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Vertex Pharmaceuticals (BSP:VRTX34) Shiller PE Ratio : 71.36 (As of Apr. 29, 2024)


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What is Vertex Pharmaceuticals Shiller PE Ratio?

As of today (2024-04-29), Vertex Pharmaceuticals's current share price is R$509.49. Vertex Pharmaceuticals's E10 for the quarter that ended in Dec. 2023 was R$7.14. Vertex Pharmaceuticals's Shiller PE Ratio for today is 71.36.

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

BSP:VRTX34' s Shiller PE Ratio Range Over the Past 10 Years
Min: 63.32   Med: 90.41   Max: 8209.67
Current: 67.85

During the past years, Vertex Pharmaceuticals's highest Shiller PE Ratio was 8209.67. The lowest was 63.32. And the median was 90.41.

BSP:VRTX34's Shiller PE Ratio is ranked worse than
76.19% of 147 companies
in the Biotechnology industry
Industry Median: 34.81 vs BSP:VRTX34: 67.85

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 Dec. 2023 was R$4.545. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is R$7.14 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Vertex Pharmaceuticals Shiller PE Ratio Historical Data

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.

* Premium members only.

Vertex Pharmaceuticals Shiller PE Ratio Chart

Vertex Pharmaceuticals Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7,147.96 155.85 86.51 71.14 69.46

Vertex Pharmaceuticals Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Shiller PE Ratio Get a 7-Day Free Trial 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 71.14 68.75 70.12 62.87 69.46

Competitive Comparison of Vertex Pharmaceuticals's Shiller PE Ratio

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's Shiller PE Ratio Distribution in the 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.

Vertex Pharmaceuticals's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=509.49/7.14
=71.36

* 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's E10 for the quarter that ended in Dec. 2023 is calculated as:

For example, Vertex Pharmaceuticals's adjusted earnings per share data for the three months ended in Dec. 2023 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=4.545/129.4194*129.4194
=4.545

Current CPI (Dec. 2023) = 129.4194.

Vertex Pharmaceuticals Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201403 -0.581 99.695 -0.754
201406 -0.380 100.560 -0.489
201409 -0.421 100.428 -0.543
201412 -0.489 99.070 -0.639
201503 -0.652 99.621 -0.847
201506 -0.607 100.684 -0.780
201509 -0.381 100.392 -0.491
201512 -0.301 99.792 -0.390
201603 -0.157 100.470 -0.202
201606 -0.223 101.688 -0.284
201609 -0.130 101.861 -0.165
201612 0.109 101.863 0.138
201703 0.774 102.862 0.974
201706 0.058 103.349 0.073
201709 -0.321 104.136 -0.399
201712 0.321 104.011 0.399
201803 0.664 105.290 0.816
201806 0.754 106.317 0.918
201809 0.514 106.507 0.625
201812 5.796 105.998 7.077
201903 0.989 107.251 1.193
201906 0.993 108.070 1.189
201909 0.227 108.329 0.271
201912 2.288 108.420 2.731
202003 2.797 108.902 3.324
202006 4.125 108.767 4.908
202009 3.415 109.815 4.025
202012 2.958 109.897 3.483
202103 3.508 111.754 4.063
202106 0.327 114.631 0.369
202109 4.329 115.734 4.841
202112 4.241 117.630 4.666
202203 3.683 121.301 3.929
202206 3.950 125.017 4.089
202209 4.706 125.227 4.864
202212 4.131 125.222 4.269
202303 3.503 127.348 3.560
202306 4.271 128.729 4.294
202309 4.902 129.860 4.885
202312 4.545 129.419 4.545

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  (BSP:VRTX34) 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

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Vertex Pharmaceuticals (BSP:VRTX34) Business Description

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. 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 nonopioid 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.

Vertex Pharmaceuticals (BSP:VRTX34) Headlines

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