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Fair Value for Vertex Pharmaceuticals (VRTX)

See growth priced into Vertex Pharmaceuticals (VRTX): reverse DCF, implied rate vs history and analysts, FCF view. Free intrinsic value calculator for education.

FCF / share

Fair value (multi-method)

Four independent methods triangulate what VRTX is worth. The headline is the Forward-DCF intrinsic value at a normalized growth rate; the margin of safety compares it to the current price.

Estimated fair value (Forward DCF)

$770.70

Margin of safety
+38.68% vs current price $472.57

Method range

$83.42 $770.70

median $492.79

Methods disagree

Valuation methods

Each method’s implied fair value per share and its upside versus the current price. Missing methods (no analyst coverage, negative earnings, etc.) are shown as “—”.

  • Forward DCF$770.70
  • Exit multiple$437.64
  • Analyst target$547.93
  • Graham number$83.42

Stock price

$472.57

FCF / share (TTM)

$5.10

3Y FCF CAGR

7.5%

Fair value @ hist. growth

$218.40

This analysis is for informational purposes only and is not financial advice. Scenario prices and DCF-style figures depend on your assumptions and data from public filings and estimates. They are not forecasts of future returns.

Implied FCF growth

17.0%

per year over your projection horizon

Premium vs DCF

Margin of safety -116.4% vs hist-growth DCF

Historical 3Y CAGR

7.5%

Your model implies

17.0%

Analyst consensus is EPS-only — no comparable FCF / share estimate to show on this basis.

Model inputs

Move sliders to test how the reverse DCF reacts. Historical-growth markers show where the company has actually grown over the last cycle.

Discount rate (cost of equity proxy)6.1%
Terminal growth2.50%
Projection years10 yr
FCF growth per year (supplemental projection)8%
3Y CAGR 8%

Undiscounted FCF per share over 10 years at 8% annual growth.

Sensitivity — implied growth vs your assumptions

Each cell shows the per-share growth rate the market would need to justify the current price at that combination of discount rate (rows) and terminal growth (columns). Your selected inputs are highlighted.

Row axis: discount rate. Column axis: terminal growth.Terminal g →↓ Discount1.5%2.0%2.5%3.0%3.5%
5.0%15.5%13.9%12.0%9.7%6.8%
5.1%16.0%14.5%12.7%10.5%7.8%
6.1%19.6%18.4%17.0%15.5%13.6%
7.1%22.7%21.7%20.6%19.4%18.0%
8.1%25.5%24.7%23.7%22.7%21.6%
Color≤ historical CAGRModerate premiumHigh premium (≥ 15pp above hist)Your inputs

Historical multiples

Each bar is the trailing five-year range (low left, high right). Filled portion runs from low to today; the dot marks today; the small tick marks the five-year median. Low, median, and high are listed under each bar.

P/EToday29.3· at high
5Y low22.3
Median24.2
5Y high29.3
P/SToday9.6
5Y low7.5
Median9.4
5Y high10.6
EV/EBITDAToday23.6
5Y low14.5
Median20.7
5Y high207.4

Net cash

$1.21B

Total debt − cash

Beta

0.29

Vs market benchmark

Frequently asked questions

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