Vertex PharmaceuticalsWBO:VRTX +0.52%91 Pretax Margin % is 41.95% as of Mar. 2026, which is 21% above its 10-year median of 34.78. 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 943 Biotechnology companies, Vertex Pharmaceuticals ranks better than 93.43% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Vertex Pharmaceuticals Pretax Margin % Related Terms
Vertex Pharmaceuticals Pretax Margin % Historical Data
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The historical data trend for Vertex Pharmaceuticals's Pretax Margin % 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.
WBO:VRTX vs REGN, ALNY, RVMD: Pretax Margin % Comparison
For the Biotechnology subindustry, Vertex Pharmaceuticals's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Vertex Pharmaceuticals's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Vertex Pharmaceuticals's Pretax Margin % falls into.
* 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 (WBO:VRTX) has a Pretax Margin % of 41.95% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Vertex Pharmaceuticals and its competitors. This is 21% above median its historical median of 34.78. According to the industry distribution chart, Vertex Pharmaceuticals ranks #62 out of 943 companies in the Biotechnology industry, placing it in the top 6.6%.
Is Vertex Pharmaceuticals' Pretax Margin % too high?
Vertex Pharmaceuticals' current Pretax Margin % of 41.95% is 21% above median its 10-year median of 34.78. Based on the distribution chart, Vertex Pharmaceuticals ranks #62 out of 943 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' Pretax Margin % compare to REGN and ALNY?
According to the Biotechnology industry distribution chart, Vertex Pharmaceuticals ranks #62 out of 943 companies for Pretax Margin %. This places Vertex Pharmaceuticals in the top 7% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Biotechnology company?
A good Pretax Margin % depends on the Biotechnology industry context. However, Pretax Margin % 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Vertex Pharmaceuticals and its competitors. Vertex Pharmaceuticals's current Pretax Margin % is 41.95%, which is 21% above median its own 10-year median of 34.78. 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 Pretax Margin % is 41.95%, which is 21% above median its 10-year median of 34.78. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Vertex Pharmaceuticals (WBO:VRTX), the current Pretax Margin % is 41.95% as of Mar. 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:
Pretax Margin %: 41.95% (21% above median its 10-year median of 34.78)
GF Value™: €440.30 vs. price of €435.40 (1.1% below fair value)
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 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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