Vertex Pharmaceuticals (WBO:VRTX) Moat Score: 8/10 (As of Jul. 01, 2026)


WBO:VRTX Vertex Pharmaceuticals Inc WBO:VRTX
91 GF Score
Price €435.40
GF Value €440.30
Valuation Fairly Valued
! 4 Warning Signs
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What is Vertex Pharmaceuticals Moat Score?

Vertex Pharmaceuticals WBO:VRTX +0.52% 91 Moat Score is 8 as of Jul. 01, 2026. GuruFocus rates WBO:VRTX with a GF Score™ of 91/100 and a GF Value™ of €440.30 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,400 Biotechnology companies, Vertex Pharmaceuticals ranks better than 99.93% on this metric.

Vertex Pharmaceuticals has the Moat Score of 8, which implies that the company might have Wide Moat - Clear and robust wide moat.

Vertex Pharmaceuticals has Wide Moat: Vertex Pharmaceuticals possesses a robust wide moat due to its valuable intellectual property, strong R&D capabilities, and significant pricing power in the cystic fibrosis market. Its innovation and patent portfolio provide durable competitive advantages.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Vertex Pharmaceuticals might have Wide Moat - Clear and robust wide moat.

Vertex Pharmaceuticals  (WBO:VRTX) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Vertex Pharmaceuticals Moat Score Related Terms

WBO:VRTX vs REGN, ALNY, RVMD: Moat Score Comparison

For the Biotechnology subindustry, Vertex Pharmaceuticals's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Vertex Pharmaceuticals's Moat Score distribution charts can be found below:

* The bar in red indicates where Vertex Pharmaceuticals's Moat Score falls into.


WBO:VRTX
91GF Score
Vertex Pharmaceuticals Inc WBO:VRTX
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 8 mean?
Vertex Pharmaceuticals (WBO:VRTX) has a Moat Score of 8 as of Jul. 01, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Vertex Pharmaceuticals ranks #1 out of 1400 companies in the Biotechnology industry, placing it in the top 0.099999999999994%.
Is Vertex Pharmaceuticals' Moat Score too high?
Vertex Pharmaceuticals' current Moat Score is 8. The Biotechnology industry median Moat Score is 2.00. Vertex Pharmaceuticals' value of 8 is 300% above this industry median. Based on the distribution chart, Vertex Pharmaceuticals ranks #1 out of 1400 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, Vertex Pharmaceuticals has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Vertex Pharmaceuticals' Moat Score compare to REGN and ALNY?
According to the Biotechnology industry distribution chart, Vertex Pharmaceuticals ranks #1 out of 1400 companies for Moat Score. This places Vertex Pharmaceuticals in the top 0% of its industry — outperforming the majority of peers. The industry median Moat Score is 2.00. Vertex Pharmaceuticals' value of 8 is 300% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Biotechnology company?
The median Moat Score among Biotechnology companies is 2.00, based on 1,400 companies in the industry. Companies in the top quartile (top 25%) have a Moat Score significantly above this median, while those in the bottom quartile fall well below. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Vertex Pharmaceuticals's current Moat Score of 8 is 300% 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 Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. For the Biotechnology industry, the median Moat Score is 2.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vertex Pharmaceuticals's current Moat Score is 8. 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 (WBO:VRTX) is currently considered Fairly Valued. The stock's GF Value™ is €440.30, compared to a current price of €435.40 — trading 1.1% below its estimated fair value. The current Moat Score is 8 and 300% above the Biotechnology industry median of 2.00. Vertex Pharmaceuticals' overall GF Score™ is 91/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Vertex Pharmaceuticals (WBO:VRTX), the current Moat Score is 8 as of Jul. 01, 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 (WBO:VRTX) Overvalued in 2026?

Based on GuruFocus' analysis, Vertex Pharmaceuticals stock appears to be undervalued. The current stock price of €435.40 is trading 1.1% below its estimated GF Value™ of €440.30. GuruFocus considers Vertex Pharmaceuticals to be Fairly Valued.

Key valuation signals for WBO:VRTX:

  • Moat Score: 8
  • GF Value™: €440.30 vs. price of €435.40 (1.1% below fair value)
  • GF Score™: 91/100 with 4 warning signs
  • Industry Position: 300% above the Biotechnology median (#1 of 1400)

No single metric tells the full story. See the WBO:VRTX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Vertex Pharmaceuticals Business Description

Address 50 Northern Avenue, Boston, MA, USA, 02210
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.
91GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€435.40
Price
€440.30
GF Value