Evaluating Vertex Pharmaceuticals – Beyond Technicals, Focus on Fundamentals!

By Harris Dyer • Monday, December 11 16:43 • Permanent Link

Large-cap Health Care company Vertex Pharmaceuticals has moved 1.8% so far today on a volume of 1,252,936, compared to its average of 1,218,241. In contrast, the S&P 500 index moved 0.0%.

Vertex Pharmaceuticals trades -4.15% away from its average analyst target price of $371.72 per share. The 25 analysts following the stock have set target prices ranging from $301.63 to $423.21, and on average have given Vertex Pharmaceuticals a rating of buy.

If you are considering an investment in VRTX, you'll want to know the following:

Vertex Pharmaceuticals's current price is 159.0% above its Graham number of $137.55, which implies that at its current valuation it does not offer a margin of safety
Vertex Pharmaceuticals has moved 11.4% over the last year, and the S&P 500 logged a change of 15.4%
Based on its trailing earnings per share of 13.31, Vertex Pharmaceuticals has a trailing 12 month Price to Earnings (P/E) ratio of 26.8 while the S&P 500 average is 15.97
VRTX has a forward P/E ratio of 23.2 based on its forward 12 month price to earnings (EPS) of $15.35 per share
The company has a price to earnings growth (PEG) ratio of 2.34 — a number near or below 1 signifying that Vertex Pharmaceuticals is fairly valued compared to its estimated growth potential
Its Price to Book (P/B) ratio is 5.56 compared to its sector average of 4.08
Vertex Pharmaceuticals Incorporated, a biotechnology company, engages in developing and commercializing therapies for treating cystic fibrosis (CF).
Based in Boston, the company has 4,800 full time employees and a market cap of $91.81 Billion.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.