What is Vertex Pharmaceuticals Incorporated (VRTX) DCF Fair Value and Intrinsic Value in 2026?

Vertex Pharmaceuticals Incorporated (VRTX) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Vertex Pharmaceuticals Incorporated's historical Return on Invested Capital (ROIC) and Moat Rating?

Vertex Pharmaceuticals Incorporated operates in the Healthcare sector (Biotechnology) with an economic moat rating of WIDE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Vertex Pharmaceuticals Incorporated's financial health rating and Piotroski F-Score?

Vertex Pharmaceuticals Incorporated's balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Vertex Pharmaceuticals Incorporated (VRTX) for quarterly SEC filing thesis breaks?

LocalAlpha audits Vertex Pharmaceuticals Incorporated's 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksVRTX

VRTX

Vertex Pharmaceuticals IncorporHealthcare / BiotechnologyINTACT

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 markets TRIKAFTA/KAFTRIO for people with CF with at least one F508del mutation for 2 years of age and older; ALYFTREK for the treatment for people with CF 6 years of age and older; SYMDEKO/SYMKEVI for treatment of patients with CF 6 years of age and older; ORKAMBI for CF patients 1 year or older; and KALYDECO for the treatment of patients with 1 month or older who have CF with ivacaftor. The company also develops CASGEVY for the treatment of SCD and TDT; JOURNAVX for the treatment of acute pain in adults; VX-522, a CFTR mRNA therapeutic designed to treat the underlying cause of CF, which is in Phase 1/2 clinical trial; inaxaplin for the treatment of APOL1-mediated kidney disease, which is in single Phase 2 trial; VX-264 for treating Type 1 Diabetes; VX-670 for the treatment of myotonic dystrophy type 1; and VX-407, a small molecule corrector for the treatment of autosomal dominant polycystic kidney disease. In addition, the company also operates as a clinical-stage pharmaceutical company, that focuses on the discovery, development, and commercialization of novel therapeutics for rare endocrine diseases and endocrine-related tumors. The company sells its products primarily to specialty pharmacy and distributors, wholesalers, retail pharmacies, hospitals, and clinics. Vertex Pharmaceuticals Incorporated has a strategic collaboration with AbCellera Biologics Inc. to research, develop, manufacture, and commercialize multispecific T-cell engagers (TCEs) for autoimmune diseases and other conditions. Vertex Pharmaceuticals Incorporated was founded in 1989 and is headquartered in Boston, Massachusetts.

Share Price

$515.44

52W: $374.17 - $560.25

DCF Fair Value

$354.54

-45.4% Premium

Thesis Hub

P/E (TTM)

30x

ROIC

28.6%

Operating Margin

38.1%

FCF Yield

Debt / Equity

0.1x

Piotroski Score

7/9

Altman Z-Score

3.02

Market Cap

$130.6B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($354.54)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$354.54

MOS Buy Target (-25%)

$265.91

Valuation Overlays: DCF Fair Value ($354.54) 25% MOS Buy Target ($265.91) Revised Graham ($584.60) Graham Number ($175.82)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$515.44

DCF Fair Value

$355.06

-45.2% Premium

Starting Free Cash Flow ($M)$2,628M

$100M$2,628M (Reported)$50,000M

Stage 1 Growth (Years 1-5)18.0%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)-$5,900M (Net Cash)

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$34.0B

PV of Terminal Value

$49.9B

Implied Enterprise Value

$83.9B

Implied Equity Value

$89.8B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$3,101	$3,659	$4,318	$5,095	$6,012	$6,283	$6,566	$6,861	$7,170	$7,492
Present Value (PV)	$2,845	$3,080	$3,334	$3,610	$3,908	$3,746	$3,592	$3,443	$3,301	$3,165

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-193.2% Premium

$175.82

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $17.19BVPS: $79.92

Revised Graham Formula+11.8%

$584.60

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings1.9% Yield

$9.87 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $2.5BYield: 1.9%

Reverse DCF: Market Growth Expectation

HIGH BARRIER

17.7% CAGR (Next 10 Yrs)

At the current price of $515.44, the market is assuming the business will compound Free Cash Flow at 17.7% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

ℹ Fair expectations: Requires steady execution.

Autonomous Thesis Underwriting

Surveil VRTX with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Vertex Pharmaceuticals Incorpor. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 38.1% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Vertex Pharmaceuticals Incorpor (VRTX) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Vertex Pharmaceuticals Incorpor.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Vertex Pharmaceuticals Incorpor has an estimated DCF intrinsic fair value of $354.54 per share compared to its current market price of $515.44. This represents an estimated 45.4% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $175.82.