--- title: Vertex Pharmaceuticals (VRTX) — intrinsic value and fair price canonical: https://sweetvaluelab.com/stocks/vrtx ticker: VRTX as_of: 2026-10-17 sector: Healthcare industry: Biotechnology --- # Vertex Pharmaceuticals (VRTX) Vertex Pharmaceuticals (VRTX) closed at $499.74 on Oct 16, 2026, overvalued by 1% vs its model value of $492.88 (from a five-year discounted cash flow). ## Key figures | Figure | Value | | --- | ---: | | Last close | $499.74 (Oct 16, 2026) | | Model value (from a five-year discounted cash flow) | $492.88 | | Price vs model | overvalued by 1% vs model | | Range of that model | $292.82 – $1,016.96 | | Market value | $126.7B | | P/E (fiscal 2025) | 32.6 | | Net margin (fiscal 2025) | 32.7% | | Free cash flow (fiscal 2025) | $3.2B | | Dividend yield (trailing twelve months) | 0.00% | | Beta | 0.32 | | Cost of capital (WACC) | 7.34% | | Business classification | Profitable Growth (Moderate growth (~10% recent), High profitability (33% net margin), Highly cyclical earnings) | ## Valuation models Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026. | Model | Role | Value per share | Low | High | | --- | --- | ---: | ---: | ---: | | DCF · Perpetuity growth · 5y | primary | $492.88 | $292.82 | $1,016.96 | | DCF · Perpetuity growth · 10y | cross check | $581.69 | $348.20 | $1,223.07 | | DCF · EBITDA exit · 5y | cross check | $856.43 | $710.10 | $1,026.49 | | DCF · EBITDA exit · 10y | cross check | $952.53 | $736.65 | $1,232.32 | | P/E · peers | cross check | $837.88 | $578.12 | $1,097.63 | | P/E · own history | cross check | $508.35 | $461.81 | $553.26 | | PEG | sanity check | $323.97 | $323.97 | $323.97 | | EV/EBITDA · peers | cross check | $687.26 | $531.50 | $843.02 | | EV/Revenue · peers | cross check | $476.47 | $357.94 | $620.93 | | Earnings power value | cross check | $44.81 | $40.55 | $51.25 | | Dividend discount | cross check | $0.00 | $0.00 | $0.00 | ## Insider activity (SEC Form 4) No open-market insider buys or sales filed in the past 90 days. | Date | Insider | Relationship | Transaction | Shares | Value | | --- | --- | --- | --- | ---: | ---: | | Sep 8, 2026 | van Grunsven Jasper | EVP, CP and NPPO | Grant / award | 8,682 | $0 | | Aug 28, 2026 | Ambrose Kristen | SVP & Chief Accounting Officer | Grant / award | 5,000 | $0 | | Aug 27, 2026 | SACHS BRUCE I | Director | Bona fide gift | 6,000 | $0 | | Jul 21, 2026 | Tatsis Ourania | EVP, Chief Reg. & Quality Off. | Grant / award | 8,251 | $0 | | Jul 21, 2026 | Sachdev Amit | EVP Chief Patient & Ext Af Off | Grant / award | 8,251 | $0 | ## Recent SEC filings | Filed | Form | What | Filing | | --- | --- | --- | --- | | Sep 1, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers | https://www.sec.gov/Archives/edgar/data/875320/000087532026000264/vrtx-20260827.htm | | Aug 4, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/875320/000087532026000259/vrtx-20260630.htm | | Aug 3, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/875320/000087532026000256/vrtx-20260803.htm | | Jul 7, 2026 | 8-K | 1.01 Entry into a Material Agreement; 7.01 Regulation FD Disclosure; 8.01 Other Events; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/875320/000119312526296710/d113650d8k.htm | | May 13, 2026 | S-8 | Employee stock plan registration | https://www.sec.gov/Archives/edgar/data/875320/000087532026000206/s-82026plan.htm | ## Superinvestors holding it (latest 13F) | Manager | Quarter | Shares | Value | | --- | --- | ---: | ---: | | Tweedy Browne | 2026-06-30 | 40,121 | $19.9M | | Torray | 2026-06-30 | 15,215 | $7.6M | | Bridgewater | 2026-06-30 | 10,865 | $5.4M | 3 tracked managers in all. ## About Vertex Pharmaceuticals Incorporated is a leading biotechnology firm primarily focused on the discovery, advancement, and marketing of innovative treatments, particularly for cystic fibrosis (CF). The company offers a range of approved medications for CF patients, including SYMDEKO/SYMKEVI, ORKAMBI, and KALYDECO, which target specific mutations within the cystic fibrosis transmembrane conductance regulator gene. Additionally, they provide TRIKAFTA for individuals with CF aged six years and older who possess at least one F508del mutation. Beyond its established CF therapies, Vertex maintains a robust and diverse clinical pipeline. This includes VX-864, currently in Phase 2 for alpha-1 antitrypsin (AAT) deficiency; VX-147, also in Phase 2, addressing APOL1-mediated focal segmental glomerulosclerosis (FSGS) and other serious kidney conditions; VX-880, a potential treatment for Type 1 Diabete… --- Source: https://sweetvaluelab.com/stocks/vrtx (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.