VERTEX PHARMACEUTICALS INC / MA
$538.60
−4.02 (−0.74%) · delayed · Nov 13, 2026
Five-year price
52w $412.27 to $568.67
- Market cap
- $136.6B
- Enterprise value
- $131.5B
- P/E
- 35.2×
- 59.6× on 3y avg EPS
- EV / EBIT
- 31.5×
- FCF yield
- 2.3%
- ROIC
- 26.2%
- Debt / equity
- —
- Piotroski F
- 6/9
Value scorecard · FY2025
Does it pass the value tests?
Quality
83
- ●ROIC > 12% (5y avg)5y avg ROIC 48.0%
- ●ROE > 15% (5y avg)5y avg ROE 17.1%
- ○Stable operating marginsMargin volatility 17.3% (σ, 5y)
- ●Earnings convert to cashFCF / net income 98% (5y avg)
- ●Growing revenueRevenue CAGR 5y 14.1%
- ●Shrinking share countDiluted shares -2.1% over 5y
Value
0
- ○P/E below 15P/E 35.2
- ○EV/EBIT below 12EV/EBIT 31.5
- ○FCF yield above 6%FCF yield 2.3%
- ○Price below Graham NumberGraham Number $159.30
- ○P/B below 3P/B 7.3
Safety
100
- –Debt / equity below 0.5D/E n/a
- ●Debt payable in < 4 yrs of earningsNet debt $-5.1B
- ●Interest coverage > 8xCoverage 313.8x
- ●Current ratio > 1.5Current ratio 2.90
- ●Piotroski F-score ≥ 6F-score 6/9
Graham Defensive
43
- ●Adequate size (revenue > $2B)Revenue $12.0B
- ●Strong condition (current ratio ≥ 2)Current ratio 2.90
- ○Earnings stability (no loss, 10y)10 years of data
- ○Uninterrupted dividendsDividends paid every year on record
- ●Earnings growth ≥ 33% (10y, 3y avgs)EPS growth 213%
- ○Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 59.6
- ○P/E × P/B ≤ 22.5Product 435.7
Valuation lab
What do you have to believe?
At $538.60, the market is pricing in about 15.2% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt −$5.1B · 254M shares · 5y revenue CAGR 14.1%
Intrinsic value
$493.68
Price
$538.60
Premium paid
9%
What the price implies
The market is paying for 15.2% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
66% of the value sits beyond year 10.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 1,702 | 2,489 | 3,048 | 4,163 | 6,206 | 7,574 | 8,931 | 9,869 | 11,020 | 12,001 |
| Gross profit | — | — | — | — | — | — | — | — | — | — |
| Operating income | 10 | 123 | 635 | 1,198 | 2,856 | 2,782 | 4,307 | 3,832 | (233) | 4,173 |
| Operating margin | 0.6% | 5.0% | 20.8% | 28.8% | 46.0% | 36.7% | 48.2% | 38.8% | -2.1% | 34.8% |
| Pre-tax income | (67) | (16) | 600 | 1,395 | 3,117 | 2,730 | 4,232 | 4,380 | 249 | 4,643 |
| Income tax | 17 | (107) | (1,487) | 218 | 405 | 388 | 910 | 760 | 784 | 690 |
| Net income | (112) | 263 | 2,097 | 1,177 | 2,712 | 2,342 | 3,322 | 3,620 | (536) | 3,953 |
| EPS (diluted) | -0.46 | 1.04 | 8.09 | 4.51 | 10.29 | 9.01 | 12.82 | 13.89 | -2.08 | 15.32 |
| Diluted shares | 245 | 253 | 259 | 261 | 263 | 260 | 259 | 261 | 258 | 258 |
Who owns it