* Note: Prices are in Million (M) USD.
Description:
Vertex Pharmaceuticals, Inc. is an American biopharmaceutical company based in Boston, Massachusetts.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $4,570 M
Debt : $1,750 M
EBITDA : $4,801 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Healthcare
Industry: Biotechnology
Based on industry, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 19.49
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $625 M
Average Revenue: $3,088 M
Revenue Converted To Free Cash Flow (%): 20.2%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $11,020 M
Revenue 4 Years Ago (2020-12-31): $6,206 M
Last 5 Years Average Revenue Growth: 16%
Since Revenue Growth is between 15 - 20, 4 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $258 M
Share Count 5 Years Ago (2020-12-31): $263 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $22.18
Trailing 12-Month Earnings Per Share (EPS): $17.94
Average Earnings Per Share (EPS): $20.06
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: -33.2%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $391
52-Week Low: $363
Threshold Price (15% Above 52-Week Low): $417
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $100,069 M
Since Market Cap is between 100B - 500B, 3 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 4% exposure of Total Portfolio.
Value-Trade has assigned 31 points to above Vertex Pharmaceuticals Inc (VRTX) stock.
Last 6 Years Avg PE 27.92, Fair Value PE 25, Industry Based PE 20, Growth Based PE 15, RCFC Based PE 28.2, ROE Based PE 10, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 20.46. Value-Trades has assined P/E value 20.46. Since an average (Current Year EPS + Next Year EPS) earning per share is $20.06.
The fair value of Vertex Pharmaceuticals Inc (VRTX) stock should be (20.46 x $20.06) = $410.38.
