Vertex Pharmaceuticals Inc (VRTX) Valuation
Historical valuation analysis based on 1279 data points (2021-09-14 to 2026-10-16)
Vertex Pharmaceuticals is a global biotechnology company that discovers and develops small-molecule drugs for the treatment of serious diseases. Its key drugs are Kalydeco, Orkambi, Symdeko, and Tr...
Vertex Pharmaceuticals Inc (VRTX) currently trades at a P/E ratio of 28.75 (historical range: 21.22–35.04, median: 27.33), placing it at the 67th percentile — above its historical average, P/S ratio of 10.06 (range: 6.48–12.63, 60th percentile — above its historical average), EV/EBITDA of 25.71 (range: 22.15–28.44, 53th percentile).
Over the historical period (2021-09-14 to 2026-10-16), Vertex Pharmaceuticals Inc's P/E ratio has expanded by 12% over the observed period (from an average of 26.3 to 29.5).
Vertex Pharmaceuticals Inc trades above its historical valuation range, with most metrics above their median levels.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 28.75 | 27.33 | 67th | above its historical average |
| P/S Ratio | 10.06 | 9.64 | 60th | above its historical average |
| EV/EBITDA | 25.71 | 25.48 | 53th | near its historical average |
| FCF Yield | 3.00% | 3.61% | 18th | expensive relative to its history |
Vertex Pharmaceuticals Inc (VRTX) Valuation & P/E History
Vertex Pharmaceuticals Inc (VRTX) is a US-listed stock operating in the Healthcare sector, specifically the Biotechnology industry currently trading at $502.00 with a market capitalization of $127.2 billion. This page provides historical valuation analysis for VRTX based on 1279 data points covering 2021-09-14 to 2026-10-16. The P/E ratio of 28.75 is above the historical median of 27.33, placing VRTX at the 67th percentile of its valuation range. The P/S ratio of 10.06 compares to a median of 9.64.
VRTX Valuation Metrics & Historical Range
The valuation table above shows Vertex Pharmaceuticals Inc's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether VRTX is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests VRTX is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Vertex Pharmaceuticals Inc.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is VRTX Overvalued or Undervalued?
Vertex Pharmaceuticals Inc trades above its historical valuation range, with most metrics above their median levels. The overall valuation percentile of 60 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive VRTX is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full VRTX analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.VRTX trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.