Latest Ratios: P/E Ratio 33.7x · EV/EBITDA 26.1x · 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 | $131.0B | $117.0B | $103.9B | $106.0B | $74.8B | $57.1B | $62.3B | $57.1B | $42.9B | $37.9B | $18.0B |
| Enterprise Value | $129.8B | $115.8B | $101.0B | $96.4B | $65.2B | $51.2B | $57.2B | $54.6B | $40.9B | $36.9B | $17.7B |
| P/E Ratio → | 33.70 | 29.59 | — | 29.29 | 22.53 | 24.37 | 22.97 | 48.55 | 20.48 | 144.10 | — |
| P/S Ratio | 10.85 | 9.69 | 9.42 | 10.74 | 8.38 | 7.54 | 10.03 | 13.71 | 14.09 | 15.25 | 10.59 |
| P/B Ratio | 7.14 | 6.27 | 6.33 | 6.03 | 5.38 | 5.65 | 7.17 | 9.38 | 9.68 | 18.58 | 13.47 |
| P/FCF | 41.03 | 36.62 | — | 32.33 | 19.06 | 23.70 | 20.79 | 38.21 | 36.56 | 64.81 | 100.40 |
| P/OCF | 36.09 | 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 | 26.14 | 23.30 | — | 24.03 | 14.64 | 17.62 | 19.28 | 41.88 | 57.78 | 199.79 | 247.89 |
| EV / EBIT | 27.27 | 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 | 3.0% | 3.4% | — | 3.4% | 4.4% | 4.1% | 4.4% | 2.1% | 4.9% | 0.7% | — |
| FCF Yield | 2.4% | 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 33.7x. 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 26.1x. 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 33.7x. 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
CF franchise concentration and IRA pricing
Metrics are mathematically derived from official filings.
Margin Resilience Amid Mix Shift
Vertex's gross margin held at 85.3% in 2026Q2, while operating margin expanded to 37.4% from 22.7% a year earlier, per reported financials, underscoring pricing power and operating leverage.
The stability of gross margin above 85% despite the initial costs of gene therapy manufacturing suggests that the core small-molecule franchise remains highly profitable and that the company is effectively managing the cost structure of newer launches. Operating margin expansion from 22.7% in 2025Q1 to 37.4% in 2026Q2 indicates that revenue growth is outpacing fixed cost increases, a sign of strong operating leverage. However, investors should monitor whether the shift toward cell and gene therapies, which carry higher manufacturing and logistics costs, could compress margins over time.
Return on Capital Recovering from One-Off Dip
ROIC rebounded to 5.9% in 2026Q2 from a negative -24.8% in 2024Q2, as reported in financial statements, reflecting normalization after an IPR&D charge and improved capital efficiency.
The negative ROIC in 2024Q2 was likely driven by a large acquired IPR&D charge, which is a non-recurring item that obscures underlying profitability. Excluding that quarter, ROIC has remained in the 5-7% range, which appears modest for a company with such high margins, but this is partly due to the substantial cash pile and investments in R&D that do not yet generate returns. The trend suggests that returns are stable but not compounding significantly, and investors should watch whether new product launches like Casgevy and VX-548 can drive ROIC higher.
Working Capital Stretch Signals Launch Dynamics
Cash conversion cycle lengthened to 299 days in 2026Q2 from 168 days in 2024Q1, per reported data, driven by a surge in days inventory outstanding to 328, reflecting inventory builds for new therapies.
The increase in DIO from 206 days in 2024Q1 to 328 days in 2026Q2 indicates that Vertex is building inventory ahead of expected demand for Casgevy and other products, which is typical for complex therapies with long manufacturing lead times. DSO has remained stable around 56-61 days, suggesting consistent collection practices, while DPO has declined slightly, indicating that the company is paying suppliers more promptly. The lengthening CCC is not a sign of inefficiency but rather a reflection of the capital-intensive nature of cell and gene therapy manufacturing, which requires significant upfront investment in inventory.
Minimal Leverage Masks Strategic Flexibility
Debt-to-equity stands at 0.10 with interest coverage above 400x in 2025Q4, as per balance sheet data, indicating a fortress balance sheet that provides ample capacity for M&A and pipeline investment.
Despite a rise in total debt to $2.0B in 2026Q2 from $721M in 2024Q1, the D/E ratio remains extremely low at 0.10, and interest coverage is exceptionally high, suggesting that debt service is not a concern. The company's substantial cash position of over $6B and minimal leverage imply that it can fund its aggressive R&D and potential acquisitions without straining its balance sheet. However, the pending acquisition of Crinetics Pharmaceuticals may increase leverage, and investors should monitor the terms and integration risk.
Liquidity Buffers Ample for Launch Risks
Current ratio improved to 3.19 in 2026Q2 from 2.69 in 2024Q4, with quick ratio at 2.74, as reported in financial statements, indicating a strong liquidity position to weather operational uncertainties.
The current ratio above 3.0 and quick ratio above 2.7 suggest that Vertex has more than sufficient short-term assets to cover its liabilities, even if inventory becomes difficult to liquidate. This liquidity cushion is particularly important given the high fixed costs and long cash conversion cycle associated with gene therapy manufacturing. The company's ability to maintain such a strong liquidity position while investing heavily in R&D and buybacks indicates prudent cash management.
Misapplied Metric: P/E on GAAP Earnings
The P/E ratio of 35.77 is often misapplied to Vertex because GAAP earnings are distorted by IPR&D charges and stock-based compensation, as per reported figures, obscuring true earning power.
Investors commonly use P/E to value biotech companies, but for Vertex, GAAP earnings can be significantly impacted by non-recurring IPR&D charges, such as the one that caused a negative ROIC in 2024Q2. Additionally, stock-based compensation of $170M in 2026Q2 is a real economic cost that is not reflected in net income. A more appropriate metric would be EV/EBITDA or P/FCF, which adjust for these items and provide a clearer picture of underlying cash generation. The forward P/E of 28.78 is more informative, but investors should also consider the sustainability of growth and the potential impact of IRA pricing negotiations on future margins.