Vertex Pharmaceuticals Inc., FCFF calculation

US$ in thousands

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)
Net noncash charges	557,800)	183,400)	467,100)	406,600)	596,312)
Changes in operating assets and liabilities	(514,800)	(265,700)	340,800)	(105,200)	(54,454)
Net cash provided by (used in) operating activities	(492,600)	3,537,300)	4,129,900)	2,643,500)	3,253,505)
Cash paid for interest, net of tax¹	24,095)	35,601)	41,056)	48,305)	47,432)
Purchases of property and equipment	(297,700)	(200,400)	(204,700)	(235,000)	(259,798)
Free cash flow to the firm (FCFF)	(766,205)	3,372,501)	3,966,256)	2,456,805)	3,041,139)

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).

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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 decreased from 2022 to 2023 and from 2023 to 2024.

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

US$ in thousands

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Effective Income Tax Rate (EITR)
EITR¹	21.00%	17.40%	21.50%	14.20%	13.00%
Interest Paid, Net of Tax
Cash paid for interest, before tax	30,500)	43,100)	52,300)	56,300)	54,520)
Less: Cash paid for interest, tax²	6,405)	7,499)	11,245)	7,995)	7,088)
Cash paid for interest, net of tax	24,095)	35,601)	41,056)	48,305)	47,432)

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 2024 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 30,500 × 21.00% = 6,405

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

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	123,295,799)
Free cash flow to the firm (FCFF)	(766,205)
Valuation Ratio
EV/FCFF	—
Benchmarks
EV/FCFF, Competitors¹
AbbVie Inc.	20.11
Amgen Inc.	15.25
Bristol-Myers Squibb Co.	9.05
Danaher Corp.	27.81
Eli Lilly & Co.	204.98
Gilead Sciences Inc.	13.35
Johnson & Johnson	17.99
Merck & Co. Inc.	12.36
Pfizer Inc.	14.29
Regeneron Pharmaceuticals Inc.	14.76
Thermo Fisher Scientific Inc.	21.37
EV/FCFF, Sector
Pharmaceuticals, Biotechnology & Life Sciences	22.85
EV/FCFF, Industry
Health Care	22.75

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

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.

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

	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)
Free cash flow to the firm (FCFF)²	(766,205)	3,372,501)	3,966,256)	2,456,805)	3,041,139)
Valuation Ratio
EV/FCFF³	—	29.45	16.68	22.47	16.00
Benchmarks
EV/FCFF, Competitors⁴
AbbVie Inc.	20.05	14.89	12.15	13.18	13.95
Amgen Inc.	15.35	22.22	16.01	15.82	14.51
Bristol-Myers Squibb Co.	9.94	9.14	13.87	10.52	11.63
Danaher Corp.	28.93	36.34	25.74	28.25	30.66
Eli Lilly & Co.	200.93	655.33	59.14	38.37	39.01
Gilead Sciences Inc.	14.50	13.41	13.58	8.42	13.60
Johnson & Johnson	18.16	19.30	23.80	21.25	20.75
Merck & Co. Inc.	13.24	37.84	19.09	23.27	34.12
Pfizer Inc.	15.33	32.24	9.15	8.40	21.74
Regeneron Pharmaceuticals Inc.	19.30	23.99	17.96	9.81	25.74
Thermo Fisher Scientific Inc.	26.13	28.85	31.61	33.14	26.14
EV/FCFF, Sector
Pharmaceuticals, Biotechnology & Life Sciences	23.57	27.24	17.95	16.12	19.74
EV/FCFF, Industry
Health Care	23.63	24.95	17.94	17.18	18.55

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/FCFF = EV ÷ FCFF
= 112,787,958 ÷ -766,205 = —

⁴ Click competitor name to see calculations.

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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