Vertex PharmaceuticalsBSP:VRTX34 87 Altman Z-Score is 12.20 as of Jul. 01, 2026, which is 8% below its 10-year median of 13.31. GuruFocus rates BSP:VRTX34 with a GF Score™ of 87/100 and a GF Value™ of R$614.03 (Fairly Valued). The stock has 4 warning signs investors should review. Among 929 Biotechnology companies, Vertex Pharmaceuticals ranks better than 81.38% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 12.85 is strong.
Vertex Pharmaceuticals has a Altman Z-Score of 12.20, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Vertex Pharmaceuticals's Altman Z-Score or its related term are showing as below:
BSP:VRTX34'
s Altman Z-Score Range Over the Past 10 Years
Min: 5.48 Med: 13.31 Max: 18.59
Current: 12.85
During the past 13 years, Vertex Pharmaceuticals's highest Altman Z-Score was 18.59. The lowest was 5.48. And the median was 13.31.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Vertex Pharmaceuticals Altman Z-Score Related Terms
Vertex Pharmaceuticals Altman Z-Score Historical Data
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The historical data trend for Vertex Pharmaceuticals's Altman Z-Score 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: Altman Z-Score Comparison
For the Biotechnology subindustry, Vertex Pharmaceuticals's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Vertex Pharmaceuticals's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Vertex Pharmaceuticals's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Vertex Pharmaceuticals (BSP:VRTX34) has a Altman Z-Score of 12.20 as of Jul. 01, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Vertex Pharmaceuticals and its competitors. This is near median its historical median of 13.31. Over the past decade, Vertex Pharmaceuticals' Altman Z-Score has ranged from 5.48 to 18.59. According to the industry distribution chart, Vertex Pharmaceuticals ranks #173 out of 929 companies in the Biotechnology industry, placing it in the top 18.6%.
Is Vertex Pharmaceuticals' Altman Z-Score too high?
Vertex Pharmaceuticals' current Altman Z-Score of 12.20 is near median its 10-year median of 13.31. Over the past 10 years, this metric has ranged from a low of 5.48 to a high of 18.59. The Biotechnology industry median Altman Z-Score is 2.60. Vertex Pharmaceuticals' value of 12.20 is 369.2% above this industry median. Based on the distribution chart, Vertex Pharmaceuticals ranks #173 out of 929 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 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Vertex Pharmaceuticals' Altman Z-Score compare to REGN and ALNY?
According to the Biotechnology industry distribution chart, Vertex Pharmaceuticals ranks #173 out of 929 companies for Altman Z-Score. This places Vertex Pharmaceuticals in the top 19% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 2.60. Vertex Pharmaceuticals' value of 12.20 is 369.2% above this benchmark. Historically, Vertex Pharmaceuticals' own Altman Z-Score has ranged from 5.48 to 18.59 over the past decade. While the company's 10-year median is 13.31 vs. the industry median of 2.60, 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 Altman Z-Score for a Biotechnology company?
The median Altman Z-Score among Biotechnology companies is 2.60, based on 929 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Vertex Pharmaceuticals's current Altman Z-Score of 12.20 is 369.2% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Vertex Pharmaceuticals and its competitors. For the Biotechnology industry, the median Altman Z-Score is 2.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vertex Pharmaceuticals's current Altman Z-Score is 12.20, which is near median its own 10-year median of 13.31. 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$614.03, compared to a current price of R$607.20 — trading 1.1% below its estimated fair value. The current Altman Z-Score is 12.20, which is near median its 10-year median of 13.31 and 369.2% above the Biotechnology industry median of 2.60. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Vertex Pharmaceuticals (BSP:VRTX34), the current Altman Z-Score is 12.20 as of Jul. 01, 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$607.20 is trading 1.1% below its estimated GF Value™ of R$614.03.
GuruFocus considers Vertex Pharmaceuticals to be Fairly Valued.
Key valuation signals for BSP:VRTX34:
Altman Z-Score: 12.20 (near median its 10-year median of 13.31)
GF Value™: R$614.03 vs. price of R$607.20 (1.1% below fair value)
Industry Position: 369.2% above the Biotechnology median (#173 of 929)
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.
87GF Score
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