Vertex Pharmaceuticals Incorporated (VRTX) P/E Ratio History
Fairly ValuedTrading at 29.5x, near 5Y avg of 26.3x · 85th percentile · In line with own history · Data 1993–2026
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P/E Ratio Analysis
As of June 22, 2026, Vertex Pharmaceuticals Incorporated (VRTX) trades at a price-to-earnings ratio of 29.5x, with a stock price of $451.63 and trailing twelve-month earnings per share of $16.93.
The current P/E is 12% above its 5-year average of 26.3x. Over the past five years, VRTX's P/E has ranged from a low of 20.5x to a high of 36.7x, placing the current valuation at the 85th percentile of its historical range.
Compared to the Healthcare sector median P/E of 22.1x, VRTX trades at a 33% premium to its sector peers. The sector includes 234 companies with P/E ratios ranging from 0.0x to 197.0x.
The PEG ratio of 3.56 (P/E divided by 837% EPS growth) suggests the stock may be expensive relative to its earnings growth. Peter Lynch popularized the rule that a PEG below 1.0 indicates an attractive entry point.
Relative to the broader market, VRTX commands a significant premium over the S&P 500 median P/E of 24.4x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our VRTX DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
VRTX Cross-Benchmark Valuation
How does the current P/E compare to sector peers and the broader market?
VRTX P/E vs Peers
Commercial Rare Disease Biopharma peers sorted by market cap
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $63B | 14.7Lowest | 2.32 | +8% | |
| $37B | 119.4 | - | +207% | |
| $11B | 30.4 | - | -19% | |
| $383B | 91.4 | - | -1% | |
| $29B | 22.3 | - | -21% | |
| $154B | 18.3 | 0.14Best | +1684%Best |
Lower P/E can signal a discount or weaker growth expectations; PEG adds growth context.
VRTX Historical P/E Data (1993–2026)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Period End | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2026 Q1 | - | $446.47 | $16.86 | 26.5x | -75% |
| FY2025 Q4 | Dec 31 2025 | $453.36 | $15.33 | 29.6x | -72% |
| FY2025 Q3 | - | $391.64 | $14.18 | 27.6x | -74% |
| FY2025 Q2 | Jun 30 2025 | $445.20 | $13.99 | 31.8x | -70% |
| FY2024 Q1 | Mar 31 2024 | $418.01 | $15.41 | 27.1x | -74% |
| FY2023 Q4 | Dec 31 2023 | $406.89 | $13.89 | 29.3x | -72% |
| FY2023 Q3 | Sep 30 2023 | $347.74 | $13.33 | 26.1x | -75% |
| FY2023 Q2 | Jun 30 2023 | $351.91 | $12.95 | 27.2x | -74% |
| FY2023 Q1 | Mar 31 2023 | $315.07 | $12.56 | 25.1x | -76% |
| FY2022 Q4 | Dec 31 2022 | $288.78 | $12.83 | 22.5x | -79% |
| FY2022 Q3 | Sep 30 2022 | $289.54 | $12.68 | 22.8x | -78% |
| FY2022 Q2 | - | $281.79 | $12.37 | 22.8x | -78% |
| FY2022 Q1 | - | $260.97 | $9.50 | 27.5x | -74% |
| FY2021 Q4 | Dec 31 2021 | $219.60 | $9.03 | 24.3x | -77% |
| FY2021 Q3 | - | $181.39 | $8.33 | 21.8x | -79% |
| FY2021 Q2 | Jun 30 2021 | $201.63 | $7.58 | 26.6x | -75% |
| FY2021 Q1 | Mar 31 2021 | $214.89 | $10.50 | 20.5x | -81% |
| FY2020 Q4 | - | $236.34 | $10.30 | 22.9x | -78% |
| FY2020 Q3 | Sep 30 2020 | $272.12 | $10.23 | 26.6x | -75% |
| FY2020 Q2 | - | $290.31 | $7.92 | 36.7x | -65% |
| FY2020 Q1 | - | $237.95 | $5.77 | 41.2x | -61% |
| FY2019 Q4 | - | $218.95 | $4.51 | 48.5x | -54% |
| FY2019 Q3 | Sep 30 2019 | $169.42 | $8.25 | 20.5x | -81% |
| FY2019 Q2 | Jun 30 2019 | $183.38 | $8.53 | 21.5x | -80% |
| FY2019 Q1 | Mar 31 2019 | $183.95 | $8.30 | 22.2x | -79% |
| FY2018 Q4 | Dec 31 2018 | $165.71 | $8.08 | 20.5x | -81% |
| FY2018 Q3 | Sep 30 2018 | $192.74 | $2.50 | 77.1x | -27% |
| FY2018 Q2 | Jun 30 2018 | $169.96 | $1.59 | 106.9x | +1% |
| FY2018 Q1 | Mar 31 2018 | $162.98 | $0.86 | 189.5x | +80% |
| FY2017 Q4 | Dec 31 2017 | $149.86 | $1.04 | 144.1x | +37% |
| FY2017 Q3 | Sep 30 2017 | $152.04 | $0.78 | 194.9x | +85% |
| FY2017 Q2 | Jun 30 2017 | $128.87 | $1.02 | 126.3x | +20% |
| FY2017 Q1 | Mar 31 2017 | $109.35 | $0.69 | 158.5x | +50% |
| FY2012 Q3 | Sep 30 2012 | $55.89 | $0.57 | 98.1x | -7% |
| FY2012 Q2 | Jun 30 2012 | $55.92 | $1.86 | 30.1x | -71% |
| FY2012 Q1 | Mar 31 2012 | $41.01 | $1.32 | 31.1x | -71% |
| FY2011 Q4 | Dec 31 2011 | $33.21 | $0.02 | 1660.5x | +1475% |
| FY1994 Q1 | - | $6.69 | $0.05 | 133.8x | +27% |
| FY1993 Q4 | Dec 31 1993 | $9.25 | $0.02 | 462.5x | +339% |
Average P/E for displayed period: 105.5x
Full Stock Analysis
Deep dive into VRTX consensus models and risk factors.
Intrinsic Valuation
DCF models, multiple analysis, and analyst estimates.
Historical Returns
33+ years return with dividends reinvested.
DCA Calculator
See how regular investing compounds over time.
Peer Comparison
Compare growth, multiples, and margins vs sector.
VRTX — Frequently Asked Questions
Quick answers to the most common questions about buying VRTX stock.
What is VRTX's P/E ratio?
Vertex Pharmaceuticals Incorporated (VRTX) trailing twelve-month P/E ratio is 29.5x, based on TTM diluted EPS of $16.93. The 5-year average P/E is 26.3x and the historical range spans 20.5x to 36.7x.
Is VRTX stock overvalued or undervalued?
VRTX trades at 29.5x P/E, near its 5-year average of 26.3x. The 85th percentile ranking within the 20.5x–36.7x historical range places valuation within normal bounds.
Is VRTX stock expensive?
VRTX is fairly valued relative to its own history. The current P/E of 29.5x is near the 5-year average of 26.3x (85th percentile of historical range).
What is VRTX's historical P/E range?
Over the past 5 years, VRTX's P/E ratio has ranged from 20.5x to 36.7x, with a median of 26.6x and an average of 26.3x. The current P/E of 29.5x places the stock at the 85th percentile of this range. Full historical data spans 1993–2026.
How does VRTX's P/E compare to the S&P 500?
VRTX trades at 29.5x P/E versus the S&P 500 median of 24.4x. The 21% premium to the market typically reflects higher expected earnings growth or quality.
How does VRTX's valuation compare to Healthcare peers?
Vertex Pharmaceuticals Incorporated P/E of 29.5x compares to the Healthcare sector median of 22.1x. The premium reflects expected growth above peers or stronger fundamentals. See the peer comparison table on this page for ticker-by-ticker P/E and PEG.
What is VRTX's PEG ratio?
VRTX PEG ratio is 3.56, based on a P/E of 29.5x and EPS growth of 836.5%. A PEG above 2.0 indicates a premium valuation relative to earnings growth — typically considered expensive.
What is VRTX's earnings yield?
VRTX earnings yield is 3.39%, the inverse of its 29.5x P/E ratio. Earnings yield represents the percentage of each dollar invested that the company earns. It can be compared directly to bond yields to assess relative attractiveness of stocks versus fixed income.