Vertex Pharmaceuticals Incorporated (VRTX) Company Bio
Vertex Pharmaceuticals engages in discovering, developing, manufacturing, and commercializing small molecule drugs for patients with serious diseases in specialty markets. The company focuses on developing and commercializing therapies for the treatment of cystic fibrosis (CF); and advancing its research and early-stage development programs. The company was founded in 1989 and is based in Boston, Massachusetts.
VRTX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for VRTX, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Vertex Pharmaceuticals Inc ranked in the 98th percentile in terms of potential gain offered. Our DCF model suggests the stock is undervalued by 14475.67%; returns of such proportions should be viewed with some skepticism, though. In terms of the factors that were most noteworthy in this DCF analysis for VRTX, they are:
The compound growth rate in the free cash flow of Vertex Pharmaceuticals Inc over the past 3.5 years is 2.66%; that's better than 93.09% of cash flow producing equities in the Healthcare sector, where it is classified.
The business' balance sheet suggests that 1% of the company's capital is sourced from debt; this is greater than merely 4.58% of the free cash flow producing stocks we're observing.
VRTX's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 58.73% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
OMI, NVCR, USNU, ANIP, and CORT can be thought of as valuation peers to VRTX, in the sense that they are in the Healthcare sector and have a similar price forecast based on DCF valuation.
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