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Vertex PharmaceuticalsBSP:VRTX34 +2.44%87 Cyclically Adjusted PB Ratio is 11.52 as of Jul. 20, 2026, which is 35% below its 10-year median of 17.86. GuruFocus rates BSP:VRTX34 with a GF Score™ of 87/100 and a GF Value™ of R$642.20 (Fairly Valued). The stock has 5 warning signs investors should review. Among 698 Biotechnology companies, Vertex Pharmaceuticals ranks worse than 89.11% on this metric.
The historical rank and industry rank for Vertex Pharmaceuticals's Cyclically Adjusted PB Ratio or its related term are showing as below:
BSP:VRTX34'
s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 10.21 Med: 17.86 Max: 39.61
Current: 11.69
During the past years, Vertex Pharmaceuticals's highest Cyclically Adjusted PB Ratio was 39.61. The lowest was 10.21. And the median was 17.86.
BSP:VRTX34's Cyclically Adjusted PB Ratio is ranked worse than 89.11% of 698
companies
in the Biotechnology industry
Industry Median: 1.605
vs BSP:VRTX34: 11.69
The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.
Vertex Pharmaceuticals's adjusted book value per share data for the three months ended in Mar. 2026 was R$99.596. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is R$53.85 for the trailing ten years ended in Mar. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Vertex Pharmaceuticals (BSP:VRTX34) Cyclically Adjusted PB Ratio Explanation
Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.
Vertex Pharmaceuticals Cyclically Adjusted PB Ratio Related Terms
Vertex Pharmaceuticals Cyclically Adjusted PB Ratio Historical Data
* Premium members only.
The historical data trend for Vertex Pharmaceuticals's Cyclically Adjusted PB Ratio can be seen below:
* 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.
Vertex Pharmaceuticals Cyclically Adjusted PB Ratio Chart
BSP:VRTX34 vs REGN, ALNY, RVMD: Cyclically Adjusted PB Ratio Comparison
For the Biotechnology subindustry, Vertex Pharmaceuticals's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio 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 Cyclically Adjusted PB Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Vertex Pharmaceuticals's Cyclically Adjusted PB Ratio distribution charts can be found below:
* The bar in red indicates where Vertex Pharmaceuticals's Cyclically Adjusted PB Ratio falls into.
Vertex Pharmaceuticals Cyclically Adjusted PB Ratio Calculation
Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.
* 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.
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.
What does a Cyclically Adjusted PB Ratio of 11.52 mean?
Vertex Pharmaceuticals (BSP:VRTX34) has a Cyclically Adjusted PB Ratio of 11.52 as of Jul. 20, 2026. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Vertex Pharmaceuticals and its competitors. This is 35% below median its historical median of 17.86. Over the past decade, Vertex Pharmaceuticals' Cyclically Adjusted PB Ratio has ranged from 10.21 to 39.61. According to the industry distribution chart, Vertex Pharmaceuticals ranks #622 out of 698 companies in the Biotechnology industry, placing it in the top 89.1%.
Is Vertex Pharmaceuticals' Cyclically Adjusted PB Ratio too high?
Vertex Pharmaceuticals' current Cyclically Adjusted PB Ratio of 11.52 is 35% below median its 10-year median of 17.86. Over the past 10 years, this metric has ranged from a low of 10.21 to a high of 39.61. The Biotechnology industry median Cyclically Adjusted PB Ratio is 1.61. Vertex Pharmaceuticals' value of 11.52 is 617.8% above this industry median. Based on the distribution chart, Vertex Pharmaceuticals ranks #622 out of 698 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Vertex Pharmaceuticals has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Vertex Pharmaceuticals' Cyclically Adjusted PB Ratio compare to REGN and ALNY?
According to the Biotechnology industry distribution chart, Vertex Pharmaceuticals ranks #622 out of 698 companies for Cyclically Adjusted PB Ratio. This places Vertex Pharmaceuticals in the lower half of its industry. The industry median Cyclically Adjusted PB Ratio is 1.61. Vertex Pharmaceuticals' value of 11.52 is 617.8% above this benchmark. Historically, Vertex Pharmaceuticals' own Cyclically Adjusted PB Ratio has ranged from 10.21 to 39.61 over the past decade. While the company's 10-year median is 17.86 vs. the industry median of 1.61, Vertex Pharmaceuticals has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cyclically Adjusted PB Ratio for a Biotechnology company?
The median Cyclically Adjusted PB Ratio among Biotechnology companies is 1.61, based on 698 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Vertex Pharmaceuticals's current Cyclically Adjusted PB Ratio of 11.52 is 617.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cyclically Adjusted PB Ratio mean?
A high Cyclically Adjusted PB Ratio can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Vertex Pharmaceuticals and its competitors. For the Biotechnology industry, the median Cyclically Adjusted PB Ratio is 1.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vertex Pharmaceuticals's current Cyclically Adjusted PB Ratio is 11.52, which is 35% below median its own 10-year median of 17.86. 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?
Based on GuruFocus' analysis, Vertex Pharmaceuticals (BSP:VRTX34) is currently considered Fairly Valued. The stock's GF Value™ is R$642.20, compared to a current price of R$620.50 — trading 3.4% below its estimated fair value. The current Cyclically Adjusted PB Ratio is 11.52, which is 35% below median its 10-year median of 17.86 and 617.8% above the Biotechnology industry median of 1.61. Vertex Pharmaceuticals' overall GF Score™ is 87/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted PB Ratio calculated?
Cyclically Adjusted PB Ratio is calculated from a company's financial statements. For Vertex Pharmaceuticals (BSP:VRTX34), the current Cyclically Adjusted PB Ratio is 11.52 as of Jul. 20, 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 (BSP:VRTX34) Overvalued in 2026?
Based on GuruFocus' analysis, Vertex Pharmaceuticals stock appears to be undervalued.
The current stock price of R$620.50 is trading 3.4% below its estimated GF Value™ of R$642.20.
GuruFocus considers Vertex Pharmaceuticals to be Fairly Valued.
Key valuation signals for BSP:VRTX34:
Cyclically Adjusted PB Ratio: 11.52 (35% below median its 10-year median of 17.86)
GF Value™: R$642.20 vs. price of R$620.50 (3.4% below fair value)
Industry Position: 617.8% above the Biotechnology median (#622 of 698)
No single metric tells the full story. See the BSP:VRTX34 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.
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