Vertex Pharmaceuticals Valuation

VRTX Stock  USD 418.01  0.69  0.17%   
At this time, the company appears to be fairly valued. Vertex Pharmaceuticals has a current Real Value of $422.45 per share. The regular price of the company is $418.01. Our model measures the value of Vertex Pharmaceuticals from inspecting the company fundamentals such as Operating Margin of 0.38 %, return on equity of 0.23, and Shares Outstanding of 258.31 M as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend acquiring undervalued stocks and dropping overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
Price Book
6.1343
Enterprise Value
97.4 B
Enterprise Value Ebitda
21.1573
Price Sales
10.9226
Forward PE
25.641
Fairly Valued
Today
418.01
Please note that Vertex Pharmaceuticals' price fluctuation is very steady at this time. Calculation of the real value of Vertex Pharmaceuticals is based on 3 months time horizon. Increasing Vertex Pharmaceuticals' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Vertex Pharmaceuticals is useful when determining the fair value of the Vertex stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Vertex Pharmaceuticals. Since Vertex Pharmaceuticals is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Vertex Stock. However, Vertex Pharmaceuticals' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  418.01 Real  422.45 Target  388.67 Hype  418.01 Naive  424.55
The real value of Vertex Stock, also known as its intrinsic value, is the underlying worth of Vertex Pharmaceuticals Company, which is reflected in its stock price. It is based on Vertex Pharmaceuticals' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Vertex Pharmaceuticals' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Vertex Pharmaceuticals' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
376.21
Downside
422.45
Real Value
423.64
Upside
Estimating the potential upside or downside of Vertex Pharmaceuticals helps investors to forecast how Vertex stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Vertex Pharmaceuticals more accurately as focusing exclusively on Vertex Pharmaceuticals' fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
3.374.054.44
Details
Hype
Prediction
LowEstimatedHigh
416.82418.01419.20
Details
Naive
Forecast
LowNext ValueHigh
423.36424.55425.73
Details
31 Analysts
Consensus
LowTarget PriceHigh
353.69388.67431.42
Details

Vertex Pharmaceuticals Investments

(1.98 Billion)

Vertex Pharmaceuticals Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Vertex Pharmaceuticals's current stock value. Our valuation model uses many indicators to compare Vertex Pharmaceuticals value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Vertex Pharmaceuticals competition to find correlations between indicators driving Vertex Pharmaceuticals's intrinsic value. More Info.
Vertex Pharmaceuticals is rated first in net asset category among related companies. It is rated first in price to sales category among related companies . The ratio of Net Asset to Price To Sales for Vertex Pharmaceuticals is about  2,081,024,664 . Price To Sales Ratio is likely to drop to 10.12 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Vertex Pharmaceuticals by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Vertex Pharmaceuticals' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Vertex Pharmaceuticals' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Vertex Pharmaceuticals' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Vertex Pharmaceuticals and how it compares across the competition.

About Vertex Pharmaceuticals Valuation

The stock valuation mechanism determines the current worth of Vertex Pharmaceuticals on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Vertex Pharmaceuticals. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Vertex Pharmaceuticals based exclusively on its fundamental and basic technical indicators. By analyzing Vertex Pharmaceuticals's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Vertex Pharmaceuticals's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Vertex Pharmaceuticals. We calculate exposure to Vertex Pharmaceuticals's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Vertex Pharmaceuticals's related companies.
Last ReportedProjected for 2024
Gross Profit8.6 BB
Pretax Profit Margin 0.45  0.47 
Operating Profit Margin 0.38  0.40 
Net Profit Margin 0.37  0.39 
Gross Profit Margin 0.87  1.09 

8 Steps to conduct Vertex Pharmaceuticals' Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Vertex Pharmaceuticals' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Vertex Pharmaceuticals' valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Vertex Pharmaceuticals' financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Vertex Pharmaceuticals' revenue streams: Identify Vertex Pharmaceuticals' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Vertex Pharmaceuticals' industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Vertex Pharmaceuticals' growth potential: Evaluate Vertex Pharmaceuticals' management, business model, and growth potential.
  • Determine Vertex Pharmaceuticals' financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Vertex Pharmaceuticals' estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

Vertex Pharmaceuticals Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Vertex Pharmaceuticals does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding260.5 M
Quarterly Earnings Growth Y O Y0.181
Forward Price Earnings25.641

Vertex Pharmaceuticals Current Valuation Indicators

Valuation refers to the process of determining the present value of Vertex Pharmaceuticals and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Vertex we look at many different elements of the entity such as Vertex's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Vertex Pharmaceuticals' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Vertex Pharmaceuticals' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Vertex Pharmaceuticals, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Vertex Pharmaceuticals' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Vertex Pharmaceuticals' worth.
When determining whether Vertex Pharmaceuticals offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Vertex Pharmaceuticals' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Vertex Pharmaceuticals Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Vertex Pharmaceuticals Stock:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Vertex Pharmaceuticals. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate.
For more information on how to buy Vertex Stock please use our How to Invest in Vertex Pharmaceuticals guide.
You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.

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When running Vertex Pharmaceuticals' price analysis, check to measure Vertex Pharmaceuticals' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Vertex Pharmaceuticals is operating at the current time. Most of Vertex Pharmaceuticals' value examination focuses on studying past and present price action to predict the probability of Vertex Pharmaceuticals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Vertex Pharmaceuticals' price. Additionally, you may evaluate how the addition of Vertex Pharmaceuticals to your portfolios can decrease your overall portfolio volatility.
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Is Vertex Pharmaceuticals' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Vertex Pharmaceuticals. If investors know Vertex will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Vertex Pharmaceuticals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.181
Earnings Share
13.9
Revenue Per Share
38.297
Quarterly Revenue Growth
0.093
Return On Assets
0.1317
The market value of Vertex Pharmaceuticals is measured differently than its book value, which is the value of Vertex that is recorded on the company's balance sheet. Investors also form their own opinion of Vertex Pharmaceuticals' value that differs from its market value or its book value, called intrinsic value, which is Vertex Pharmaceuticals' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Vertex Pharmaceuticals' market value can be influenced by many factors that don't directly affect Vertex Pharmaceuticals' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Vertex Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Vertex Pharmaceuticals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vertex Pharmaceuticals' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.