Latest Ratios: P/E Ratio 34.1x · EV/EBITDA 26.5x · 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 | $132.8B | $117.0B | $103.9B | $106.0B | $74.8B | $57.1B | $62.3B | $57.1B | $42.9B | $37.9B | $18.0B |
| Enterprise Value | $131.6B | $115.8B | $101.0B | $96.4B | $65.2B | $51.2B | $57.2B | $54.6B | $40.9B | $36.9B | $17.7B |
| P/E Ratio → | 34.09 | 29.59 | — | 29.29 | 22.53 | 24.37 | 22.97 | 48.55 | 20.48 | 144.10 | — |
| P/S Ratio | 11.00 | 9.69 | 9.42 | 10.74 | 8.38 | 7.54 | 10.03 | 13.71 | 14.09 | 15.25 | 10.59 |
| P/B Ratio | 7.22 | 6.27 | 6.33 | 6.03 | 5.38 | 5.65 | 7.17 | 9.38 | 9.68 | 18.58 | 13.47 |
| P/FCF | 41.59 | 36.62 | — | 32.33 | 19.06 | 23.70 | 20.79 | 38.21 | 36.56 | 64.81 | 100.40 |
| P/OCF | 36.58 | 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 | 26.50 | 23.30 | — | 24.03 | 14.64 | 17.62 | 19.28 | 41.88 | 57.78 | 199.79 | 247.89 |
| EV / EBIT | 27.65 | 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 |
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 | 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)
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 | 2.9% | 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% | 0.0% | 2.5% | 0.9% | 0.3% | 0.8% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.5% | 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 |
IRA pricing negotiation exposure
Based on current market data, VRTX trades at a forward P/E of 25.45, which, according to recent financial analysis, reflects a scarcity premium assigned to its dominant cystic fibrosis franchise and the market's anticipation of successful diversification into non-opioid pain management and gene-editing therapeutic platforms.
The current P/E multiple suggests investors are pricing in long-term durability of the CFTR modulator revenue stream rather than immediate cyclical growth. While the PEG ratio of 3.87 appears high relative to broader biotech peers, it may be justified if the company successfully executes its pipeline expansion, effectively lowering the valuation multiple through future earnings growth.
As reported in historical financial statements, VRTX's ROIC has fluctuated significantly, reaching a peak of 10.5% in 2023Q4 before settling at 5.1% in 2026Q1, a trend that appears heavily influenced by the timing of large-scale, non-recurring research and development investments and strategic acquisition-related charges.
The volatility in ROIC warrants caution, as it does not necessarily reflect a decline in the underlying profitability of the core CF franchise. Investors should monitor whether the company can maintain higher returns on capital as it transitions from a single-indication powerhouse to a multi-platform biotech firm with more complex capital requirements.
According to quarterly filings, the company's cash conversion cycle has shown extreme volatility, swinging from a negative 92 days in 2025Q3 to 348 days in 2026Q1, which suggests that the timing of international reimbursement deals and inventory management for new therapies creates significant noise in operational efficiency.
The dramatic shift in the CCC appears to be driven by lumpy accounts payable and inventory accumulation rather than a fundamental breakdown in collection efficiency. This suggests that as the company scales its gene-editing portfolio, analysts should look past quarterly fluctuations to assess the underlying stability of the cash-to-cash cycle.
Based on reported figures, VRTX maintains a highly conservative capital structure with a debt-to-equity ratio of 0.10 as of 2026Q1, providing the firm with substantial financial flexibility to fund its aggressive R&D pipeline without relying on external debt markets during periods of high capital expenditure.
The negligible debt load relative to its cash-generating capacity suggests that the company is well-positioned to weather potential regulatory headwinds or market volatility. This balance sheet strength serves as a critical buffer, allowing management to prioritize long-term innovation over the immediate need to service debt obligations.
The P/E ratio is frequently misapplied to VRTX because it fails to account for the lumpy, non-recurring nature of IPR&D charges, which, as noted in recent financial disclosures, can artificially depress reported earnings and create a misleading picture of the company's true, normalized cash-generating power.
Investors should instead focus on EV/EBITDA or free cash flow yield to better capture the underlying economic reality of the business. Relying solely on P/E may lead to an incorrect assessment of the company's valuation, as it ignores the significant R&D investments that are essential for maintaining the firm's long-term competitive moat.
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 34.1x. 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 26.5x. 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 34.1x. 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.