Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Vertex Pharmaceuticals Inc., current price multiples
| Vertex Pharmaceuticals Inc. | AbbVie Inc. | Amgen Inc. | Bristol-Myers Squibb Co. | Danaher Corp. | Eli Lilly & Co. | Gilead Sciences Inc. | Johnson & Johnson | Merck & Co. Inc. | Pfizer Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Pharmaceuticals, Biotechnology & Life Sciences | Health Care | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||
| Current share price (P) | $451.24 | ||||||||||||||||
| No. shares of common stock outstanding | 254,034,190 | ||||||||||||||||
| Growth rate (g) | 17.36% | ||||||||||||||||
| Earnings per share (EPS) | $15.56 | ||||||||||||||||
| Next year expected EPS | $18.26 | ||||||||||||||||
| Operating profit per share | $16.43 | ||||||||||||||||
| Sales per share | $47.24 | ||||||||||||||||
| Book value per share (BVPS) | $73.48 | ||||||||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||||||||
| Price to earnings (P/E) | 29.00 | 85.74 | 24.45 | 16.46 | 37.18 | 41.62 | 20.03 | 21.17 | 15.67 | 19.59 | 17.28 | 26.49 | 26.78 | 26.26 | |||
| Price to next year expected earnings | 24.71 | 464.79 | 18.13 | 14.99 | 34.28 | 31.93 | 27.55 | 18.63 | — | 21.19 | 14.69 | 23.37 | 24.49 | 23.93 | |||
| Price-earnings-growth (PEG) | 1.67 | — | 0.70 | 1.68 | 4.40 | 1.37 | — | 1.56 | — | — | 0.98 | 1.98 | 2.86 | 2.69 | |||
| Price to operating profit (P/OP) | 27.47 | 24.04 | 20.77 | 11.61 | 28.65 | 32.66 | 17.01 | 22.44 | 13.48 | 10.69 | 21.76 | 22.93 | 21.18 | 20.52 | |||
| Price to sales (P/S) | 9.55 | 5.92 | 5.36 | 2.41 | 5.47 | 13.18 | 5.90 | 6.02 | 4.40 | 2.43 | 5.43 | 3.99 | 5.77 | 3.10 | |||
| Price to book value (P/BV) | 6.14 | — | 21.78 | 6.28 | 2.56 | 32.37 | 7.51 | 6.96 | 5.44 | 1.76 | 2.49 | 3.33 | 7.13 | 5.64 | |||
Based on: 10-K (reporting date: 2025-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Vertex Pharmaceuticals Inc., historical price multiples
Based on: 10-K (reporting date: 2025-12-31), 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).
The valuation ratios exhibit varied trends over the observed period. Generally, ratios increased from 2022 to 2023, with some leveling off or slight decreases in the most recent year where information is available.
- Price to Earnings (P/E)
- The Price to Earnings ratio decreased from 26.55 in 2021 to 23.02 in 2022, then increased substantially to 30.42 in 2023. The ratio remains elevated at 31.58 in 2025, suggesting a higher valuation relative to earnings. The absence of a 2024 value prevents assessment of any recent changes.
- Price to Operating Profit (P/OP)
- Similar to the P/E ratio, Price to Operating Profit decreased from 22.35 in 2021 to 17.75 in 2022, followed by a significant increase to 28.74 in 2023. The ratio is reported as 29.92 in 2025. A 2024 value is missing, hindering a complete trend analysis.
- Price to Sales (P/S)
- The Price to Sales ratio demonstrates a consistent upward trend from 8.21 in 2021 to 11.16 in 2023. The ratio then decreased slightly to 10.78 in 2024 and further to 10.40 in 2025, indicating a potential stabilization after a period of growth. This suggests investors were willing to pay more for each dollar of revenue, but that premium has begun to moderate.
- Price to Book Value (P/BV)
- The Price to Book Value ratio decreased from 6.16 in 2021 to 5.50 in 2022, then increased to 6.26 in 2023 and 7.24 in 2024. The ratio decreased slightly to 6.69 in 2025. This indicates a fluctuating valuation relative to net asset value, with a recent peak in 2024 followed by a modest decline.
Overall, the observed ratios suggest an increasing valuation from 2022 through 2023, followed by a potential stabilization or slight moderation in 2024 and 2025. The lack of a 2024 value for P/E and P/OP limits a complete understanding of the most recent trends.
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Price to Earnings (P/E)
Vertex Pharmaceuticals Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 254,034,190 | 256,789,869 | 258,307,816 | 257,091,441 | 254,576,691 | |
| Selected Financial Data (US$) | ||||||
| Net income (loss) (in thousands) | 3,953,200) | (535,600) | 3,619,600) | 3,322,000) | 2,342,100) | |
| Earnings per share (EPS)2 | 15.56 | -2.09 | 14.01 | 12.92 | 9.20 | |
| Share price1, 3 | 491.47 | 462.58 | 426.29 | 297.40 | 244.24 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 31.58 | — | 30.42 | 23.02 | 26.55 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| AbbVie Inc. | 94.06 | 79.59 | 63.84 | 22.62 | 22.07 | |
| Amgen Inc. | 25.81 | 38.24 | 23.14 | 19.56 | 21.05 | |
| Bristol-Myers Squibb Co. | 17.30 | — | 12.27 | 23.97 | 20.92 | |
| Danaher Corp. | 40.93 | 38.12 | 39.09 | 25.65 | 29.94 | |
| Eli Lilly & Co. | 47.45 | 77.63 | 135.24 | 50.08 | 40.66 | |
| Gilead Sciences Inc. | 21.54 | 296.57 | 16.17 | 22.68 | 12.36 | |
| Johnson & Johnson | 21.66 | 26.92 | 10.73 | 22.97 | 20.93 | |
| Merck & Co. Inc. | 16.79 | 13.49 | 893.99 | 19.21 | 14.78 | |
| Pfizer Inc. | 19.83 | 18.42 | 73.42 | 7.58 | 11.76 | |
| Regeneron Pharmaceuticals Inc. | 18.19 | 17.76 | 25.99 | 19.68 | 8.37 | |
| Thermo Fisher Scientific Inc. | 28.82 | 32.03 | 35.65 | 30.55 | 27.35 | |
| P/E Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 28.98 | 45.15 | 32.80 | 20.23 | 19.27 | |
| P/E Ratio, Industry | ||||||
| Health Care | 28.31 | 38.03 | 30.62 | 21.22 | 21.55 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
EPS = Net income (loss) ÷ No. shares of common stock outstanding
= 3,953,200,000 ÷ 254,034,190 = 15.56
3 Closing price as at the filing date of Vertex Pharmaceuticals Inc. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= 491.47 ÷ 15.56 = 31.58
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibited fluctuating behavior over the observed period. Initial values indicated a decrease followed by an increase, then a significant anomaly, and a subsequent recovery. The share price demonstrated a consistent upward trajectory, while earnings per share (EPS) experienced more volatility.
- P/E Ratio Trend
- The P/E ratio began at 26.55 in 2021, decreased to 23.02 in 2022, and then increased to 30.42 in 2023. A substantial disruption occurred in 2024, with the P/E ratio not being calculable due to negative earnings per share. The ratio recovered to 31.58 in 2025.
- Share Price Trend
- The share price consistently increased throughout the period. From $244.24 in 2021, it rose to $297.40 in 2022, $426.29 in 2023, $462.58 in 2024, and finally reached $491.47 in 2025. This indicates sustained investor confidence or market factors driving price appreciation.
- Earnings Per Share (EPS) Trend
- EPS increased from $9.20 in 2021 to $12.92 in 2022 and further to $14.01 in 2023. However, a significant decline occurred in 2024, resulting in a negative EPS of -$2.09. EPS then rebounded strongly to $15.56 in 2025, exceeding the 2023 level.
- Relationship between P/E, Share Price, and EPS
- The P/E ratio’s movements largely reflect the interplay between share price and EPS. The increase in the P/E ratio from 2022 to 2023 coincided with increases in both share price and EPS. The uncalculable P/E in 2024 is directly attributable to the negative EPS, despite the continued increase in share price. The subsequent rise in the P/E ratio in 2025 is driven by the recovery in EPS and the continued, albeit slower, growth in share price.
The volatility in EPS significantly impacted the P/E ratio, highlighting the sensitivity of this valuation metric to earnings fluctuations. The consistent increase in share price suggests factors beyond current earnings may be influencing valuation.
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Price to Operating Profit (P/OP)
Vertex Pharmaceuticals Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 254,034,190 | 256,789,869 | 258,307,816 | 257,091,441 | 254,576,691 | |
| Selected Financial Data (US$) | ||||||
| Income (loss) from operations (in thousands) | 4,173,300) | (232,900) | 3,832,000) | 4,307,400) | 2,782,100) | |
| Operating profit per share2 | 16.43 | -0.91 | 14.84 | 16.75 | 10.93 | |
| Share price1, 3 | 491.47 | 462.58 | 426.29 | 297.40 | 244.24 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 29.92 | — | 28.74 | 17.75 | 22.35 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| AbbVie Inc. | 26.37 | 37.26 | 24.34 | 14.78 | 14.21 | |
| Amgen Inc. | 21.92 | 21.55 | 19.69 | 13.40 | 16.24 | |
| Bristol-Myers Squibb Co. | 12.20 | — | 13.53 | 18.29 | 19.84 | |
| Danaher Corp. | 31.54 | 30.56 | 35.64 | 20.97 | 25.14 | |
| Eli Lilly & Co. | 37.24 | 63.73 | 109.75 | 43.88 | 35.70 | |
| Gilead Sciences Inc. | 18.29 | 85.65 | 12.05 | 14.21 | 7.76 | |
| Johnson & Johnson | 22.95 | 18.20 | 17.78 | 17.62 | 18.68 | |
| Merck & Co. Inc. | 14.44 | 11.60 | 138.56 | 15.55 | 15.39 | |
| Pfizer Inc. | 10.82 | 11.92 | 121.63 | 6.64 | 12.74 | |
| Regeneron Pharmaceuticals Inc. | 22.90 | 19.63 | 25.39 | 18.01 | 7.55 | |
| Thermo Fisher Scientific Inc. | 24.94 | 27.65 | 31.16 | 25.30 | 21.07 | |
| P/OP Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 22.92 | 31.13 | 32.68 | 15.94 | 16.68 | |
| P/OP Ratio, Industry | ||||||
| Health Care | 22.12 | 26.90 | 27.48 | 16.58 | 18.20 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Operating profit per share = Income (loss) from operations ÷ No. shares of common stock outstanding
= 4,173,300,000 ÷ 254,034,190 = 16.43
3 Closing price as at the filing date of Vertex Pharmaceuticals Inc. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 491.47 ÷ 16.43 = 29.92
5 Click competitor name to see calculations.
The price to operating profit ratio exhibited volatility over the observed period. Initial values decreased, followed by an increase, and then a significant fluctuation including a negative value, before stabilizing at a high level. The share price consistently increased throughout the period, while operating profit per share experienced more variation.
- Price to Operating Profit (P/OP)
- The P/OP ratio began at 22.35 in 2021, decreasing to 17.75 in 2022. A substantial increase was then observed, with the ratio reaching 28.74 in 2023. The ratio is not available for 2024, but in 2025 it stood at 29.92. This suggests increasing investor valuation relative to each dollar of operating profit, particularly in the latter years of the period.
- Share Price
- The share price demonstrated a consistent upward trend, increasing from US$244.24 in 2021 to US$491.47 in 2025. This represents a significant overall appreciation in the company’s stock value during the analyzed timeframe.
- Operating Profit Per Share
- Operating profit per share increased from US$10.93 in 2021 to US$16.75 in 2022. It then decreased to US$14.84 in 2023, followed by a negative value of -US$0.91 in 2024. The value recovered to US$16.43 in 2025. This indicates considerable fluctuation in profitability on a per-share basis.
The divergence between the consistently rising share price and the fluctuating operating profit per share suggests that investor expectations and other factors beyond current earnings are significantly influencing the stock’s valuation. The negative operating profit per share in 2024 likely contributed to the missing P/OP ratio for that year, and highlights a period of potential financial challenge.
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Price to Sales (P/S)
Vertex Pharmaceuticals Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 254,034,190 | 256,789,869 | 258,307,816 | 257,091,441 | 254,576,691 | |
| Selected Financial Data (US$) | ||||||
| Revenues (in thousands) | 12,001,300) | 11,020,100) | 9,869,200) | 8,930,700) | 7,574,400) | |
| Sales per share2 | 47.24 | 42.91 | 38.21 | 34.74 | 29.75 | |
| Share price1, 3 | 491.47 | 462.58 | 426.29 | 297.40 | 244.24 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 10.40 | 10.78 | 11.16 | 8.56 | 8.21 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| AbbVie Inc. | 6.50 | 6.04 | 5.72 | 4.61 | 4.53 | |
| Amgen Inc. | 5.66 | 4.88 | 5.78 | 5.17 | 5.10 | |
| Bristol-Myers Squibb Co. | 2.53 | 2.36 | 2.19 | 3.29 | 3.16 | |
| Danaher Corp. | 6.02 | 6.23 | 7.76 | 5.79 | 6.37 | |
| Eli Lilly & Co. | 15.03 | 18.25 | 20.77 | 10.96 | 8.01 | |
| Gilead Sciences Inc. | 6.34 | 4.98 | 3.40 | 3.86 | 2.85 | |
| Johnson & Johnson | 6.16 | 4.26 | 4.43 | 4.34 | 4.66 | |
| Merck & Co. Inc. | 4.71 | 3.60 | 5.43 | 4.71 | 3.96 | |
| Pfizer Inc. | 2.46 | 2.32 | 2.61 | 2.35 | 3.15 | |
| Regeneron Pharmaceuticals Inc. | 5.71 | 5.52 | 7.84 | 7.01 | 4.20 | |
| Thermo Fisher Scientific Inc. | 4.34 | 4.73 | 4.99 | 4.73 | 5.39 | |
| P/S Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 6.24 | 5.55 | 5.89 | 4.56 | 4.50 | |
| P/S Ratio, Industry | ||||||
| Health Care | 3.34 | 3.36 | 3.52 | 3.11 | 3.28 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 12,001,300,000 ÷ 254,034,190 = 47.24
3 Closing price as at the filing date of Vertex Pharmaceuticals Inc. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= 491.47 ÷ 47.24 = 10.40
5 Click competitor name to see calculations.
The price-to-sales ratio exhibited an increasing trend from 2021 to 2023, followed by a stabilization and slight decline in the subsequent two years. This suggests a shifting valuation dynamic over the observed period.
- Price-to-Sales Ratio Trend
- The price-to-sales ratio increased from 8.21 in 2021 to 11.16 in 2023, representing a 36% increase over the three-year period. This indicates that investors were willing to pay a progressively higher premium for each dollar of sales generated by the company during this time. The ratio then decreased to 10.78 in 2024 and further to 10.40 in 2025, suggesting a moderation in investor enthusiasm or a reassessment of growth prospects.
- Share Price and Sales per Share
- Both share price and sales per share consistently increased throughout the five-year period. The share price rose from US$244.24 in 2021 to US$491.47 in 2025, a more than 100% increase. Sales per share increased from US$29.75 to US$47.24, a 59% increase. The slower growth in sales per share relative to the share price contributed to the initial increase and subsequent stabilization of the price-to-sales ratio.
The observed leveling off of the price-to-sales ratio in 2024 and 2025, despite continued growth in both share price and sales per share, could indicate that the market’s expectations for future sales growth are moderating, or that the share price is increasing at a rate that is not fully supported by sales growth. Further investigation into the company’s growth forecasts and competitive landscape would be necessary to determine the underlying drivers of this trend.
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Price to Book Value (P/BV)
Vertex Pharmaceuticals Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 254,034,190 | 256,789,869 | 258,307,816 | 257,091,441 | 254,576,691 | |
| Selected Financial Data (US$) | ||||||
| Shareholders’ equity (in thousands) | 18,665,800) | 16,409,600) | 17,580,400) | 13,912,700) | 10,100,000) | |
| Book value per share (BVPS)2 | 73.48 | 63.90 | 68.06 | 54.12 | 39.67 | |
| Share price1, 3 | 491.47 | 462.58 | 426.29 | 297.40 | 244.24 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 6.69 | 7.24 | 6.26 | 5.50 | 6.16 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| AbbVie Inc. | — | 102.40 | 29.97 | 15.52 | 16.53 | |
| Amgen Inc. | 22.99 | 26.61 | 24.94 | 35.01 | 18.51 | |
| Bristol-Myers Squibb Co. | 6.61 | 6.98 | 3.35 | 4.88 | 4.07 | |
| Danaher Corp. | 2.82 | 3.00 | 3.47 | 3.64 | 4.16 | |
| Eli Lilly & Co. | 36.91 | 57.93 | 65.80 | 29.36 | 25.28 | |
| Gilead Sciences Inc. | 8.07 | 7.36 | 4.01 | 4.90 | 3.65 | |
| Johnson & Johnson | 7.12 | 5.30 | 5.48 | 5.37 | 5.90 | |
| Merck & Co. Inc. | 5.82 | 4.99 | 8.68 | 6.07 | 5.05 | |
| Pfizer Inc. | 1.78 | 1.68 | 1.75 | 2.48 | 3.35 | |
| Regeneron Pharmaceuticals Inc. | 2.62 | 2.67 | 3.96 | 3.77 | 3.60 | |
| Thermo Fisher Scientific Inc. | 3.62 | 4.09 | 4.57 | 4.83 | 5.18 | |
| P/BV Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 7.72 | 7.03 | 6.77 | 5.66 | 5.72 | |
| P/BV Ratio, Industry | ||||||
| Health Care | 6.08 | 5.99 | 5.94 | 5.26 | 5.48 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 18,665,800,000 ÷ 254,034,190 = 73.48
3 Closing price as at the filing date of Vertex Pharmaceuticals Inc. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= 491.47 ÷ 73.48 = 6.69
5 Click competitor name to see calculations.
The price to book value ratio for the period demonstrates fluctuations over the five-year span. Initially, the ratio decreased before exhibiting an upward trend, followed by a slight decline in the most recent year presented.
- Price to Book Value (P/BV) Trend
- The P/BV ratio began at 6.16 in 2021. A decrease was observed in 2022, with the ratio falling to 5.50. The ratio then increased to 6.26 in 2023, continuing upward to 7.24 in 2024, representing the highest value within the observed period. In 2025, the ratio experienced a slight decrease to 6.69.
The share price consistently increased throughout the period, moving from US$244.24 in 2021 to US$491.47 in 2025. Simultaneously, the book value per share also generally increased, rising from US$39.67 to US$73.48 over the same timeframe. However, the rate of increase in share price did not consistently align with the rate of increase in book value per share, contributing to the observed fluctuations in the P/BV ratio.
- Relationship between Share Price and Book Value
- While both share price and book value per share increased, the P/BV ratio’s movement suggests that investor sentiment and market expectations regarding the company’s future earnings potential, relative to its book value, have shifted over the period. The peak in 2024 indicates a period of heightened optimism or increased growth expectations. The subsequent decline in 2025 suggests a moderation of these expectations.
The P/BV ratio remained above 5.0 throughout the period, indicating that the market consistently valued the company at more than five times its book value. This suggests investors perceived the company’s assets as generating returns exceeding their stated book value, or anticipated future growth not fully reflected in the book value.
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