What Is VRTX Fair Value?
Vertex Pharmaceuticals Inc. (VRTX) fair value estimate using multiple valuation models, updated daily.
As of October 31, 2026, Vertex Pharmaceuticals Inc. (VRTX) has a composite fair value estimate of $297.02 based on four valuation models: DCF (41% weight), Graham Number (29% weight), PEG (29% weight), and DDM (0% weight). The current market price is $558.88, suggesting the stock is overvalued by 46.9%.
Data as of October 31, 2026 (today)
Composite Fair Value
Overvalued3 of 4 models$297.02
vs. current price of $558.88(-46.9%)
How Is VRTX Fair Value Calculated?
Four independent models estimate what VRTX is worth. Each uses different inputs and assumptions. The composite blends them by weight.
VRTX Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
41% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$387.94
-30.6%Overvalued
Inputs used
DDM (Dividend Discount Model)
0% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
N/A
This stock does not pay a dividend, so the DDM cannot be applied. The composite adjusts by redistributing this weight to the other models.
VRTX Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
29% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$183.55
-67.2%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
29% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$187.35
-66.5%Overvalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $558.88 is 30.6% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $3.12B | $2.95B |
| Year 2 | $3.29B | $2.93B |
| Year 3 | $3.47B | $2.91B |
| Year 4 | $3.65B | $2.89B |
| Year 5 | $3.85B | $2.87B |
| Year 6 | $4.05B | $2.85B |
| Year 7 | $4.27B | $2.84B |
| Year 8 | $4.50B | $2.82B |
| Year 9 | $4.74B | $2.80B |
| Year 10 | $4.99B | $2.78B |
| Terminal Value | $145.46B | $81.10B |
What Are VRTX's Key Financial Metrics?
Earnings & Growth
Current Price
$558.88
EPS (TTM)
$17.17
Forward P/E
27.4
Profit Margin
35.0%
Cash & Balance Sheet
Free Cash Flow
2.6B
EBITDA
5.1B
Book Value
$79.92
Total Debt
2B
What Do Analysts Say About VRTX?
Low
$350.00
Average
$571.46
High
$667.00
Upside
+2.3%
VRTX Fair Value FAQ
What is the fair value of VRTX?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), VRTX's estimated fair value is $297.02. The stock is currently trading at $558.88, which makes it overvalued by our analysis.
How is VRTX's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is VRTX overvalued or undervalued?
Based on our analysis, VRTX is overvalued. The current price of $558.88 is 46.9% above our estimated fair value of $297.02.
What do Wall Street analysts say about VRTX?
28 analysts cover Vertex Pharmaceuticals Inc. with a consensus rating of "Buy." The average price target is $571.46, ranging from $350.00 to $667.00. This implies 2.3% upside from the current price.