VRTX · Intrinsic value
Is Vertex Pharmaceuticals Incorporated (VRTX) overvalued or undervalued?
Vertex Pharmaceuticals Incorporated (VRTX) trades at the delayed market price of $499.74 a share. That price already implies revenue growth of 15.5% a year for 5 years. TickerWorth's fair value is $328.65 a share (52% above fair value), as of Oct 19, 2026. It is a model estimate, and every input behind it is sourced below.
Model by Miraaj Patel · generated from SEC filings and market data · Updated Oct 19, 2026 · How these pages are made
Is VRTX overvalued?
- Fair value
- $328.65
- Market price
- $499.74
- Downside to fair value
- 34.2%
- Verdict
- 52% above fair value
Reverse DCF: Today's price implies revenue growth of 15.5% a year for 5 years; our model assumes 10.4% a year on average over the same horizon.
What is VRTX's TickerWorth Score?
Middle of the pack — real strengths and real weaknesses
Compared with Healthcare companies in US
Its strongest point: a profitable, high-quality business. Its weakest: trades above our estimate of what it's worth.
- Value · 34 of 100
Cheaper than 34% of Healthcare companies in US
- Price vs worth · 23 of 100
- Quality · 78 of 100
More profitable than 78% of Healthcare companies in US
- Financial health · 76 of 100
Financially stronger than 76% of Healthcare companies in US
- Growth · 40 of 100
Growing faster than 40% of Healthcare companies in US
- Momentum · 53 of 100
Outperformed 53% of Healthcare companies in US over the past year
Confidence: High confidence · Scored
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VRTX DCF valuation: what the price assumes
At a recent price of $499.74, Vertex Pharmaceuticals Incorporated (VRTX) trades 52% above TickerWorth's blended fair value of $328.64 per share — a discounted-cash-flow model cross-checked against peer multiples and asset value — meaning the market currently prices VRTX overvalued vs our estimate of what the business is intrinsically worth. Our fair value sits below the market, an implied -34.2% move to close the gap if the business performs in line with our assumptions. This is an educational model, not a price target or a recommendation — the value moves with the inputs, which you can test yourself using the WACC slider below.
Read the full reasoning
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values VRTX at about $417.82 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.
The valuation discounts Vertex Pharmaceuticals Incorporated's projected free cash flows at a weighted-average cost of capital (WACC) of 7.1%, with a long-run terminal growth rate of 2.5%. About 82% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 15.5% annual revenue growth for VRTX. Our base case instead compounds to about 10.4% a year over the same forecast, so the market is pricing in materially faster growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, VRTX's modeled DCF value ranges from about $285.87 to $856.53 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Vertex Pharmaceuticals Incorporated would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of VRTX's intrinsic value. Figures update as new filings and prices come in.
Every input behind VRTX's DCF
| Input | Value |
|---|---|
| Base-year revenueVERTEX PHARMACEUTICALS INC / MA FY2025 10-K (accession 0000875320-26-000056): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2025 full year. | $12,001,300,000 |
| Base EBIT marginVERTEX PHARMACEUTICALS INC / MA FY2025 10-K (accession 0000875320-26-000056): us-gaap:OperatingIncomeLoss 4,173,300,000 / revenue 12,001,300,000 = 34.77%, FY2025. | 34.8% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 17% → 14% → 11% → 7% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.3% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 0.40 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesVERTEX PHARMACEUTICALS INC / MA FY2025 10-K (accession 0000875320-26-000056): WeightedAverageNumberOfDilutedSharesOutstanding = 258,000,000 shares, FY2025. | 258M |
| Market priceDelayed quote · as of 2026-10-19 14:07 UTC | $499.74 |
Change VRTX's assumptions
The discount-rate dial and the editable model
ProChange growth, margin and WACC yourself — Pro (7-day free trial, card required).
What does Vertex Pharmaceuticals Incorporated do?
What does it do?
Vertex Pharmaceuticals Incorporated operates as a biotechnology company in the United States, Europe, and internationally. The company offers transformative medicines for people with serious diseases with a focus on specialty markets, such as cystic fibrosis (CF), sickle cell disease (SCD), transfusion dependent beta thalassemia (TDT), and acute pain. It operates in the Biotechnology industry (Healthcare sector), headquartered in United States. The company employs roughly 6,400 people.
How does it make money?
The business turns $12.6B in annual revenue into profit. Out of every $100 of sales, about $38 is left as operating profit (operating margin of 38.1%), after a 55% gross margin on the products/services it sells. After all costs, taxes and interest, 35.0% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks solid: carries modest debt (0.1× equity), comfortably covers its short-term bills (3.2× current ratio), and is currently profitable.
Who at VRTX filed insider trades?
| Date | Insider | Relationship | What happened | Value | Filing |
|---|---|---|---|---|---|
| van Grunsven Jasper | EVP, CP and NPPO | Grant / award | — | Form 4 for van Grunsven Jasper (opens sec.gov in a new tab) | |
| Ambrose Kristen | SVP & Chief Accounting Officer | Grant / award | — | Form 4 for Ambrose Kristen (opens sec.gov in a new tab) | |
| SACHS BRUCE I | Director | Gift | — | Form 4 for SACHS BRUCE I (opens sec.gov in a new tab) | |
| Tatsis Ourania | EVP, Chief Reg. & Quality Off. | Grant / award | — | Form 4 for Tatsis Ourania (opens sec.gov in a new tab) | |
| Sachdev Amit | EVP Chief Patient & Ext Af Off | Grant / award | — | Form 4 for Sachdev Amit (opens sec.gov in a new tab) | |
| Tatsis Ourania | EVP, Chief Reg. & Quality Off. | Open-market sale | $787,485.00 | Form 4 for Tatsis Ourania (opens sec.gov in a new tab) |
A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans
Common questions
What is VRTX's intrinsic value?
TickerWorth's blended fair value for Vertex Pharmaceuticals Incorporated (VRTX) is $328.64 per share, versus a market price of $499.74 (52% above fair value).
Is VRTX overvalued or undervalued?
On our blended fair value VRTX looks overvalued vs fair value at $499.74. This is an educational estimate, not advice.
What discount rate is used for VRTX?
A WACC of 7.1% and a terminal growth rate of 2.5%.
Is Vertex Pharmaceuticals stock undervalued?
TickerWorth's fair value for Vertex Pharmaceuticals Incorporated (VRTX) is $328.65 against a market price of $499.74. Our read: 52% above fair value. This is a model estimate, not investment advice.
Vertex Pharmaceuticals (VRTX) DCF valuation and fair value
Our fair value for Vertex Pharmaceuticals Incorporated (VRTX) is $328.65, built on a 7.1% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Vertex Pharmaceuticals stock?
Today's price implies revenue growth of 15.5% a year for 5 years; our model assumes 10.4% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $499.74. A model estimate, not investment advice.
Vertex Pharmaceuticals (VRTX) insider trading
The most recent insider filing (SEC Form 4) for Vertex Pharmaceuticals Incorporated (VRTX): van Grunsven Jasper, EVP, CP and NPPO, grant / award on 2026-09-08. The latest filings are listed on this page. A disclosure, not a signal to trade.
How does VRTX compare with its peers?
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Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.