Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Paying user area
Try for free
Vertex Pharmaceuticals Inc. pages available for free this week:
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Vertex Pharmaceuticals Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Historical Valuation Ratios (Summary)
Vertex Pharmaceuticals Inc., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
An analysis of the valuation ratios indicates a period of expansion in market multiples from 2022 through mid-2024, followed by a general contraction and stabilization toward the end of the observed period. The valuation metrics exhibit a high degree of correlation, suggesting that market sentiment has shifted uniformly across different measures of profitability and asset value.
- Earnings and Operating Profit Multiples
- The Price to Earnings (P/E) and Price to Operating Profit (P/OP) ratios demonstrate nearly identical trajectories. Both ratios experienced a decline in 2022, reaching lows of 23.02 and 17.75 respectively by December 31, 2022. This was followed by a steady ascent, peaking in late 2023 and again in late 2025, with P/E reaching 31.58 and P/OP reaching 29.92 by December 31, 2025. A significant correction is observed in the final quarter, with ratios retreating to 24.83 for P/E and 23.01 for P/OP by March 31, 2026.
- Revenue Valuation
- The Price to Sales (P/S) ratio showed a consistent upward trend from March 31, 2022 (8.17), peaking at 12.35 in June 2024. Following this peak, the ratio experienced a sharp decline to 8.42 by June 30, 2025, before fluctuating and settling at 8.82 by March 31, 2026. This pattern suggests a period of heightened market optimism regarding revenue growth that eventually reverted to historical norms.
- Asset Valuation
- The Price to Book Value (P/BV) ratio remained relatively stable between 5.50 and 6.26 from early 2022 through March 2024. A pronounced spike occurred in mid-2024, where the ratio climbed to a peak of 8.64 in June 2024. This outlier period was short-lived, as the ratio trended downward throughout 2025, returning to 5.56 by March 31, 2026, which is consistent with the levels observed at the start of the analysis period.
The synchronization of the peaks across P/S and P/BV in mid-2024, and the subsequent peaks in P/E and P/OP in late 2025, suggests a lagged relationship between the market's valuation of sales/assets and the subsequent realization of earnings. The overall downward trend across all ratios entering 2026 indicates a comprehensive valuation compression.
Price to Earnings (P/E)
Vertex Pharmaceuticals Inc., historical P/E calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Net income (loss) (in thousands) | |||||||||||||||||||||||
| Earnings per share (EPS)2 | |||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/E ratio4 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| P/E Ratio, Competitors5 | |||||||||||||||||||||||
| 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. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2026 Calculation
EPS
= (Net income (loss)Q1 2026
+ Net income (loss)Q4 2025
+ Net income (loss)Q3 2025
+ Net income (loss)Q2 2025)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Vertex Pharmaceuticals Inc. Quarterly or Annual Report.
4 Q1 2026 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The financial data reveals a period of significant volatility in earnings and valuation between March 2022 and March 2026, characterized by a strong initial growth phase, a period of negative earnings, and a subsequent recovery to record profitability.
- Share Price Trajectory
- A general upward trend in share price is observed from March 2022, when the price stood at 253.93 US$, peaking at 499.88 US$ in September 2024. Following this peak, the price experienced a period of fluctuation, dipping to 374.98 US$ in June 2025 before rebounding to 491.47 US$ in December 2025 and eventually settling at 424.36 US$ by March 2026.
- Earnings Per Share (EPS) Dynamics
- Earnings exhibited steady growth from March 2022 (9.58 US$) through March 2024 (15.58 US$). However, a sharp reversal occurred starting in June 2024, with EPS falling into negative territory for four consecutive quarters, reaching a low of -3.85 US$ in March 2025. A recovery began in June 2025 (14.19 US$), with a continued upward trend leading to a period high of 17.09 US$ in March 2026.
- Price-to-Earnings (P/E) Ratio Interpretation
- The P/E ratio remained relatively stable between 23.02 and 28.09 throughout 2022 and most of 2023, peaking at 30.42 in December 2023. Due to the transition to negative earnings between June 2024 and March 2025, the P/E ratio was not applicable during this window. Upon the return to profitability in June 2025, the ratio initially expanded, reaching 31.58 in December 2025, before contracting to 24.83 in March 2026 as earnings growth outpaced the share price decline in the final quarter.
The divergence between share price and earnings during the 2024-2025 period indicates that market valuation remained resilient despite temporary earnings losses. The eventual alignment of record-high EPS with a moderating P/E ratio in early 2026 suggests a transition toward a valuation more closely supported by fundamental earnings performance.
Price to Operating Profit (P/OP)
Vertex Pharmaceuticals Inc., historical P/OP calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Income (loss) from operations (in thousands) | |||||||||||||||||||||||
| Operating profit per share2 | |||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/OP ratio4 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| P/OP Ratio, Competitors5 | |||||||||||||||||||||||
| 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. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2026 Calculation
Operating profit per share
= (Income (loss) from operationsQ1 2026
+ Income (loss) from operationsQ4 2025
+ Income (loss) from operationsQ3 2025
+ Income (loss) from operationsQ2 2025)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Vertex Pharmaceuticals Inc. Quarterly or Annual Report.
4 Q1 2026 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The financial data indicates a period of significant valuation expansion and operational volatility between March 2022 and March 2026. While the share price maintained a general upward trajectory for much of the period, operational profitability experienced a severe temporary contraction before recovering to record highs.
- Share Price Trends
- The share price exhibited a consistent growth pattern from March 2022 ($253.93), reaching a primary peak in the third quarter of 2024 at $499.88. Despite a subsequent decline in early 2025, the price rebounded to $491.47 by December 2025, before settling at $424.36 in March 2026. This overall movement suggests sustained market demand despite intermittent operational setbacks.
- Operating Profit Performance
- Operating profit per share remained relatively stable between $14.84 and $16.75 from June 2022 through March 2024. However, a significant operational downturn occurred between June 2024 and March 2025, during which the company reported consistent quarterly losses, reaching a low of -$2.89 per share in March 2025. A sharp recovery followed in June 2025 ($15.30), with profitability continuing to climb to a period high of $18.44 per share by March 2026.
- Price to Operating Profit (P/OP) Ratio Analysis
- The P/OP ratio fluctuated between 17.75 and 28.74 during the initial 2022-2023 period, indicating an increasing valuation multiple as the share price rose faster than operating profits. The ratio became inapplicable from June 2024 through March 2025 due to negative operating profits. Upon the return to profitability in June 2025, the ratio resumed at 24.50, peaking at 29.92 in September 2025 before compressing to 23.01 in March 2026 as operating profit growth outpaced the share price.
In summary, the data reveals a resilience in market valuation during a year of operational losses. The subsequent recovery in operating profit per share to $18.44 by March 2026, coupled with a moderating P/OP ratio, suggests a transition from a valuation driven by price appreciation to one supported by strengthened fundamental earnings.
Price to Sales (P/S)
Vertex Pharmaceuticals Inc., historical P/S calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Revenues (in thousands) | |||||||||||||||||||||||
| Sales per share2 | |||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/S ratio4 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| P/S Ratio, Competitors5 | |||||||||||||||||||||||
| 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. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2026 Calculation
Sales per share
= (RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025
+ RevenuesQ2 2025)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Vertex Pharmaceuticals Inc. Quarterly or Annual Report.
4 Q1 2026 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The financial data from March 2022 to March 2026 reveals a divergence between steady fundamental growth and volatile market valuation. While sales per share maintained a consistent upward trajectory throughout the period, the price-to-sales (P/S) ratio experienced a cycle of expansion, peak, and subsequent correction.
- Sales Performance Trends
- Sales per share grew linearly and without interruption, rising from 31.07 US$ in March 2022 to 48.14 US$ by March 2026. This represents a sustained increase in the company's revenue generation per unit of equity over the analyzed timeframe.
- Valuation Expansion (March 2022 – June 2024)
- During this period, a multiple expansion is observed. The P/S ratio climbed from 8.17 to a peak of 12.35. The acceleration in share price, which rose from 253.93 US$ to 494.46 US$, significantly outpaced the growth in sales per share, indicating increased market optimism and a higher premium attributed to each dollar of revenue.
- Valuation Contraction (June 2024 – June 2025)
- A notable contraction in the valuation multiple occurred after June 2024. The P/S ratio declined from 12.35 to 8.42 by June 2025. This trend was driven by a decrease in share price to 374.98 US$, which offset the continuing gains in sales per share, suggesting a market correction or a shift in investor risk appetite.
- Recent Volatility and Stabilization (June 2025 – March 2026)
- The final quarters of the period are characterized by fluctuation. The P/S ratio shifted from 8.42 in June 2025 to a peak of 10.40 in December 2025, before settling at 8.82 in March 2026. These movements indicate that while the underlying sales growth remained stable, the market price continued to react to external variables, resulting in a non-linear valuation trend.
Price to Book Value (P/BV)
Vertex Pharmaceuticals Inc., historical P/BV calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Shareholders’ equity (in thousands) | |||||||||||||||||||||||
| Book value per share (BVPS)2 | |||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/BV ratio4 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| P/BV Ratio, Competitors5 | |||||||||||||||||||||||
| 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. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2026 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Vertex Pharmaceuticals Inc. Quarterly or Annual Report.
4 Q1 2026 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The analysis of the valuation ratios from March 2022 through March 2026 reveals a general upward trajectory in both market valuation and book value, punctuated by a period of significant volatility in the Price to Book Value (P/BV) ratio during 2024.
- Price to Book Value (P/BV) Trend
- The P/BV ratio remained relatively stable between 5.50 and 6.26 from March 2022 through March 2024. A sharp deviation occurred in June 2024, where the ratio peaked at 8.64, marking the highest valuation multiple in the observed period. This elevated level persisted through September 2024 (8.24) before gradually moderating back to a range of 5.56 to 7.01 by March 2026.
- Book Value per Share (BVPS) Performance
- A consistent long-term growth pattern is observed in the BVPS, which increased from 42.65 in March 2022 to 76.29 by March 2026. A notable contraction occurred in June 2024, where the BVPS dropped to 57.24 from a previous high of 71.87 in March 2024. Following this dip, the book value resumed a steady quarterly climb.
- Share Price Dynamics
- The share price exhibited a strong bullish trend for the first half of the period, rising from 253.93 in March 2022 to a peak of 499.88 in September 2024. Subsequent periods showed increased volatility, with a significant decline to 374.98 in June 2025, followed by a recovery to 491.47 in December 2025, and a final correction to 424.36 in March 2026.
- Correlation Analysis
- The spike in the P/BV ratio during mid-2024 is directly attributable to the convergence of a sharp decline in book value per share and a simultaneous increase in share price. This suggests that the market valuation became decoupled from the accounting value during this window. The return to a P/BV of 5.56 by March 2026 indicates a normalization of the valuation multiple as book value growth regained momentum and share price volatility stabilized.