# Vertex Pharmaceuticals Incorporated (VRTX) fundamentals

Data as of 2026-11-04. NASDAQ, United States. Sector: Healthcare / Biotechnology. Price $530.76, market value $134.5 billion.

## Valuation
- **P/E (trailing): 35.6×** (5-yr avg 26.4×, 3-yr avg 29.4×). Vertex Pharmaceuticals Incorporated trades at 35.6× trailing earnings, well above its own five-year average of 26.4×: investors are paying up relative to the company's past. The Healthcare median in the September 2026 study was 28.5×. Forward P/E is 26.5×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.03**. A PEG of 0.03 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 10.7×**. Each dollar of revenue is priced at 10.7×, a level that requires very high margins or very fast growth to justify.
- **Price / book: 7.2×**. The shares trade at 7.2× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **Free-cash-flow yield: 2.8%** (5-yr avg 2.9%). Free cash flow equals 2.8% of the market value, in line with its five-year average of 2.9%.
- **Earnings yield: 2.8%**. The inverse of the P/E: 2.8% of the price is earned each year.

## Profitability
- **Operating margin: 38.0%**. 38.0% of revenue is left after running the business, an exceptional level.
- **Net margin: 32.9%**. 32.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 21.2%**. 21.2% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on assets: 17.2%**. Each dollar of assets produces 17.2% of profit.

## Growth
- **Revenue growth (1 yr): 8.9%** (3-yr 10.4%/yr, 5-yr 14.1%/yr). Revenue grew 8.9% over the last year, against 14.1% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 836.5%** (3-yr 6.1%/yr, 5-yr 8.3%/yr). Earnings per share rose 836.5%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): -6.6%/yr**. Free cash flow has compounded at -6.6% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Current ratio: 2.90** (quick 2.90). Current assets cover the next year's liabilities 2.90 times.
- **Altman Z-score: 13.94**. A Z-score of 13.94 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Vertex Pharmaceuticals Incorporated does not currently pay a dividend.

## Analyst view
- **Analyst consensus: buy** (28 analysts). 28 analysts cover Vertex Pharmaceuticals Incorporated; the consensus is buy, with an average price target of $571.46 (+8% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 30.0%** (YTD 22.0%, 3-mo 17.5%). The shares are up 30.0% over twelve months including dividends.
- **From 52-week high: -6.7%** (31.6% above the low). Trading 7% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 64**. An RSI of 64 is neutral.
- **Beta (1 yr): 0.44** (volatility 29%). Beta of 0.44 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=VRTX · Page: https://foliofundamentals.com/stocks/vrtx

Not investment advice.