Is Vertex Pharmaceuticals (VRTX) Still Attractively Priced After Its Multi Year Share Price Run?

Simply Wall St.06:33

If you are wondering whether Vertex Pharmaceuticals is still reasonably priced after its big run in recent years, you are not alone. This article is here to help you weigh what you are actually paying...

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This article is here to help you weigh what you are actually paying...</p>\n\n<a href=\"https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-vrtx/vertex-pharmaceuticals/news/is-vertex-pharmaceuticals-vrtx-still-attractively-priced-aft\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Vertex Pharmaceuticals (VRTX) Still Attractively Priced After Its Multi Year Share Price Run?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Vertex Pharmaceuticals (VRTX) Still Attractively Priced After Its Multi Year Share Price Run?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-03-05 06:33 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-vrtx/vertex-pharmaceuticals/news/is-vertex-pharmaceuticals-vrtx-still-attractively-priced-aft><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether Vertex Pharmaceuticals is still reasonably priced after its big run in recent years, you are not alone. This article is here to help you weigh what you are actually paying...</p>\n\n<a href=\"https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-vrtx/vertex-pharmaceuticals/news/is-vertex-pharmaceuticals-vrtx-still-attractively-priced-aft\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0256863811.USD","symbol_name":"ALLIANZ US EQUITY \"A\" INC","start_time":0,"source_url":"https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-vrtx/vertex-pharmaceuticals/news/is-vertex-pharmaceuticals-vrtx-still-attractively-priced-aft","article_id":"2617567509","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/36235-main-header/1756253398031"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-vrtx/vertex-pharmaceuticals/news/is-vertex-pharmaceuticals-vrtx-still-attractively-priced-aft","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2617567509","pubTimestamp":1772663624,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether Vertex Pharmaceuticals is still reasonably priced after its big run in recent years, you are not alone. This article is here to help you weigh what you are actually paying for.\nThe share price closed at US$477.89 recently, with returns of 5.7% year to date, 67.6% over 3 years and 123.0% over 5 years. However, the last year saw a 2.8% decline and the last 7 days a 1.1% decline.\nRecent headlines have focused on Vertex as a large, established biotech name, often...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","LU0757428866.USD":"THREADNEEDLE (LUX) GLOBAL SMALLER COMPANIES \"AE\" (USD) ACC","IE00B19Z3B42.SGD":"Legg Mason ClearBridge - Value A Acc SGD","LU0320765992.SGD":"FTIF - Franklin Biotechnology Discovery A Acc SGD","IE00B4R5TH58.HKD":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"A2\" (HKD) ACC","SG9999013999.USD":"UOB UNITED GLOBAL HEALTHCARE FUND (USDHDG) INC","LU2417539215.USD":"ALLIANZ GLOBAL INCOME \"AMF\" (USD) INC","BK4588":"碎股","LU0823416689.USD":"BNP PARIBAS HEALTH CARE INNOVATORS \"C\" (USD) ACC","LU0109394709.USD":"富兰克林生物科技新领域基金A (acc)","VRTX":"福泰制药","IE0002270589.USD":"LEGG MASON CLEARBRIDGE VALUE \"A\" (USD) INC","SG9999001176.SGD":"UOB UNITED GLOBAL HEALTHCARE \"SGD\" (ACC)","SGXZ57979304.SGD":"United Global Healthcare A Acc SGD-H","IE00B19Z9P08.USD":"LEGG MASON CLEARBRIDGE US AGGRESSIVE GROWTH \"A\" (USD) INC","LU1069344957.HKD":"AB SICAV I - AMERICAN GROWTH PORTFOLIO \"AD\" (HKD) INC","LU1778281490.HKD":"HSBC GIF GLOBAL LOWER CARBON EQUITY \"AD\" (HKD) INC","LU0058720904.USD":"联博国际健康护理基金A","LU2237438978.USD":"Amundi Funds US Pioneer A2 (C) USD","LU2324357040.USD":"HSBC GIF GLOBAL EQUITY SUSTAINABLE HEALTHCARE \"AC\" (USD) ACC","LU2362541273.HKD":"WELLINGTON NEXT GENERATION GLOBAL EQUITY \"A\" (HKD) ACC","BK4023":"应用软件","LU1093756325.SGD":"FTIF - Franklin K2 Alt Strat Fd A (acc) SGD-H1","LU1430594728.SGD":"Eastspring Investments - Global Low Volatility Equity AS SGD","LU1585245621.USD":"EASTSPRING INV GLOBAL LOW VOLATILITY EQUITY FUND \"A\" (USD) ACC B","LU1035775433.USD":"AB SICAV I - AMERICAN GROWTH PORTFOLIO \"AD\" (USD) INC","BK4532":"文艺复兴科技持仓","LU1093756168.USD":"FRANKLIN K2 ALTERNATIVE STRATEGIES \"A\" (USD) ACC","IE00BZ9MQY76.HKD":"FTGF CLEARBRIDGE US AGGRESSIVE GROWTH \"A\" (HKD) ACC","LU2362541513.USD":"WELLINGTON NEXT GENERATION GLOBAL EQUITY \"A\" (USD) ACC","LU2236285917.USD":"ALLIANZ GLOBAL INCOME \"AMG\" (USD) INC","IE00B2B36J28.USD":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"I1\" (USD) INC","LU0889565916.HKD":"FRANKLIN BIOTECHNOLOGY DISCOVERY \"A\" (HKD) ACC","LU1559883803.SGD":"Aberdeen Standard SICAV I - North American Smaller Companies Fund A Acc SGD-H","IE00BJT1NW94.SGD":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"A2\" (SGDHDG) ACC","LU1674673691.USD":"HSBC GIF GLOBAL LOWER CARBON EQUITY \"AD\" (USD) INC","VERX":"Vertex, Inc.","BK4567":"ESG概念","BK4585":"ETF&股票定投概念","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU0432979614.USD":"JPM GLOBAL HEALTHCARE \"A\" ACC","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC","BK4139":"生物科技","IE0002141913.USD":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"I2\" (USD) ACC","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","BK4533":"AQR资本管理(全球第二大对冲基金)","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","IE00BJJMRZ35.SGD":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"I2\" (SGDHDG) ACC","LU0079474960.USD":"联博美国增长基金A","IE00BFTCPJ56.SGD":"Janus Henderson Global Life Sciences A Acc SGD"},"translate_title":"Vertex Pharmaceuticals(VRTX)经过多年的股价上涨后，其定价是否仍然具有吸引力？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"VRTX":1.5,"VERX":1.5,"DCF":1},"content_text":"If you are wondering whether Vertex Pharmaceuticals is still reasonably priced after its big run in recent years, you are not alone. This article is here to help you weigh what you are actually paying for. The share price closed at US$477.89 recently, with returns of 5.7% year to date, 67.6% over 3 years and 123.0% over 5 years. However, the last year saw a 2.8% decline and the last 7 days a 1.1% decline. Recent headlines have focused on Vertex as a large, established biotech name, often highlighting its position in treatments for serious diseases and its growing late stage pipeline. This context helps explain why the stock has been in focus even with relatively modest short term moves. Vertex currently records a valuation score of 3 out of 6. Next we will look at what different valuation methods say about that figure, before circling back at the end to a more complete way to think about what the market is pricing in.  Find out why Vertex Pharmaceuticals's -2.8% return over the last year is lagging behind its peers. AdvertisementApproach 1: Vertex Pharmaceuticals Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow, or DCF, model takes the cash that a company is expected to generate in the future and discounts those amounts back to what they are worth today, then compares that to the current share price. For Vertex Pharmaceuticals, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is about $3.18b. Analyst and extrapolated projections, provided by Simply Wall St, point to free cash flow of $4.63b in 2026 and around $11.95b by 2035, all in $. These values are discounted back to today using the model’s assumptions. This results in an estimated intrinsic value of US$882.26 per share. When compared with the recent share price of US$477.89, this DCF output suggests that the stock is 45.8% undervalued according to these cash flow projections. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests Vertex Pharmaceuticals is undervalued by 45.8%. Track this in your watchlist or portfolio, or discover 49 more high quality undervalued stocks. VRTX Discounted Cash Flow as at Mar 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Vertex Pharmaceuticals. Approach 2: Vertex Pharmaceuticals Price vs Earnings For profitable companies like Vertex Pharmaceuticals, the P/E ratio is a useful shorthand for how much you are paying for each dollar of earnings. It quickly shows how the market weighs the company’s earnings against others. What counts as a normal P/E depends on how investors see growth potential and risk. Higher expected growth or lower perceived risk can support a higher P/E, while lower growth expectations or higher risk usually align with a lower one. Vertex currently trades on a P/E of 30.7x. That sits above the broader Biotechs industry average of 21.8x, but below the peer group average of 41.5x. Simply Wall St’s Fair Ratio for Vertex is 29.3x, which is its proprietary view of what a reasonable P/E could be, given factors like earnings growth, profit margins, industry, market cap and specific risks. This Fair Ratio is more tailored than a simple comparison with industry or peers, because it attempts to adjust for company specific qualities rather than assuming all biotechs should trade on the same multiple. Comparing the Fair Ratio of 29.3x with the current P/E of 30.7x suggests the stock is slightly expensive on this measure. Result: OVERVALUED NasdaqGS:VRTX P/E Ratio as at Mar 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 18 top founder-led companies. Upgrade Your Decision Making: Choose your Vertex Pharmaceuticals Narrative Earlier we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives, which are simply your own story about Vertex Pharmaceuticals, tied directly to your assumptions for future revenue, earnings, margins and a Fair Value that you can compare with the current price. These Narratives sit inside Simply Wall St’s Community page where millions of investors post their views. They update automatically when new information such as earnings or news arrives, and they can differ meaningfully. For example, one recent Vertex Narrative on the platform arrives at a Fair Value of about US$401 per share, while another sits closer to US$604, showing how two investors looking at the same company can reasonably land in very different places. For Vertex Pharmaceuticals however we'll make it really easy for you with previews of two leading Vertex Pharmaceuticals Narratives: 🐂 Vertex Pharmaceuticals Bull Case Fair Value: US$504.04 Current price vs this Fair Value: about 5.2% below the narrative Fair Value Modeled revenue growth: 6.98%  Frames Vertex as moving beyond its cystic fibrosis roots, with a growing presence in pain, hematology and renal diseases supported by a cash balance of about US$12.3b and more than 10 mid to late stage programs. Highlights products such as Alyftrek, Casgevy and Suzetrigine as key to supporting revenue and broadening the business beyond the CF franchise. Uses a multi stage DCF to arrive at a Fair Value of US$504.04, viewing the shares near that level as fitting a quality growth at a reasonable price profile.  🐻 Vertex Pharmaceuticals Bear Case Fair Value: US$401.30 Current price vs this Fair Value: about 19.1% above the narrative Fair Value Modeled revenue growth: 3.03%  Emphasizes risks from pricing pressure, regulatory scrutiny and the high cost and complexity of gene editing and cell therapies, which could limit margins and earnings growth. Points to concentration in rare genetic diseases and execution risk in newer areas like renal disease and sickle cell, along with rising competition that could affect market share and pricing power. Ties these assumptions to a Fair Value of about US$401.30, based on analyst forecasts for revenue, margins and a lower P/E multiple than some current expectations.  Together, these two Narratives show how the same set of public facts can support very different conclusions about Vertex Pharmaceuticals. If you want to see the full reasoning, including the detailed assumptions behind each Fair Value, you can use the community Narratives as a starting point, then adjust the numbers to match your own view of the risks and opportunities ahead. Curious how numbers become stories that shape markets? Explore Community Narratives Do you think there's more to the story for Vertex Pharmaceuticals? Head over to our Community to see what others are saying! NasdaqGS:VRTX 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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