Latest Ratios: P/E Ratio 35.1x · EV/EBITDA 29.5x · ROE 22.5%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $138.9B | $117.0B | $103.9B | $106.0B | $74.8B | $57.1B | $62.3B | $57.1B | $42.9B | $37.9B | $18.0B |
| Enterprise Value | $137.6B | $115.8B | $101.0B | $96.4B | $65.2B | $51.2B | $57.2B | $54.6B | $40.9B | $36.9B | $17.7B |
| P/E Ratio → | 35.12 | 29.59 | — | 29.29 | 22.53 | 24.37 | 22.97 | 48.55 | 20.48 | 144.10 | — |
| P/S Ratio | 10.69 | 9.69 | 9.42 | 10.74 | 8.38 | 7.54 | 10.03 | 13.71 | 14.09 | 15.25 | 10.59 |
| P/B Ratio | 7.56 | 6.27 | 6.33 | 6.03 | 5.38 | 5.65 | 7.17 | 9.38 | 9.68 | 18.58 | 13.47 |
| P/FCF | 43.36 | 36.62 | — | 32.33 | 19.06 | 23.70 | 20.79 | 38.21 | 36.56 | 64.81 | 100.40 |
| P/OCF | 38.24 | 32.21 | — | 29.96 | 18.12 | 21.59 | 19.13 | 36.37 | 33.81 | 44.91 | 76.35 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 9.59 | 9.17 | 9.77 | 7.30 | 6.77 | 9.22 | 13.12 | 13.42 | 14.82 | 10.39 |
| EV / EBITDA | 29.45 | 23.29 | — | 24.03 | 14.64 | 17.62 | 19.28 | 41.88 | 57.78 | 199.79 | 247.89 |
| EV / EBIT | 28.91 | 24.86 | 362.01 | 21.80 | 15.21 | 18.36 | 18.01 | 37.58 | 60.78 | 688.12 | 1257.13 |
| EV / FCF | — | 36.25 | — | 29.41 | 16.62 | 21.28 | 19.10 | 36.57 | 34.80 | 63.00 | 98.49 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 85.0% | 85.0% | 86.1% | 87.2% | 87.9% | 88.1% | 88.1% | 86.8% | 86.6% | 88.9% | 87.6% |
| Operating Margin | 39.4% | 39.4% | -2.1% | 38.8% | 48.2% | 36.7% | 46.0% | 28.8% | 20.8% | 5.0% | 0.6% |
| Net Profit Margin | 32.7% | 32.7% | -4.9% | 36.7% | 37.2% | 30.9% | 43.7% | 28.3% | 68.8% | 10.6% | -6.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 22.5% | 22.5% | -3.2% | 23.0% | 27.7% | 24.9% | 36.7% | 22.4% | 64.7% | 15.6% | -9.2% |
| ROA | 16.2% | 16.2% | -2.4% | 17.7% | 21.0% | 18.6% | 27.0% | 16.2% | 42.8% | 8.2% | -4.2% |
| ROIC | 23.0% | 23.0% | -1.6% | 46.6% | 75.3% | 52.8% | 58.9% | 29.9% | 28.4% | 9.3% | 0.7% |
| ROCE | 23.1% | 23.1% | -1.2% | 22.2% | 32.3% | 26.3% | 33.9% | 19.8% | 16.2% | 5.1% | 0.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.21 | 0.21 | 0.11 | 0.05 | 0.06 | 0.10 | 0.11 | 0.11 | 0.13 | 0.30 | 0.63 |
| Debt / EBITDA | 0.78 | 0.78 | — | 0.20 | 0.20 | 0.33 | 0.31 | 0.51 | 0.83 | 3.28 | 11.79 |
| Net Debt / Equity | — | -0.06 | -0.17 | -0.54 | -0.69 | -0.58 | -0.58 | -0.40 | -0.47 | -0.52 | -0.26 |
| Net Debt / EBITDA | -0.24 | -0.24 | — | -2.38 | -2.16 | -2.00 | -1.70 | -1.88 | -2.92 | -5.74 | -4.81 |
| Debt / FCF | — | -0.38 | — | -2.92 | -2.45 | -2.42 | -1.69 | -1.64 | -1.76 | -1.81 | -1.91 |
| Interest Coverage | 350.11 | 350.11 | 9.12 | 100.32 | 78.23 | 45.40 | 54.60 | 24.84 | 19.72 | 0.77 | 0.17 |
Net cash position: cash ($5.1B) exceeds total debt ($3.9B)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.90 | 2.90 | 2.69 | 3.99 | 4.83 | 4.46 | 4.33 | 3.61 | 3.43 | 3.28 | 2.31 |
| Quick Ratio | 2.46 | 2.46 | 2.35 | 3.78 | 4.66 | 4.30 | 4.18 | 3.49 | 3.32 | 3.14 | 2.21 |
| Cash Ratio | 1.71 | 1.71 | 1.72 | 3.16 | 3.93 | 3.51 | 3.55 | 2.85 | 2.83 | 2.59 | 1.81 |
| Asset Turnover | — | 0.46 | 0.49 | 0.43 | 0.49 | 0.56 | 0.53 | 0.50 | 0.49 | 0.70 | 0.59 |
| Inventory Turnover | 1.07 | 1.07 | 1.27 | 1.71 | 2.35 | 2.56 | 2.62 | 3.27 | 3.29 | 2.46 | 2.71 |
| Days Sales Outstanding | — | 62.05 | 53.31 | 57.82 | 58.94 | 54.78 | 52.08 | 55.55 | 49.07 | 56.61 | 50.49 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.8% | 3.4% | — | 3.4% | 4.4% | 4.1% | 4.4% | 2.1% | 4.9% | 0.7% | — |
| FCF Yield | 2.3% | 2.7% | — | 3.1% | 5.2% | 4.2% | 4.8% | 2.6% | 2.7% | 1.5% | 1.0% |
| Buyback Yield | 1.5% | 1.7% | 1.1% | 0.4% | 0.2% | 2.5% | 0.9% | 0.3% | 0.8% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.5% | 1.7% | 1.1% | 0.4% | 0.2% | 2.5% | 0.9% | 0.3% | 0.8% | 0.0% | 0.0% |
| Shares Outstanding | — | $258M | $258M | $261M | $259M | $260M | $263M | $261M | $259M | $253M | $245M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying VRTX stock.
Vertex Pharmaceuticals Incorporated's current P/E ratio is 35.1x. The historical average is 42.7x. This places it at the 75th percentile of its historical range.
Vertex Pharmaceuticals Incorporated's current EV/EBITDA is 29.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 30.6x.
Vertex Pharmaceuticals Incorporated's return on equity (ROE) is 22.5%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is -31.5%.
Based on historical data, Vertex Pharmaceuticals Incorporated is trading at a P/E of 35.1x. This is at the 75th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Vertex Pharmaceuticals Incorporated has 85.0% gross margin and 39.4% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Vertex Pharmaceuticals Incorporated's Debt/EBITDA ratio is 0.8x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Concentrated CF franchise dependence
Metrics are mathematically derived from official filings.
Premium Multiples Price in Sustained Scarcity
Based on reported figures, VRTX trades at 35.41x trailing earnings and 27.47x trailing EV/EBITDA, falling to 28.99x forward P/E, a compression that implies the market expects earnings growth to absorb a large portion of the premium.
The forward P/E of 28.99 versus a trailing 35.41 suggests consensus anticipates meaningful earnings expansion, while a PEG of 4.27 indicates the growth rate embedded in the price is steep relative to what the reported earnings trajectory has delivered so far. Compared with the peer set, VRTX's multiple sits well above Regeneron at 21.77x and BioMarin at 31.18x, which implies investors are paying for durability of the cystic fibrosis cash flows rather than near-term growth alone. Investors should monitor whether non-CF revenue growth can close the gap between the premium multiple and the earnings delivered, since any slowdown would leave the valuation exposed.
Gross Margin Stability Versus Operating Volatility
As reported in quarterly income statements, VRTX gross margin held between 84.7% and 86.9% across ten quarters, while operating margin swung from 40.3% to 20.7%, indicating that cost discipline rather than pricing drives the variability.
The tight gross margin band points to stable unit economics on the small-molecule franchise, meaning the earnings swings originate below the gross line in R&D and SG&A. The latest quarter's compression to 20.7% operating margin, against 37.4% in the prior quarter, suggests the cost base can move sharply and that a single quarter may overstate or understate underlying earning power. A more reliable read of true earning power would average operating margin across several quarters and adjust for acquired IPR&D charges.
Debt Build Ahead of Modest Coverage
According to reported figures, VRTX debt-to-equity rose from 0.06 in 2024Q2 to 0.31 in 2026Q3 while interest coverage fell to 22.76x, a level that remains comfortable but reflects a shift from the prior near-debt-free structure.
The move from essentially no leverage to a D/E of 0.31 coincides with acquisition activity, suggesting debt is funding growth rather than operating needs. Interest coverage at 22.76x in the latest quarter indicates debt service is easily met, though the figure is volatile across quarters and not reported for several periods, so trend conclusions carry limited confidence. Further analysis is warranted on the refinancing profile and the terms of newly issued debt.
Liquidity Comfortable but Drifting Lower
Based on reported balance sheet data, the current ratio declined from 2.69 in 2024Q4 to 2.34 in 2026Q3 and the quick ratio from 2.35 to 1.89, leaving liquidity well above the 1.0 threshold even as the cushion narrows.
Quick ratios close to the current ratio indicate that inventory is a minor component of current assets, which is consistent with a small-molecule business where liquidity rests on cash and receivables. Under severe stress, the current cushion would still cover short-term obligations several times over, though the downward drift warrants monitoring as acquisition spending absorbs cash. The decline is directionally consistent with the rise in goodwill and debt seen in the balance sheet data.
Margin Durability Under Narrow Franchise
The most commonly misapplied metric here is trailing P/E, which as reported obscures the lumpy acquired IPR&D charges and stock-based compensation of roughly $154M to $195M per quarter that depress reported earnings relative to cash economics.
Trailing P/E treats volatile non-recurring charges as permanent earnings drag, which can make VRTX look more expensive or cheaper than its underlying cash generation justifies. A more appropriate measure is free cash flow yield adjusted for stock-based compensation, which better captures shareholder-level cash returns for a company deploying capital into acquisitions and buybacks. This adjustment matters most in quarters with heavy M&A, where reported EPS and P/E can diverge materially from cash economics.