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Vertex Pharmaceuticals Shiller PE Ratio

: 344.46 (As of Today)
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As of today (2020-10-01), Vertex Pharmaceuticals's current share price is $272.12. Vertex Pharmaceuticals's E10 for the quarter that ended in Jun. 2020 was $0.79. Vertex Pharmaceuticals's Shiller PE Ratio for today is 344.46.

NAS:VRTX' s Shiller PE Ratio Range Over the Past 10 Years
Min: 326.53   Med: 674.02   Max: 8209.67
Current: 342.33

326.53
8209.67

During the past years, Vertex Pharmaceuticals's highest Shiller PE Ratio was 8209.67. The lowest was 326.53. And the median was 674.02.

NAS:VRTX's Shiller PE Ratio is ranked lower than
94% of the 110 Companies
in the Biotechnology industry.

( Industry Median: 48.58 vs. NAS:VRTX: 342.33 )

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Vertex Pharmaceuticals's adjusted earnings per share data for the three months ended in Jun. 2020 was $3.180. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $0.79 for the trailing ten years ended in Jun. 2020.

Shiller PE for Stocks: The True Measure of Stock Valuation


Vertex Pharmaceuticals Shiller PE Ratio Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Vertex Pharmaceuticals Annual Data
Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Shiller PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 7,855.55

Vertex Pharmaceuticals Quarterly Data
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20
Shiller PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 7,855.55 671.58 365.21

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Vertex Pharmaceuticals Shiller PE Ratio Distribution

* The bar in red indicates where Vertex Pharmaceuticals's Shiller PE Ratio falls into.



Vertex Pharmaceuticals Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Vertex Pharmaceuticals's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=272.12/0.79
=344.46

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Vertex Pharmaceuticals's E10 for the quarter that ended in Jun. 2020 is calculated as:

For example, Vertex Pharmaceuticals's adjusted earnings per share data for the three months ended in Jun. 2020 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Jun. 2020 (Change)*Current CPI (Jun. 2020)
=3.18/109.3175*109.3175
=3.180

Current CPI (Jun. 2020) = 109.3175.

Vertex Pharmaceuticals Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201009 -1.040 92.277 -1.232
201012 -0.900 92.914 -1.059
201103 -0.870 94.890 -1.002
201106 -0.850 95.319 -0.975
201109 1.020 95.529 1.167
201112 0.770 95.632 0.880
201203 0.430 97.075 0.484
201206 -0.310 96.661 -0.351
201209 -0.270 97.595 -0.302
201212 -0.350 97.158 -0.394
201303 -1.430 98.107 -1.593
201306 -0.260 98.557 -0.288
201309 -0.540 98.536 -0.599
201312 0.190 98.692 0.210
201403 -1.000 100.023 -1.093
201406 -0.680 100.520 -0.740
201409 -0.720 100.176 -0.786
201412 -0.740 98.604 -0.820
201503 -0.830 99.824 -0.909
201506 -0.780 100.691 -0.847
201509 -0.390 100.346 -0.425
201512 -0.310 99.957 -0.339
201603 -0.170 100.947 -0.184
201606 -0.260 101.524 -0.280
201609 -0.160 101.988 -0.171
201612 0.130 102.456 0.139
201703 0.990 103.167 1.049
201706 0.070 103.278 0.074
201709 -0.410 104.070 -0.431
201712 0.390 104.578 0.408
201803 0.810 105.708 0.838
201806 0.800 106.324 0.823
201809 0.500 106.695 0.512
201812 5.970 106.200 6.145
201903 1.030 107.818 1.044
201906 1.030 108.250 1.040
201909 0.220 108.577 0.222
201912 2.230 108.841 2.240
202003 2.290 108.173 2.314
202006 3.180 109.318 3.180

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Vertex Pharmaceuticals  (NAS:VRTX) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


Vertex Pharmaceuticals Shiller PE Ratio Related Terms


Vertex Pharmaceuticals Shiller PE Ratio Headlines

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