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Vertex PharmaceuticalsVRTX +0.11%87 Shiller PE Ratio is 54.86 as of Sep. 11, 2026, which is 31% below its 10-year median of 79.23. GuruFocus rates VRTX with a GF Score™ of 87/100 and a GF Value™ of $523.48 (Fairly Valued). The stock has 4 warning signs investors should review. Among 170 Biotechnology companies, Vertex Pharmaceuticals ranks worse than 67.65% on this metric.
The historical rank and industry rank for Vertex Pharmaceuticals's Shiller PE Ratio or its related term are showing as below:
VRTX'
s Shiller PE Ratio Range Over the Past 10 Years
Min: 48.01 Med: 79.23 Max: 8209.67
Current: 54.86
During the past years, Vertex Pharmaceuticals's highest Shiller PE Ratio was 8209.67. The lowest was 48.01. And the median was 79.23.
VRTX's Shiller PE Ratio is ranked worse than 67.65% of 170
companies
in the Biotechnology industry
Industry Median: 31.515
vs VRTX: 54.86
E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.
Vertex Pharmaceuticals's adjusted earnings per share data for the three months ended in Jun. 2026 was $4.310. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $9.39 for the trailing ten years ended in Jun. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Vertex Pharmaceuticals (NAS:VRTX) Shiller PE Ratio Explanation
Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.
Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.
Be Aware
Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.
Vertex Pharmaceuticals Shiller PE Ratio Related Terms
Vertex Pharmaceuticals Shiller PE Ratio Historical Data
* Premium members only.
The historical data trend for Vertex Pharmaceuticals's Shiller PE 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.
VRTX vs REGN, MRNA, RVMD: Shiller PE Ratio Comparison
For the Biotechnology subindustry, Vertex Pharmaceuticals's Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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 Shiller PE Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Vertex Pharmaceuticals's Shiller PE Ratio distribution charts can be found below:
* The bar in red indicates where Vertex Pharmaceuticals's Shiller PE Ratio falls into.
Vertex Pharmaceuticals Shiller PE Ratio Calculation
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.
* 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.
Add all the adjusted EPS together and divide 10 will get our E10.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
Vertex Pharmaceuticals (VRTX) has a Shiller PE Ratio of 54.86 as of Sep. 11, 2026. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Vertex Pharmaceuticals and its competitors. This is 31% below median its historical median of 79.23. Over the past decade, Vertex Pharmaceuticals' Shiller PE Ratio has ranged from 48.01 to 8,209.67. According to the industry distribution chart, Vertex Pharmaceuticals ranks #115 out of 170 companies in the Biotechnology industry, placing it in the top 67.6%.
Is Vertex Pharmaceuticals' Shiller PE Ratio too high?
Vertex Pharmaceuticals' current Shiller PE Ratio of 54.86 is 31% below median its 10-year median of 79.23. Over the past 10 years, this metric has ranged from a low of 48.01 to a high of 8,209.67. The Biotechnology industry median Shiller PE Ratio is 31.52. Vertex Pharmaceuticals' value of 54.86 is 74.1% above this industry median. Based on the distribution chart, Vertex Pharmaceuticals ranks #115 out of 170 companies in the Biotechnology industry, which is below the industry midpoint. Overall, Vertex Pharmaceuticals has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Vertex Pharmaceuticals' Shiller PE Ratio compare to REGN and MRNA?
According to the Biotechnology industry distribution chart, Vertex Pharmaceuticals ranks #115 out of 170 companies for Shiller PE Ratio. This places Vertex Pharmaceuticals in the lower half of its industry. The industry median Shiller PE Ratio is 31.52. Vertex Pharmaceuticals' value of 54.86 is 74.1% above this benchmark. Historically, Vertex Pharmaceuticals' own Shiller PE Ratio has ranged from 48.01 to 8,209.67 over the past decade. While the company's 10-year median is 79.23 vs. the industry median of 31.52, Vertex Pharmaceuticals has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Shiller PE Ratio for a Biotechnology company?
The median Shiller PE Ratio among Biotechnology companies is 31.52, based on 170 companies in the industry. Companies in the top quartile (top 25%) have a Shiller PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Shiller PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Vertex Pharmaceuticals's current Shiller PE Ratio of 54.86 is 74.1% 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 Shiller PE Ratio mean?
A high Shiller PE Ratio can signal that a stock is expensive relative to its fundamentals. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Vertex Pharmaceuticals and its competitors. For the Biotechnology industry, the median Shiller PE Ratio is 31.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vertex Pharmaceuticals's current Shiller PE Ratio is 54.86, which is 31% below median its own 10-year median of 79.23. 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 (VRTX) is currently considered Fairly Valued. The stock's GF Value™ is $523.48, compared to a current price of $515.11 — trading 1.6% below its estimated fair value. The current Shiller PE Ratio is 54.86, which is 31% below median its 10-year median of 79.23 and 74.1% above the Biotechnology industry median of 31.52. Vertex Pharmaceuticals' overall GF Score™ is 87/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Shiller PE Ratio calculated?
Shiller PE Ratio is calculated from a company's financial statements. For Vertex Pharmaceuticals (VRTX), the current Shiller PE Ratio is 54.86 as of Sep. 11, 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 (VRTX) Overvalued in 2026?
Based on GuruFocus' analysis, Vertex Pharmaceuticals stock appears to be undervalued.
The current stock price of $515.11 is trading 1.6% below its estimated GF Value™ of $523.48.
GuruFocus considers Vertex Pharmaceuticals to be Fairly Valued.
Key valuation signals for VRTX:
Shiller PE Ratio: 54.86 (31% below median its 10-year median of 79.23)
GF Value™: $523.48 vs. price of $515.11 (1.6% below fair value)
Industry Position: 74.1% above the Biotechnology median (#115 of 170)
No single metric tells the full story. See the 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.
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