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Vertex Pharmaceuticals PS Ratio

: 9.24 (As of Today)
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The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Vertex Pharmaceuticals's share price is $298.78. Vertex Pharmaceuticals's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2022 was $32.33. Hence, Vertex Pharmaceuticals's PS Ratio for today is 9.24.

Warning Sign:

Vertex Pharmaceuticals Inc stock PS Ratio (=9.09) is close to 1-year high of 9.38

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

VRTX' s PS Ratio Range Over the Past 10 Years
Min: 4.47   Med: 13.75   Max: 52.57
Current: 9.09

During the past 13 years, Vertex Pharmaceuticals's highest PS Ratio was 52.57. The lowest was 4.47. And the median was 13.75.

VRTX's PS Ratio is ranked better than
55.89% of 1011 companies
in the Biotechnology industry
Industry Median: 12.14 vs VRTX: 9.09

Vertex Pharmaceuticals's Revenue per Sharefor the three months ended in Jun. 2022 was $8.49. Its Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2022 was $32.33.

During the past 12 months, the average Revenue per Share Growth Rate of Vertex Pharmaceuticals was 26.70% per year. During the past 3 years, the average Revenue per Share Growth Rate was 35.30% per year. During the past 5 years, the average Revenue per Share Growth Rate was 33.40% per year. During the past 10 years, the average Revenue per Share Growth Rate was 19.20% per year.

During the past 13 years, Vertex Pharmaceuticals's highest 3-Year average Revenue per Share Growth Rate was 129.40% per year. The lowest was -32.50% per year. And the median was 25.80% per year.

Back to Basics: PS Ratio


Vertex Pharmaceuticals PS Ratio Historical Data

The historical data trend for Vertex Pharmaceuticals's PS 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 Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
PS Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.25 14.09 13.71 10.03 7.53

Vertex Pharmaceuticals Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
PS Ratio 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 Premium Member Only Premium Member Only Premium Member Only 7.91 6.64 7.53 8.50 8.72

Competitive Comparison

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

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

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



Vertex Pharmaceuticals PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

Vertex Pharmaceuticals's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=298.78/32.327
=9.24

Vertex Pharmaceuticals's Share Price of today is $298.78.
Vertex Pharmaceuticals's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $32.33.

* 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.

It can also be calculated from the numbers for the whole company:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Vertex Pharmaceuticals  (NAS:VRTX) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Vertex Pharmaceuticals PS Ratio Related Terms

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


Vertex Pharmaceuticals Business Description

Vertex Pharmaceuticals logo
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. In addition to its focus on cystic fibrosis, 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 non-opioid 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.
Executives
Upadhyay Suketu director 345 E. MAIN STREET WARSAW IN 46580
Garber Alan M director 3355 MILTON COURT MOUNTAIN VIEW CA 94040
Kearney Terrence C director IN CARE OF HOSPIRA, INC. 275 NORTH FIELD DRIVE LAKE FOREST IL 60045
Carney Lloyd director C/O MICROMUSE INC 139 TOWNSEND ST SAN FRANCISCO CA 94107
Mckenzie Diana director METLIFE 200 PARK AVENUE NEW YORK NY 10166
Bhatia Sangeeta N. director C/O VERTEX PHARMACEUTICALS, INC. 50 NORTHERN AVENUE BOSTON MA 02210
Lee Yuchun director 170 TRACER LA. WALTHAM MA 02451
Ambrose Kristen officer: SVP & Chief Accounting Officer C/O VERTEX PHARMACEUTICALS INCORPORATED 50 NORTHERN AVENUE BOSTON MA 02210
Mcglynn Margaret G director C/O MERCK & CO INC ONE MERCK DRIVE PO BOX 100 WHITEHOUSE STATION NJ 08889-0100
Liu Joy officer: SVP, General Counsel C/O VERTEX PHARMACEUTICALS INCORPORATED 50 NORTHERN AVENUE BOSTON MA 02210
Tatsis Ourania officer: EVP, Chief Reg. & Quality Off. C/O VERTEX PHARMACEUTICALS, INC. 50 NORTHERN AVENUE BOSTON MA 02210
Bozic Carmen officer: EVP and CMO C/O VERTEX PHARMACEUTICALS, INC. 50 NORTHERN AVENUE BOSTON MA 02210
Wagner Charles F Jr officer: EVP & Chief Financial Officer C/O MILLIPORE CORP BILLERICA MA 01820
Arbuckle Stuart A officer: EVP, COO VERTEX PHARMACEUTICALS INCORPORATED 130 WAVERLY ST. CAMBRIDGE MA 02139
Kewalramani Reshma director, officer: CEO & President C/O VERTEX PHARMACEUTICALS, INC. 50 NORTHERN AVENUE BOSTON MA 02210

Vertex Pharmaceuticals Headlines

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