Overview
Discounted cash flow
Income / accounting-based
Multiples & assets
Scenario
Toolbox
Weighted blend
$2,211.96
+394.25% vs spot
Strong Buy
Spot price
$447.54
Mkt cap $113.59B
subtle cardAnalyst PT consensus
$552.27
+23.40% vs spot
subtle cardMethods covered
15 / 16
14 in blend
subtle cardFootball field
VRTX · fair-value range by method
Method comparison
VRTX · fair value by valuation framework
| Method | Category | Fair value | Range | vs spot | Weight | Driver | Conf. |
|---|---|---|---|---|---|---|---|
| DCF · FCFF | dcf | $5,444.48 | $1,577.35 – $6,189.67 | +1116.53% | 23.7% | WACC 4.9%, g₀=19.3%, gₗ=4.4% | high |
| DCF · FCFE | dcf | $1,845.28 | $949.39 – $6,162.74 | +312.32% | 17.8% | kₑ 5.8%, g₀=19.3%, gₗ=4.4% | high |
| Residual income | income | $109.39 | $96.26 – $122.52 | -75.56% | 11.8% | BV 77.47, ROE 21.2% → kₑ | high |
| EVA / MVA | income | $5,604.43 | $4,931.89 – $6,276.96 | +1152.27% | 8.3% | IC 17.5B, WACC 4.9% | high |
| P/E · sector | multiple | $337.04 | $296.60 – $377.48 | -24.69% | 14.2% | EPS 15.32 × peer P/E 22.0 | med |
| P/S · sector | multiple | $200.46 | $170.39 – $230.53 | -55.21% | 3.6% | Rev/sh 50.12 × peer P/S 4.00 | med |
| EV / EBITDA | multiple | $314.29 | $276.58 – $352.01 | -29.77% | 11.8% | EBITDA × peer 15.0× − ND -1.2B | high |
| EV / EBIT | multiple | $360.67 | $306.57 – $414.77 | -19.41% | 2.4% | EBIT × peer 18.0× − ND | med |
| EV / Sales | multiple | $175.40 | $149.09 – $201.70 | -60.81% | 2.4% | Sales × peer 3.40× − ND | med |
| PEG-anchored | multiple | $398.62 | $338.83 – $458.42 | -10.93% | 1.2% | PEG=1, fwd EPS g 26.0% | med |
| Earnings power | intrinsic | $351.61 | $309.42 – $393.81 | -21.43% | 0.6% | NOPAT / WACC, no growth | med |
| Graham revised | intrinsic | $712.47 | $605.60 – $819.34 | +59.20% | 0.6% | EPS×(8.5+2g)·4.4/Y | low |
| Lynch P/E=g | intrinsic | $295.98 | $251.59 – $340.38 | -33.86% | 0.6% | PE = g (19.3) | low |
| Book NAV | asset | $77.47 | $73.60 – $81.35 | -82.69% | 1.2% | (Assets − Liabilities) / Shares | high |
| Liquidation | asset | $51.26 | $43.57 – $58.94 | -88.55% | — | Cash 100% + non-cash 70% − Liab. | low |
| Reverse DCF | reverse | — | — | — | — | Implied g -20.0% · Pessimistic — market pricing decline | high |
Cost-of-capital build-up
CAPM cost of equity, after-tax cost of debt, WACC. Risk-free as of 2026-05-12.
| Risk-free rate (US 10y Treasury)rf | 4.46% |
| Equity beta (0.30)β | × 0.30 |
| Equity risk premiumERP | 4.46% |
| Cost of equity (CAPM)kₑ | 5.80% |
| Pre-tax cost of debtkd | 0.34% |
| Effective tax ratet | 14.9% |
| After-tax cost of debt | 0.29% |
| Equity weight$18.7B | 82.8% |
| Debt weight$3.9B | 17.2% |
| WACC | 4.85% |
Growth assumptions
Blended forward growth used as DCF default; terminal pegged to long-run nominal GDP.
| Analyst forward revenue growthFMP | 7.98% |
| Analyst forward EPS growthFMP | 26.02% |
| Historical 5y revenue CAGRFY | 12.37% |
| Historical 5y EPS CAGRFY | 19.36% |
| Sustainable g (ROE × retention)Δ | 21.18% |
| Blended near-term growth (g₀) | 19.32% |
| Terminal growth (gₗ) | 4.35% |
Sources
- FMP /analyst-estimates— 8 rows(as of 2023-12-31)
- Treasury rates · 10y— 4.46% rf(as of 2026-05-12)
- market_risk_premium · DB— 4.46% ERP(as of 2026-05-13)
- Sector multiple defaults— Healthcare (live sector PE unavailable)
- FMP /price-target-consensus— mean $552.27
This page is generated by a quantitative valuation engine for research purposes only and does not constitute investment advice. Methodology follows standard CFA / Damodaran frameworks; assumptions are driven by analyst consensus from Financial Modeling Prep and reported financial statements.