1. MARKETS
  2. SECTOR : PHARMA & BIOTECH
  3. INDUSTRY : MAJOR PHARMACEUTICALS
  4. VERTEX PHARMACEUTICALS, INC.
Vertex Pharmaceuticals, Inc.
XNAS: VRTX
425.88 1.96 (0.46%)
647.1K
XNAS Volume

XNAS 04 May, 2026 2:07 PM (EDT)

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Board Meeting
The next board meeting for Vertex Pharma is on 14 May 2026 for the purpose of Vertex Pharmaceuticals Inc Annual General Meeting for 2026 See details

Analyze undervaluation/ overvaluation of Vertex Pharma with current and 1 Year Forward PE

INSIGHT
Vertex Pharma is undervalued at both current PE and future earnings estimates.
Right Now : Current PE vs 5 year Average PE
Undervalued
Fair price

Based on 5Yr Average PE

460.4
Upside

Current PE versus 5Yr Average PE

8.1 %
1 Year Forward : 5 Yr Average PE & Projected 1Yr Forward EPS*
Undervalued
Fair price

Based on 1Yr Forward EPS

565.5
Upside

5 Yr Average PE & 1Yr Forward EPS

32.8 %
Info: The Vertex Pharma's current PE is 27.40 ,while its 5 year PE average is 29.6. Its forward PE based on analyst estimates is 22.3
Note: The forward PE ratio (or forward price-to-earnings ratio) is calculated by dividing the current share price of a company by the estimated(1Yr) future (“forward”) earnings per share (EPS) of that company.
Choose Stock, Parameter and Date Range
Furthest date for non subscribers is 04-05-2024

Analyze undervaluation/ overvaluation of Vertex Pharma with historical PE and PBV ratios

from 04 May, 2024 to 03 May, 2026

Restated PE

Strong Buy Zone

13.7% into PE buy sell zone

% time spent below current PE
0 20 40 60 80 100
Strong upside potential
Gains already realized

Out of 248 days, Vertex Pharma traded 34 (13.7%) days below the current PE of on Restated basis.

Originally Reported PE

Strong Buy Zone

14.9% into PE buy sell zone

% time spent below current PE
0 20 40 60 80 100
Strong upside potential
Gains already realized

Out of 235 days, Vertex Pharma traded 35 (14.9%) days below the current PE of on Originally Reported basis.

Note: This is a reverse percentile score. Values close to 100% are bad while values close to 0% are good. Days when PE is negative are not considered in the analysis
PE range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
25-27
17 7.2% 17 7.2%
27-28
Current PE is 27.4
44 18.7% 61 26.0%
28-29
40 17.0% 101 43.0%
29-30
50 21.3% 151 64.3%
30-31
35 14.9% 186 79.1%
31-32
27 11.5% 213 90.6%
32-34
22 9.4% 235 100.0%
Total 235 235
PE range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
25-27
16 6.5% 16 6.5%
27-28
Current PE is 27.4
44 17.7% 60 24.2%
28-29
41 16.5% 101 40.7%
29-30
50 20.2% 151 60.9%
30-31
40 16.1% 191 77.0%
31-32
35 14.1% 226 91.1%
32-34
22 8.9% 248 100.0%
Total 248 248

FAQ

  • What is the PE ratio?

    In its simplest definition, the price-to-earnings ratio (PE ratio) represents the price an investor pays per dollar of a company's earnings.
    For example, if a company has a PE ratio of 25, investors are willing to pay USD 25 for each dollar of the company's current earnings. This indicates that investors value the stock at 25 times its current earnings, with an expectation of future earnings growth.
    The PE ratio fluctuates based on investor sentiment towards a company. Positive sentiment drives the stock price higher, resulting in a higher PE ratio (investors pay more for each dollar of earnings). Conversely, negative sentiment lowers the PE ratio (investors pay less for each dollar of earnings).
  • What is the PE buy/sell zone?

    The PE buy/sell zone is calculated based on how many days a stock has traded at its current PE level.
    To do this, we compare the current PE to the stock’s historical PE performance, to find out how often (for how many days in the past) the stock has traded at its current PE value.
    If the stock has usually traded above its current PE level (it’s at a higher PE for the majority of trading days), then the stock is cheaper than usual and in the PE buy zone.
    If the stock has usually traded below its current PE level (it’s at a lower PE for the majority of trading days), then the stock is more expensive than usual and in the PE sell zone.
  • How is the PE buy sell zone useful?

    The PE buy sell zone tells you if a stock’s current PE level is unusually high or low, and if a stock doesn’t typically trade at that level. It helps investors identify stocks that are undervalued or overvalued in terms of their typical PE trading behavior.
    Investors should keep in mind that the buy zone/sell zone is not a foolproof buy or sell signal. For example, the PE of a stock may have fallen substantially due to adverse events or negative news. Or the PE may have risen sharply after the company has won new orders, made an acquisition, announced a buyback, or some other positive event. PE Buy/Sell Zone signals should be looked at in conjunction with other information.
  • Why are the number of days different for Restated and Originally Reported data?

    This can be because of any of the 2 following reasons:
    1. Days when PE is negative are not considered in the analysis. So if only 1 of the Restated or Originally Reported PE is negative and the other is not, then the days will be different
    2. Companies have reported Originally Reported data for limited period.