Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2026-06-27), Vertex Pharmaceuticals's Beta is 0.0353.
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. We usually compare beta to 1. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market.
Beta is primarily used in the Capital Asset Pricing Model (CAPM) to calculate the Cost of Equity, which can be used in the calculation of WACC %. The formula of Cost of Equity is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Biotechnology subindustry, Vertex Pharmaceuticals's Beta, along with its competitors' market caps and Beta data, can be viewed below:
* 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. Note that "N/A" values will not show up in the chart.
Vertex Pharmaceuticals Beta vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Vertex Pharmaceuticals's Beta distribution charts can be found below:
* The bar in red indicates where Vertex Pharmaceuticals's Beta falls into.
Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. A stock's beta can be calculated by dividing the product of the covariance of the individual stock's returns and the market's returns by the variance of the market's returns over a specified period. Basically, GuruFocus uses the returns calculated over three-year period.
Vertex Pharmaceuticals (CHIX:VX1D) has a Beta of 0.0353 as of Jun. 27, 2026. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Vertex Pharmaceuticals and its competitors.
Is Vertex Pharmaceuticals' Beta too high?
Vertex Pharmaceuticals' current Beta is 0.0353. Overall, Vertex Pharmaceuticals has a GF Score™ of 87/100, reflecting its overall financial health beyond just this single metric.
How does Vertex Pharmaceuticals' Beta compare to REGN and ALNY?
Vertex Pharmaceuticals' Beta of 0.0353 can be compared against companies in the Biotechnology industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beta for a Biotechnology company?
A good Beta depends on the Biotechnology industry context. However, Beta should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beta mean?
A high Beta can signal that a stock is expensive relative to its fundamentals. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Vertex Pharmaceuticals and its competitors. Vertex Pharmaceuticals's current Beta is 0.0353. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vertex Pharmaceuticals stock overvalued right now?
Vertex Pharmaceuticals (CHIX:VX1D) has a current Beta of 0.0353. The stock's GF Value™ is €329.60, compared to a current price of €322.40 — trading 2.2% below its estimated fair value. The current Beta is 0.0353. Vertex Pharmaceuticals' overall GF Score™ is 87/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beta calculated?
Beta is calculated from a company's financial statements. For Vertex Pharmaceuticals (CHIX:VX1D), the current Beta is 0.0353 as of Jun. 27, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Vertex Pharmaceuticals (CHIX:VX1D) Overvalued in 2026?
Based on GuruFocus' analysis, Vertex Pharmaceuticals stock appears to be undervalued.
The current stock price of €322.40 is trading 2.2% below its estimated GF Value™ of €329.60.
Key valuation signals for CHIX:VX1D:
Beta: 0.0353
GF Value™: €329.60 vs. price of €322.40 (2.2% below fair value)
No single metric tells the full story. See the CHIX:VX1D stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vertex Pharmaceuticals is a global biotechnology company that discovers and develops small-molecule drugs for the treatment of serious diseases. Its key drugs are Kalydeco, Orkambi, Symdeko, and Trikafta/Kaftrio, and Alyftrek for cystic fibrosis, where Vertex therapies remain the standard of care globally. Vertex has diversified its portfolio through Casgevy, a gene-editing therapy for beta thalassemia and sickle-cell disease, and Journavx, a non-opioid pain medication approved for the treatment of moderate-to-severe acute pain in adults. Additionally, Vertex is evaluating small-molecule inhibitors of APOL1-mediated kidney diseases. Vertex is also investigating cell therapies to deliver a potential functional cure for type 1 diabetes.
87GF Score
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