Stock Analysis on Net
Stock Analysis on Net

Vertex Pharmaceuticals Inc. (NASDAQ:VRTX)

This company has been moved to the archive! The financial data has not been updated since February 15, 2024.

Price to FCFE (P/FCFE)

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Free Cash Flow to Equity (FCFE)

Vertex Pharmaceuticals Inc., FCFE calculation

US$ in thousands

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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
Purchases of property and equipment (200,400) (204,700) (235,000) (259,798) (75,451)
Payments on finance leases (44,900) (85,500) (47,000) (42,275) (39,185)
Proceeds from finance leases — — 22,600 13,251 10,046
Free cash flow to equity (FCFE) 3,292,000 3,839,700 2,384,100 2,964,683 1,464,740

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).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Vertex Pharmaceuticals Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Vertex Pharmaceuticals Inc. FCFE increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Price to FCFE Ratio, Current

Vertex Pharmaceuticals Inc., current P/FCFE calculation, comparison to benchmarks

Microsoft Excel
No. shares of common stock outstanding 258,307,816
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands) 3,292,000
FCFE per share 12.74
Current share price (P) 426.29
Valuation Ratio
P/FCFE 33.45
Benchmarks
P/FCFE, Competitors1
AbbVie Inc. 16.59
Amgen Inc. 4.41
Bristol-Myers Squibb Co. 7.58
Eli Lilly & Co. 73.59
Gilead Sciences Inc. 11.66
Johnson & Johnson 23.15
Merck & Co. Inc. 24.12
Pfizer Inc. 3.64
Regeneron Pharmaceuticals Inc. 25.49
Thermo Fisher Scientific Inc. 30.49
Zoetis Inc. 244.99
P/FCFE, Sector
Pharmaceuticals, Biotechnology & Life Sciences 15.65
P/FCFE, Industry
Health Care 16.28

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

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 258,307,816 257,091,441 254,576,691 259,960,062 259,268,593
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)2 3,292,000 3,839,700 2,384,100 2,964,683 1,464,740
FCFE per share3 12.74 14.94 9.36 11.40 5.65
Share price1, 4 426.29 297.40 244.24 210.50 240.09
Valuation Ratio
P/FCFE5 33.45 19.91 26.08 18.46 42.50
Benchmarks
P/FCFE, Competitors6
AbbVie Inc. 17.37 22.66 18.76 13.16 3.64
Amgen Inc. 4.71 8.32 13.52 11.06 33.32
Bristol-Myers Squibb Co. 7.52 22.85 16.17 7.80 5.80
Eli Lilly & Co. 75.06 60.51 35.17 36.62 15.87
Gilead Sciences Inc. 12.81 15.22 12.70 5.98 15.91
Johnson & Johnson 24.31 16.73 23.28 15.60 23.06
Merck & Co. Inc. 24.48 22.40 18.72 17.85 18.08
Pfizer Inc. 3.82 10.56 8.88 — 9.87
Regeneron Pharmaceuticals Inc. 26.52 19.29 10.35 13.30 21.00
Thermo Fisher Scientific Inc. 31.16 27.98 13.44 18.58 46.04
Zoetis Inc. 308.88 29.88 82.45 32.86 51.91
P/FCFE, Sector
Pharmaceuticals, Biotechnology & Life Sciences 16.28 18.90 16.60 16.53 12.31
P/FCFE, Industry
Health Care 16.86 18.40 17.97 17.17 13.58

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 Data adjusted for splits and stock dividends.

2 See details »

3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 3,292,000,000 ÷ 258,307,816 = 12.74

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

5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 426.29 ÷ 12.74 = 33.45

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Vertex Pharmaceuticals Inc. P/FCFE ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.