Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Vertex Pharmaceuticals Inc., FCFE calculation
US$ in thousands
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 financial information reveals fluctuating performance in net cash provided by operating activities and free cash flow to equity (FCFE) over the five-year period. Both metrics demonstrate significant variation year-over-year.
- Net Cash from Operations
- Net cash provided by operating activities increased substantially from US$2,643,500 thousand in 2021 to US$4,129,900 thousand in 2022. A subsequent decrease was observed in 2023, falling to US$3,537,300 thousand. A dramatic shift occurred in 2024, with a net cash *use* of US$492,600 thousand, indicating negative cash flow from operations. This trend reversed in 2025, with cash from operations recovering to US$3,631,400 thousand.
- Free Cash Flow to Equity (FCFE)
- FCFE mirrored the trend in operating cash flow. It rose from US$2,384,100 thousand in 2021 to US$3,839,700 thousand in 2022, then decreased to US$3,292,000 thousand in 2023. A substantial decline resulted in a negative FCFE of US$823,900 thousand in 2024. FCFE partially recovered in 2025, reaching US$3,188,400 thousand, though remaining below the 2022 peak.
The correlation between net cash from operations and FCFE is strong, suggesting that changes in operational cash generation are the primary driver of FCFE fluctuations. The negative values observed in 2024 for both metrics are noteworthy and warrant further investigation to understand the underlying causes. While a recovery is seen in 2025, the levels do not fully return to those experienced in 2022.
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Price to FCFE Ratio, Current
Vertex Pharmaceuticals Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 254,034,190 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | 3,188,400) |
| FCFE per share | 12.55 |
| Current share price (P) | 462.49 |
| Valuation Ratio | |
| P/FCFE | 36.85 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| AbbVie Inc. | 22.22 |
| Amgen Inc. | 80.54 |
| Bristol-Myers Squibb Co. | 15.85 |
| Danaher Corp. | 21.78 |
| Eli Lilly & Co. | 51.56 |
| Gilead Sciences Inc. | 23.38 |
| Johnson & Johnson | 19.56 |
| Merck & Co. Inc. | 12.07 |
| Pfizer Inc. | 17.34 |
| Regeneron Pharmaceuticals Inc. | 21.31 |
| Thermo Fisher Scientific Inc. | 15.03 |
| P/FCFE, Sector | |
| Pharmaceuticals, Biotechnology & Life Sciences | 23.61 |
| P/FCFE, Industry | |
| Health Care | 23.32 |
Based on: 10-K (reporting date: 2025-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Vertex Pharmaceuticals Inc., historical P/FCFE 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$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | 3,188,400) | (823,900) | 3,292,000) | 3,839,700) | 2,384,100) | |
| FCFE per share3 | 12.55 | -3.21 | 12.74 | 14.94 | 9.36 | |
| Share price1, 4 | 491.47 | 462.58 | 426.29 | 297.40 | 244.24 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 39.16 | — | 33.45 | 19.91 | 26.08 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| AbbVie Inc. | 22.73 | 13.57 | 17.37 | 22.66 | 18.76 | |
| Amgen Inc. | 82.34 | 25.50 | 4.71 | 8.32 | 13.52 | |
| Bristol-Myers Squibb Co. | 15.91 | 4.74 | 7.52 | 22.85 | 16.17 | |
| Danaher Corp. | 23.34 | 40.83 | 53.08 | 32.04 | 20.75 | |
| Eli Lilly & Co. | 57.54 | 64.93 | 75.06 | 60.51 | 35.17 | |
| Gilead Sciences Inc. | 23.90 | 12.07 | 12.81 | 15.22 | 12.70 | |
| Johnson & Johnson | 19.79 | 12.67 | 24.31 | 16.73 | 23.28 | |
| Merck & Co. Inc. | 12.91 | 11.32 | 24.48 | 22.40 | 18.72 | |
| Pfizer Inc. | 17.12 | 55.28 | 3.82 | 10.56 | 8.88 | |
| Regeneron Pharmaceuticals Inc. | 21.76 | 22.02 | 28.02 | 25.12 | 10.35 | |
| Thermo Fisher Scientific Inc. | 16.54 | 41.23 | 31.16 | 27.98 | 13.44 | |
| P/FCFE, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 24.91 | 20.01 | 16.93 | 19.44 | 16.49 | |
| P/FCFE, Industry | ||||||
| Health Care | 24.43 | 19.36 | 18.20 | 18.50 | 17.94 | |
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.
3 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 3,188,400,000 ÷ 254,034,190 = 12.55
4 Closing price as at the filing date of Vertex Pharmaceuticals Inc. Annual Report.
5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= 491.47 ÷ 12.55 = 39.16
6 Click competitor name to see calculations.
The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibits fluctuations over the observed period. The share price demonstrates a consistent upward trajectory, while the FCFE per share experiences more variability. Consequently, the P/FCFE ratio shows a dynamic pattern.
- Share Price
- The share price increased from US$244.24 in 2021 to US$491.47 in 2025, indicating a substantial appreciation over the five-year period. The growth was particularly pronounced between 2022 and 2023.
- FCFE per Share
- FCFE per share rose from US$9.36 in 2021 to US$14.94 in 2022, before decreasing to US$12.74 in 2023. A significant decline is observed in 2024, with a negative value of US$-3.21. FCFE per share recovers to US$12.55 in 2025, but remains below the 2022 peak.
- P/FCFE Ratio
- The P/FCFE ratio began at 26.08 in 2021, decreased to 19.91 in 2022, and then increased to 33.45 in 2023. The ratio is not available for 2024, but is reported as 39.16 in 2025. The increase in the ratio from 2023 to 2025 is driven by the share price increase and the recovery in FCFE per share, though the negative FCFE in 2024 likely contributed to volatility.
The negative FCFE per share in 2024 is a notable observation, potentially indicating a year of significant cash outflow relative to equity financing. This warrants further investigation to understand the underlying causes. Despite this, the overall trend suggests increasing investor valuation relative to FCFE, as evidenced by the P/FCFE ratio’s movement from 2021 to 2025.
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