Stock Analysis on Net

Vertex Pharmaceuticals Inc. (NASDAQ:VRTX)

Common Stock Valuation Ratios (Price Multiples) 

Microsoft Excel

Current Valuation Ratios

Vertex Pharmaceuticals Inc., current price multiples

Microsoft Excel
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) $492.69
No. shares of common stock outstanding 256,789,869
 
Earnings per share (EPS) $-2.09
Operating profit per share $-0.91
Sales per share $42.91
Book value per share (BVPS) $63.90
Valuation Ratios (Price Multiples)
Price to sales (P/S) 11.48 6.43 5.15 2.52 6.16 17.31 4.87 4.44 3.51 2.25 4.91 4.40 5.52 2.30
Price to book value (P/BV) 7.71 109.00 28.06 7.46 2.97 54.95 7.20 5.51 4.87 1.62 2.37 3.81 6.98 5.32

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

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

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Price to earnings (P/E) 30.42 23.02 26.55 20.18
Price to operating profit (P/OP) 28.74 17.75 22.35 19.16
Price to sales (P/S) 10.78 11.16 8.56 8.21 8.82
Price to book value (P/BV) 7.24 6.26 5.50 6.16 6.30

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).

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Vertex Pharmaceuticals Inc. P/S ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Vertex Pharmaceuticals Inc. P/BV ratio increased from 2022 to 2023 and from 2023 to 2024.

Price to Earnings (P/E)

Vertex Pharmaceuticals Inc., historical P/E calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
No. shares of common stock outstanding1 256,789,869 258,307,816 257,091,441 254,576,691 259,960,062
Selected Financial Data (US$)
Net income (loss) (in thousands) (535,600) 3,619,600 3,322,000 2,342,100 2,711,647
Earnings per share (EPS)2 -2.09 14.01 12.92 9.20 10.43
Share price1, 3 462.58 426.29 297.40 244.24 210.50
Valuation Ratio
P/E ratio4 30.42 23.02 26.55 20.18
Benchmarks
P/E Ratio, Competitors5
AbbVie Inc. 79.59 63.84 22.62 22.07 40.17
Amgen Inc. 38.24 23.14 19.56 21.05 18.82
Bristol-Myers Squibb Co. 12.27 23.97 20.92
Danaher Corp. 38.12 39.09 25.65 29.94 44.49
Eli Lilly & Co. 77.63 135.24 50.08 40.66 31.95
Gilead Sciences Inc. 296.57 16.17 22.68 12.36 641.48
Johnson & Johnson 26.92 10.73 22.97 20.93 28.92
Merck & Co. Inc. 13.49 893.99 19.21 14.78 26.72
Pfizer Inc. 18.42 73.42 7.58 11.76 19.62
Regeneron Pharmaceuticals Inc. 17.76 25.99 19.68 8.37 15.09
Thermo Fisher Scientific Inc. 32.03 35.65 30.55 27.35 27.89
P/E Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 45.15 32.80 20.23 19.27 34.89
P/E Ratio, Industry
Health Care 36.74 29.04 21.06 21.09 28.93

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 Data adjusted for splits and stock dividends.

2 2024 Calculation
EPS = Net income (loss) ÷ No. shares of common stock outstanding
= -535,600,000 ÷ 256,789,869 = -2.09

3 Closing price as at the filing date of Vertex Pharmaceuticals Inc. Annual Report.

4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 462.58 ÷ -2.09 =

5 Click competitor name to see calculations.


Price to Operating Profit (P/OP)

Vertex Pharmaceuticals Inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
No. shares of common stock outstanding1 256,789,869 258,307,816 257,091,441 254,576,691 259,960,062
Selected Financial Data (US$)
Income (loss) from operations (in thousands) (232,900) 3,832,000 4,307,400 2,782,100 2,856,290
Operating profit per share2 -0.91 14.84 16.75 10.93 10.99
Share price1, 3 462.58 426.29 297.40 244.24 210.50
Valuation Ratio
P/OP ratio4 28.74 17.75 22.35 19.16
Benchmarks
P/OP Ratio, Competitors5
AbbVie Inc. 37.26 24.34 14.78 14.21 16.32
Amgen Inc. 21.55 19.69 13.40 16.24 14.96
Bristol-Myers Squibb Co. 13.53 18.29 19.84
Danaher Corp. 30.56 35.64 20.97 25.14 36.91
Eli Lilly & Co. 63.73 109.75 43.88 35.70 32.66
Gilead Sciences Inc. 85.65 12.05 14.21 7.76 19.38
Johnson & Johnson 18.20 17.78 17.62 18.68 21.84
Merck & Co. Inc. 11.60 138.56 15.55 15.39 23.89
Pfizer Inc. 11.92 121.63 6.64 12.74 21.12
Regeneron Pharmaceuticals Inc. 19.63 25.39 18.01 7.55 14.82
Thermo Fisher Scientific Inc. 27.65 31.16 25.30 21.07 22.81
P/OP Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 31.13 32.68 15.94 16.68 25.95
P/OP Ratio, Industry
Health Care 24.96 24.91 16.28 17.33 21.54

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 Data adjusted for splits and stock dividends.

2 2024 Calculation
Operating profit per share = Income (loss) from operations ÷ No. shares of common stock outstanding
= -232,900,000 ÷ 256,789,869 = -0.91

3 Closing price as at the filing date of Vertex Pharmaceuticals Inc. Annual Report.

4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 462.58 ÷ -0.91 =

5 Click competitor name to see calculations.


Price to Sales (P/S)

Vertex Pharmaceuticals Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
No. shares of common stock outstanding1 256,789,869 258,307,816 257,091,441 254,576,691 259,960,062
Selected Financial Data (US$)
Revenues (in thousands) 11,020,100 9,869,200 8,930,700 7,574,400 6,205,683
Sales per share2 42.91 38.21 34.74 29.75 23.87
Share price1, 3 462.58 426.29 297.40 244.24 210.50
Valuation Ratio
P/S ratio4 10.78 11.16 8.56 8.21 8.82
Benchmarks
P/S Ratio, Competitors5
AbbVie Inc. 6.04 5.72 4.61 4.53 4.05
Amgen Inc. 4.88 5.78 5.17 5.10 5.64
Bristol-Myers Squibb Co. 2.36 2.19 3.29 3.16 3.16
Danaher Corp. 6.23 7.76 5.79 6.37 7.01
Eli Lilly & Co. 18.25 20.77 10.96 8.01 8.06
Gilead Sciences Inc. 4.98 3.40 3.86 2.85 3.24
Johnson & Johnson 4.26 4.43 4.34 4.66 5.15
Merck & Co. Inc. 3.60 5.43 4.71 3.96 3.93
Pfizer Inc. 2.32 2.61 2.35 3.15 4.42
Regeneron Pharmaceuticals Inc. 5.52 7.84 7.01 4.20 6.24
Thermo Fisher Scientific Inc. 4.73 4.99 4.73 5.39 5.52
P/S Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 5.55 5.89 4.56 4.50 4.90
P/S Ratio, Industry
Health Care 2.29 2.46 2.26 2.39 2.33

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 Data adjusted for splits and stock dividends.

2 2024 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 11,020,100,000 ÷ 256,789,869 = 42.91

3 Closing price as at the filing date of Vertex Pharmaceuticals Inc. Annual Report.

4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 462.58 ÷ 42.91 = 10.78

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Vertex Pharmaceuticals Inc. P/S ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Price to Book Value (P/BV)

Vertex Pharmaceuticals Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
No. shares of common stock outstanding1 256,789,869 258,307,816 257,091,441 254,576,691 259,960,062
Selected Financial Data (US$)
Shareholders’ equity (in thousands) 16,409,600 17,580,400 13,912,700 10,100,000 8,686,815
Book value per share (BVPS)2 63.90 68.06 54.12 39.67 33.42
Share price1, 3 462.58 426.29 297.40 244.24 210.50
Valuation Ratio
P/BV ratio4 7.24 6.26 5.50 6.16 6.30
Benchmarks
P/BV Ratio, Competitors5
AbbVie Inc. 102.40 29.97 15.52 16.53 14.18
Amgen Inc. 26.61 24.94 35.01 18.51 14.53
Bristol-Myers Squibb Co. 6.98 3.35 4.88 4.07 3.55
Danaher Corp. 3.00 3.47 3.64 4.16 3.93
Eli Lilly & Co. 57.93 65.80 29.36 25.28 35.07
Gilead Sciences Inc. 7.36 4.01 4.90 3.65 4.33
Johnson & Johnson 5.30 5.48 5.37 5.90 6.72
Merck & Co. Inc. 4.99 8.68 6.07 5.05 7.46
Pfizer Inc. 1.68 1.75 2.48 3.35 2.98
Regeneron Pharmaceuticals Inc. 2.67 3.96 3.77 3.60 4.81
Thermo Fisher Scientific Inc. 4.09 4.57 4.83 5.18 5.15
P/BV Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 7.03 6.77 5.66 5.72 5.99
P/BV Ratio, Industry
Health Care 5.29 5.25 4.73 4.84 4.63

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 Data adjusted for splits and stock dividends.

2 2024 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 16,409,600,000 ÷ 256,789,869 = 63.90

3 Closing price as at the filing date of Vertex Pharmaceuticals Inc. Annual Report.

4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 462.58 ÷ 63.90 = 7.24

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Vertex Pharmaceuticals Inc. P/BV ratio increased from 2022 to 2023 and from 2023 to 2024.