Vertex PharmaceuticalsBSP:VRTX34 -0.61%86 ROC (Joel Greenblatt) % is 114.50% as of Mar. 2026, which is 29% below its 10-year median of 160.20. GuruFocus rates BSP:VRTX34 with a GF Score™ of 86/100 and a GF Value™ of R$646.37 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,320 Biotechnology companies, Vertex Pharmaceuticals ranks better than 95.83% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Vertex Pharmaceuticals's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 114.50%.
The historical rank and industry rank for Vertex Pharmaceuticals's ROC (Joel Greenblatt) % or its related term are showing as below:
BSP:VRTX34'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 2.02 Med: 160.2 Max: 304.18
Current: 157.07
During the past 13 years, Vertex Pharmaceuticals's highest ROC (Joel Greenblatt) % was 304.18%. The lowest was 2.02%. And the median was 160.20%.
BSP:VRTX34's ROC (Joel Greenblatt) % is ranked better than 95.83% of 1320
companies
in the Biotechnology industry
Industry Median: -294.23
vs BSP:VRTX34: 157.07
Vertex Pharmaceuticals's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -28.60% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Vertex Pharmaceuticals ROC (Joel Greenblatt) % Related Terms
Vertex Pharmaceuticals ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Vertex Pharmaceuticals's ROC (Joel Greenblatt) % 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.
BSP:VRTX34 vs REGN, ALNY, RVMD: ROC (Joel Greenblatt) % Comparison
For the Biotechnology subindustry, Vertex Pharmaceuticals's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Vertex Pharmaceuticals's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Vertex Pharmaceuticals's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 114.50% mean?
Vertex Pharmaceuticals (BSP:VRTX34) has a ROC (Joel Greenblatt) % of 114.50% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Vertex Pharmaceuticals and its competitors. This is 29% below median its historical median of 160.20. Over the past decade, Vertex Pharmaceuticals' ROC (Joel Greenblatt) % has ranged from 2.02 to 304.18. According to the industry distribution chart, Vertex Pharmaceuticals ranks #55 out of 1320 companies in the Biotechnology industry, placing it in the top 4.2%.
Is Vertex Pharmaceuticals' ROC (Joel Greenblatt) % too high?
Vertex Pharmaceuticals' current ROC (Joel Greenblatt) % of 114.50% is 29% below median its 10-year median of 160.20. Over the past 10 years, this metric has ranged from a low of 2.02 to a high of 304.18. Based on the distribution chart, Vertex Pharmaceuticals ranks #55 out of 1320 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 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Vertex Pharmaceuticals' ROC (Joel Greenblatt) % compare to REGN and ALNY?
According to the Biotechnology industry distribution chart, Vertex Pharmaceuticals ranks #55 out of 1320 companies for ROC (Joel Greenblatt) %. This places Vertex Pharmaceuticals in the top 4% of its industry — outperforming the majority of peers. Historically, Vertex Pharmaceuticals' own ROC (Joel Greenblatt) % has ranged from 2.02 to 304.18 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC (Joel Greenblatt) % for a Biotechnology company?
A good ROC (Joel Greenblatt) % depends on the Biotechnology industry context. However, ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Vertex Pharmaceuticals and its competitors. Vertex Pharmaceuticals's current ROC (Joel Greenblatt) % is 114.50%, which is 29% below median its own 10-year median of 160.20. 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$646.37, compared to a current price of R$621.43 — trading 3.9% below its estimated fair value. The current ROC (Joel Greenblatt) % is 114.50%, which is 29% below median its 10-year median of 160.20. Vertex Pharmaceuticals' overall GF Score™ is 86/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Vertex Pharmaceuticals (BSP:VRTX34), the current ROC (Joel Greenblatt) % is 114.50% 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 (BSP:VRTX34) Overvalued in 2026?
Based on GuruFocus' analysis, Vertex Pharmaceuticals stock appears to be undervalued.
The current stock price of R$621.43 is trading 3.9% below its estimated GF Value™ of R$646.37.
GuruFocus considers Vertex Pharmaceuticals to be Fairly Valued.
Key valuation signals for BSP:VRTX34:
ROC (Joel Greenblatt) %: 114.50% (29% below median its 10-year median of 160.20)
GF Value™: R$646.37 vs. price of R$621.43 (3.9% below fair value)
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.
86GF Score
Get the complete analysis for BSP:VRTX34
ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BSP:VRTX34 has been successfully added to your 
