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.

Common Stock Valuation Ratios (Price Multiples) 

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Current Valuation Ratios

Vertex Pharmaceuticals Inc., current price multiples

Microsoft Excel
Vertex Pharmaceuticals Inc. AbbVie Inc. Amgen Inc. Bristol-Myers Squibb Co. Eli Lilly & Co. Gilead Sciences Inc. Johnson & Johnson Merck & Co. Inc. Pfizer Inc. Regeneron Pharmaceuticals Inc. Thermo Fisher Scientific Inc. Zoetis Inc. Pharmaceuticals, Biotechnology & Life Sciences Health Care
Selected Financial Data
Current share price (P) $426.29
No. shares of common stock outstanding 258,307,816
Growth rate (g) 23.67%
 
Earnings per share (EPS) $14.01
Next year expected EPS $17.33
Operating profit per share $14.84
Sales per share $38.21
Book value per share (BVPS) $68.06
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 30.42 60.99 21.69 12.38 132.60 14.72 10.22 880.80 69.98 24.99 34.88 28.43 31.37 27.95
Price to next year expected earnings 24.60 76.01 14.98 12.07 89.59 9.03 63.82 20.02 30.44 20.99 28.54 25.35
Price-earnings-growth (PEG) 1.28 0.48 4.79 2.76 0.78 7.25 1.01 2.39 0.80 3.17 2.72
Price to operating profit (P/OP) 28.74 23.25 18.45 13.65 107.60 10.97 16.94 136.52 667.95 24.41 30.49 22.09 31.66 23.87
Price to sales (P/S) 11.16 5.46 5.42 2.21 20.36 3.10 4.22 5.35 2.53 7.53 4.88 7.80 5.54 2.25
Price to book value (P/BV) 6.26 28.63 23.38 3.38 64.51 3.65 5.22 8.55 1.67 3.80 4.47 13.34 7.15 5.07

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

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, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Price to earnings (P/E) 30.42 23.02 26.55 20.18 52.90
Price to operating profit (P/OP) 28.74 17.75 22.35 19.16 51.98
Price to sales (P/S) 11.16 8.56 8.21 8.82 14.95
Price to book value (P/BV) 6.26 5.50 6.16 6.30 10.23

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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Vertex Pharmaceuticals Inc. P/E ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Vertex Pharmaceuticals Inc. P/OP ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
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 2021 to 2022 and from 2022 to 2023.
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 decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Price to Earnings (P/E)

Vertex Pharmaceuticals Inc., historical P/E 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$)
Net income (in thousands) 3,619,600 3,322,000 2,342,100 2,711,647 1,176,810
Earnings per share (EPS)2 14.01 12.92 9.20 10.43 4.54
Share price1, 3 426.29 297.40 244.24 210.50 240.09
Valuation Ratio
P/E ratio4 30.42 23.02 26.55 20.18 52.90
Benchmarks
P/E Ratio, Competitors5
AbbVie Inc. 63.84 22.62 22.07 40.17 17.82
Amgen Inc. 23.14 19.56 21.05 18.82 17.07
Bristol-Myers Squibb Co. 12.27 23.97 20.92 41.99
Eli Lilly & Co. 135.24 50.08 40.66 31.95 16.19
Gilead Sciences Inc. 16.17 22.68 12.36 641.48 16.45
Johnson & Johnson 10.73 22.97 20.93 28.92 25.99
Merck & Co. Inc. 893.99 19.21 14.78 26.72 20.60
Pfizer Inc. 73.42 7.58 11.76 19.62 11.63
Regeneron Pharmaceuticals Inc. 25.99 19.68 8.37 15.09 19.86
Thermo Fisher Scientific Inc. 35.65 30.55 27.35 27.89 33.36
Zoetis Inc. 35.84 37.68 45.82 48.25 45.89
P/E Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 32.62 20.13 19.00 35.43 20.40
P/E Ratio, Industry
Health Care 28.96 21.26 21.30 29.05 21.25

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 2023 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 3,619,600,000 ÷ 258,307,816 = 14.01

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

4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 426.29 ÷ 14.01 = 30.42

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Vertex Pharmaceuticals Inc. P/E ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Price to Operating Profit (P/OP)

Vertex Pharmaceuticals Inc., historical P/OP 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$)
Income from operations (in thousands) 3,832,000 4,307,400 2,782,100 2,856,290 1,197,566
Operating profit per share2 14.84 16.75 10.93 10.99 4.62
Share price1, 3 426.29 297.40 244.24 210.50 240.09
Valuation Ratio
P/OP ratio4 28.74 17.75 22.35 19.16 51.98
Benchmarks
P/OP Ratio, Competitors5
AbbVie Inc. 24.34 14.78 14.21 16.32 10.82
Amgen Inc. 19.69 13.40 16.24 14.96 13.84
Bristol-Myers Squibb Co. 13.53 18.29 19.84 24.42
Eli Lilly & Co. 109.75 43.88 35.70 32.66 27.08
Gilead Sciences Inc. 12.05 14.21 7.76 19.38 20.66
Johnson & Johnson 17.78 17.62 18.68 21.84 19.83
Merck & Co. Inc. 138.56 15.55 15.39 23.89 17.47
Pfizer Inc. 700.76 6.80 13.30 23.12 14.36
Regeneron Pharmaceuticals Inc. 25.39 18.01 7.55 14.82 19.01
Thermo Fisher Scientific Inc. 31.16 25.30 21.07 22.81 26.84
Zoetis Inc. 27.86 27.31 33.82 35.22 35.00
P/OP Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 32.92 15.91 16.54 26.14 18.21
P/OP Ratio, Industry
Health Care 24.73 16.48 17.58 21.54 17.40

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 2023 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= 3,832,000,000 ÷ 258,307,816 = 14.84

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

4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 426.29 ÷ 14.84 = 28.74

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Vertex Pharmaceuticals Inc. P/OP ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Price to Sales (P/S)

Vertex Pharmaceuticals Inc., historical P/S 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$)
Revenues (in thousands) 9,869,200 8,930,700 7,574,400 6,205,683 4,162,821
Sales per share2 38.21 34.74 29.75 23.87 16.06
Share price1, 3 426.29 297.40 244.24 210.50 240.09
Valuation Ratio
P/S ratio4 11.16 8.56 8.21 8.82 14.95
Benchmarks
P/S Ratio, Competitors5
AbbVie Inc. 5.72 4.61 4.53 4.05 4.22
Amgen Inc. 5.78 5.17 5.10 5.64 6.03
Bristol-Myers Squibb Co. 2.19 3.29 3.16 3.16 5.52
Eli Lilly & Co. 20.77 10.96 8.01 8.06 6.03
Gilead Sciences Inc. 3.40 3.86 2.85 3.24 4.00
Johnson & Johnson 4.43 4.34 4.66 5.15 4.79
Merck & Co. Inc. 5.43 4.71 3.96 3.93 4.33
Pfizer Inc. 2.66 2.37 3.18 4.50 3.66
Regeneron Pharmaceuticals Inc. 7.84 7.01 4.20 6.24 5.34
Thermo Fisher Scientific Inc. 4.99 4.73 5.39 5.52 4.83
Zoetis Inc. 9.83 9.86 12.00 11.84 11.00
P/S Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 5.76 4.50 4.45 4.84 4.80
P/S Ratio, Industry
Health Care 2.33 2.18 2.32 2.26 2.17

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 2023 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 9,869,200,000 ÷ 258,307,816 = 38.21

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

4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 426.29 ÷ 38.21 = 11.16

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 2021 to 2022 and from 2022 to 2023.

Price to Book Value (P/BV)

Vertex Pharmaceuticals Inc., historical P/BV 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$)
Shareholders’ equity (in thousands) 17,580,400 13,912,700 10,100,000 8,686,815 6,085,244
Book value per share (BVPS)2 68.06 54.12 39.67 33.42 23.47
Share price1, 3 426.29 297.40 244.24 210.50 240.09
Valuation Ratio
P/BV ratio4 6.26 5.50 6.16 6.30 10.23
Benchmarks
P/BV Ratio, Competitors5
AbbVie Inc. 29.97 15.52 16.53 14.18
Amgen Inc. 24.94 35.01 18.51 14.53 13.84
Bristol-Myers Squibb Co. 3.35 4.88 4.07 3.55 2.80
Eli Lilly & Co. 65.80 29.36 25.28 35.07 51.67
Gilead Sciences Inc. 4.01 4.90 3.65 4.33 3.93
Johnson & Johnson 5.48 5.37 5.90 6.72 6.61
Merck & Co. Inc. 8.68 6.07 5.05 7.46 7.83
Pfizer Inc. 1.75 2.48 3.35 2.98 3.00
Regeneron Pharmaceuticals Inc. 3.96 3.77 3.60 4.81 3.79
Thermo Fisher Scientific Inc. 4.57 4.83 5.18 5.15 4.16
Zoetis Inc. 16.81 18.08 20.55 20.97 25.42
P/BV Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 7.44 6.08 6.12 6.47 6.15
P/BV Ratio, Industry
Health Care 5.25 4.78 4.89 4.68 4.49

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 2023 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 17,580,400,000 ÷ 258,307,816 = 68.06

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

4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 426.29 ÷ 68.06 = 6.26

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 decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.