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VRTX Price/Volume Stats

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

We started the process of determining a valid price forecast for Vertex Pharmaceuticals Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Vertex Pharmaceuticals Inc ranked in the 98th percentile in terms of potential gain offered. As the table below shows, the model suggests the stock is dramatically undervalued -- investors should note, though, that such returns are always unlikely and not to be expected. In terms of the factors that were most noteworthy in this DCF analysis for VRTX, they are:

• The company's debt burden, as measured by earnings divided by interest payments, is 52.77; that's higher than 92.93% of US stocks in the Healthcare sector that have positive free cash flow.
• The business' balance sheet reveals debt to be 1% of the company's capital (with equity being the remaining amount). Approximately just 6.16% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
• VRTX's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 52.54% of tickers in our DCF set.

For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as VRTX, try THC, NVAX, BMRN, KMDA, and AMEH.