GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Vertex Pharmaceuticals Inc (BSP:VRTX34) » Definitions » PEG Ratio
中文

Vertex Pharmaceuticals (BSP:VRTX34) PEG Ratio : 0.64 (As of Apr. 24, 2024)


View and export this data going back to 2019. Start your Free Trial

What is Vertex Pharmaceuticals PEG Ratio?

PE Ratio without NRI / 5-Year EBITDA Growth Rate*

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Vertex Pharmaceuticals's PE Ratio without NRI is 26.37. Vertex Pharmaceuticals's 5-Year EBITDA growth rate is 41.40%. Therefore, Vertex Pharmaceuticals's PEG Ratio for today is 0.64.

* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


The historical rank and industry rank for Vertex Pharmaceuticals's PEG Ratio or its related term are showing as below:

BSP:VRTX34' s PEG Ratio Range Over the Past 10 Years
Min: 0.14   Med: 0.23   Max: 0.64
Current: 0.61


During the past 13 years, Vertex Pharmaceuticals's highest PEG Ratio was 0.64. The lowest was 0.14. And the median was 0.23.


BSP:VRTX34's PEG Ratio is ranked better than
77.27% of 110 companies
in the Biotechnology industry
Industry Median: 1.435 vs BSP:VRTX34: 0.61

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.


Vertex Pharmaceuticals PEG Ratio Historical Data

The historical data trend for Vertex Pharmaceuticals's PEG 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.

* Premium members only.

Vertex Pharmaceuticals PEG Ratio Chart

Vertex Pharmaceuticals Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PEG Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - 0.14 0.23 0.62

Vertex Pharmaceuticals Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
PEG Ratio Get a 7-Day Free Trial 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 0.23 0.27 0.40 0.49 0.62

Competitive Comparison of Vertex Pharmaceuticals's PEG Ratio

For the Biotechnology subindustry, Vertex Pharmaceuticals's PEG Ratio, along with its competitors' market caps and PEG 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's PEG Ratio Distribution in the Biotechnology Industry

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

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



Vertex Pharmaceuticals PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

Vertex Pharmaceuticals's PEG Ratio for today is calculated as

PEG Ratio=PE Ratio without NRI/5-Year EBITDA Growth Rate*
=26.368421052632/41.40
=0.64

* 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.

* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


Vertex Pharmaceuticals  (BSP:VRTX34) PEG Ratio Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Vertex Pharmaceuticals PEG Ratio Related Terms

Thank you for viewing the detailed overview of Vertex Pharmaceuticals's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Vertex Pharmaceuticals (BSP:VRTX34) 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 for cystic fibrosis, where Vertex therapies remain the standard of care globally. Vertex is diversifying its pipeline through gene-editing therapies such as CTX001 for beta thalassemia and sickle-cell disease, small-molecule inhibitors targeting acute and chronic pain using nonopioid treatments, and small-molecule inhibitors of APOL1-mediated kidney diseases. Vertex is also investigating cell therapies to deliver a potential functional cure for type 1 diabetes.

Vertex Pharmaceuticals (BSP:VRTX34) Headlines

No Headlines