific Inc.	28.85	31.61	33.14	26.14	28.88
EV/FCFF, Sector
Pharmaceuticals, Biotechnology & Life Sciences	28.47	17.82	15.03	20.02	19.33
EV/FCFF, Industry
Health Care	24.38	17.63	16.41	17.93	18.26

Based on: 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), 10-K (reporting date: 2019-12-31).

¹ See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 99,322,439 ÷ 3,372,501 = 29.45

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Vertex Pharmaceuticals Inc. EV/FCFF ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Vertex Pharmaceuticals Inc. (NASDAQ:VRTX)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical