Vertex Pharmaceuticals Incorporated (VRTX) Financial Ratios
30 years of historical data (1996–2025) · Healthcare · Biotechnology
EV/EBITDA
↑
21.48
+8% vs avg
5yr avg: 19.90
30Y Low14.6·High57.8
P/FCF
↑
33.80
↑+21% vs avg
5yr avg: 27.93
30Y Low19.1·High141.1
P/B Ratio
↑
5.87
-1% vs avg
5yr avg: 5.93
30Y Low2.9·High27.8
ROE
↓
22.5%
↓+19% vs avg
5yr avg: 19.0%
30Y Low-180%·High65%
Debt/EBITDA
↑
0.78
↑+106% vs avg
5yr avg: 0.38
30Y Low0.2·High17.2
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
VRTX Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Vertex Pharmaceuticals Incorporated trades at 27.7x earnings, roughly in line with its 5-year average of 26.4x, sitting at the 50th percentile of its historical range. Compared to the Healthcare sector median P/E of 22.2x, the stock trades at a premium of 25%. On a free-cash-flow basis, the stock trades at 33.8x P/FCF, 21% above the 5-year average of 27.9x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $107.9B | $117.0B | $103.9B | $106.0B | $74.8B | $57.1B | $62.3B | $57.1B | $42.9B | $37.9B | $18.0B |
| Enterprise Value | $106.7B | $115.8B | $101.0B | $96.4B | $65.2B | $51.2B | $57.2B | $54.6B | $40.9B | $36.9B | $17.7B |
| P/E Ratio → | 27.70 | 29.59 | — | 29.29 | 22.53 | 24.37 | 22.97 | 48.55 | 20.48 | 144.10 | — |
| P/S Ratio | 8.94 | 9.69 | 9.42 | 10.74 | 8.38 | 7.54 | 10.03 | 13.71 | 14.09 | 15.25 | 10.59 |
| P/B Ratio | 5.87 | 6.27 | 6.33 | 6.03 | 5.38 | 5.65 | 7.17 | 9.38 | 9.68 | 18.58 | 13.47 |
| P/FCF | 33.80 | 36.62 | — | 32.33 | 19.06 | 23.70 | 20.79 | 38.21 | 36.56 | 64.81 | 100.40 |
| P/OCF | 29.72 | 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
VRTX EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Vertex Pharmaceuticals Incorporated's enterprise value stands at 21.5x EBITDA, 8% above its 5-year average of 19.9x. The Healthcare sector median is 14.0x, placing the stock at a 53% premium on an enterprise-value basis.
| 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 | 21.48 | 23.30 | — | 24.03 | 14.64 | 17.62 | 19.28 | 41.88 | 57.78 | 199.79 | 247.89 |
| EV / EBIT | 22.42 | 24.32 | 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 |
VRTX Profitability
Margins and return-on-capital ratios measuring operating efficiency
Vertex Pharmaceuticals Incorporated earns an operating margin of 39.4%. ROE of 22.5% indicates solid capital efficiency. ROIC of 23.0% represents excellent returns on invested capital.
Margins
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% |
Return on Capital
| 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% |
VRTX Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Vertex Pharmaceuticals Incorporated carries a Debt/EBITDA ratio of 0.8x, which is very conservative (75% below the sector average of 3.1x). The company holds a net cash position — cash of $5.1B exceeds total debt of $3.9B, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns. Interest coverage of 357.9x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| 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 | 357.95 | 357.95 | 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)
VRTX Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Vertex Pharmaceuticals Incorporated's current ratio of 2.90x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The quick ratio of 2.46x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has declined from 3.99x to 2.90x over the past 3 years.
| 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 |
VRTX Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Vertex Pharmaceuticals Incorporated returns 1.9% to shareholders annually primarily through share buybacks. The earnings yield of 3.6% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | — | — | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.6% | 3.4% | — | 3.4% | 4.4% | 4.1% | 4.4% | 2.1% | 4.9% | 0.7% | — |
| FCF Yield | 3.0% | 2.7% | — | 3.1% | 5.2% | 4.2% | 4.8% | 2.6% | 2.7% | 1.5% | 1.0% |
| Buyback Yield | 1.9% | 1.7% | 1.1% | 0.4% | 0.0% | 2.5% | 0.9% | 0.3% | 0.8% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.9% | 1.7% | 1.1% | 0.4% | 0.0% | 2.5% | 0.9% | 0.3% | 0.8% | 0.0% | 0.0% |
| Shares Outstanding | — | $258M | $258M | $261M | $259M | $260M | $263M | $261M | $259M | $253M | $245M |
Peer Comparison
Compare VRTX with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 VRTXYou | $108B | 27.7 | 21.5 | 33.8 | 85.0% | 39.4% | 22.5% | 23.0% | 0.8 |
 REGN | $73B | 16.9 | 17.6 | 17.9 | 85.4% | 24.9% | 14.9% | 8.9% | 0.7 |
 ALNY | $40B | 129.2 | 71.4 | 86.3 | 81.8% | 13.5% | 73.3% | 33.4% | 2.3 |
 BMRN | $10B | 29.6 | 15.6 | 14.1 | 77.1% | 16.6% | 5.9% | 7.4% | 1.0 |
 SRPT | $2B | 9.3 | 9.9 | — | 83.2% | 11.5% | 19.7% | 9.1% | 5.3 |
 RARE | $2B | -4.3 | — | — | 83.8% | -79.5% | -607.5% | -89.4% | — |
 IONS | $12B | -31.6 | — | — | 98.3% | -40.5% | -70.7% | -12.8% | — |
 ABBV | $365B | 87.0 | 15.2 | 20.5 | 70.2% | 32.8% | 6214.7% | 23.9% | 2.4 |
 BIIB | $28B | 21.4 | 11.3 | 13.6 | 70.5% | 19.1% | 7.4% | 6.5% | 2.5 |
 GILD | $166B | 351.3 | 41.3 | 16.1 | 78.3% | 5.8% | 2.3% | 3.2% | 6.0 |
 MRNA | $19B | -6.4 | — | — | 55.3% | -158.1% | -28.9% | -26.1% | — |
| Healthcare Median | — | 22.2 | 14.0 | 18.6 | 64.1% | -5.3% | -34.0% | -11.2% | 3.1 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonVRTX — Frequently Asked Questions
Quick answers to the most common questions about buying VRTX stock.
What is Vertex Pharmaceuticals Incorporated's P/E ratio?
Vertex Pharmaceuticals Incorporated's current P/E ratio is 27.7x. The historical average is 42.7x. This places it at the 50th percentile of its historical range.
What is Vertex Pharmaceuticals Incorporated's EV/EBITDA?
Vertex Pharmaceuticals Incorporated's current EV/EBITDA is 21.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 30.6x.
What is Vertex Pharmaceuticals Incorporated's ROE?
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%.
Is VRTX stock overvalued?
Based on historical data, Vertex Pharmaceuticals Incorporated is trading at a P/E of 27.7x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What are Vertex Pharmaceuticals Incorporated's profit margins?
Vertex Pharmaceuticals Incorporated has 85.0% gross margin and 39.4% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Vertex Pharmaceuticals Incorporated have?
Vertex Pharmaceuticals Incorporated's Debt/EBITDA ratio is 0.8x, indicating low leverage. A ratio below 2x is generally considered financially healthy.