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Vertex Pharmaceuticals (Vertex Pharmaceuticals) Shiller PE Ratio : 67.83 (As of Apr. 27, 2024)


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What is Vertex Pharmaceuticals Shiller PE Ratio?

As of today (2024-04-27), Vertex Pharmaceuticals's current share price is $397.48. Vertex Pharmaceuticals's E10 for the quarter that ended in Dec. 2023 was $5.86. Vertex Pharmaceuticals's Shiller PE Ratio for today is 67.83.

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: 63.32   Med: 90.41   Max: 8209.67
Current: 67.83

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.

VRTX's Shiller PE Ratio is ranked worse than
76.03% of 146 companies
in the Biotechnology industry
Industry Median: 34.31 vs VRTX: 67.83

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 $3.710. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $5.86 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
=397.48/5.86
=67.83

* 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)
=3.71/129.4194*129.4194
=3.710

Current CPI (Dec. 2023) = 129.4194.

Vertex Pharmaceuticals Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201403 -1.000 99.695 -1.298
201406 -0.680 100.560 -0.875
201409 -0.720 100.428 -0.928
201412 -0.740 99.070 -0.967
201503 -0.830 99.621 -1.078
201506 -0.780 100.684 -1.003
201509 -0.390 100.392 -0.503
201512 -0.310 99.792 -0.402
201603 -0.170 100.470 -0.219
201606 -0.260 101.688 -0.331
201609 -0.160 101.861 -0.203
201612 0.130 101.863 0.165
201703 0.990 102.862 1.246
201706 0.070 103.349 0.088
201709 -0.410 104.136 -0.510
201712 0.390 104.011 0.485
201803 0.810 105.290 0.996
201806 0.800 106.317 0.974
201809 0.500 106.507 0.608
201812 5.970 105.998 7.289
201903 1.030 107.251 1.243
201906 1.030 108.070 1.233
201909 0.220 108.329 0.263
201912 2.230 108.420 2.662
202003 2.290 108.902 2.721
202006 3.180 108.767 3.784
202009 2.530 109.815 2.982
202012 2.300 109.897 2.709
202103 2.490 111.754 2.884
202106 0.260 114.631 0.294
202109 3.280 115.734 3.668
202112 3.000 117.630 3.301
202203 2.960 121.301 3.158
202206 3.130 125.017 3.240
202209 3.590 125.227 3.710
202212 3.150 125.222 3.256
202303 2.690 127.348 2.734
202306 3.520 128.729 3.539
202309 3.970 129.860 3.957
202312 3.710 129.419 3.710

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  (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

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


Vertex Pharmaceuticals (Vertex Pharmaceuticals) 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.
Executives
Jeffrey M Leiden director 15 N BEACH ROAD, HOBE SOUND FL 33455
Wagner Charles F Jr officer: EVP & Chief Financial Officer C/O MILLIPORE CORP, BILLERICA MA 01820
Reshma Kewalramani director, officer: CEO & President C/O VERTEX PHARMACEUTICALS, INC., 50 NORTHERN AVENUE, BOSTON MA 02210
Stuart A Arbuckle officer: EVP, COO VERTEX PHARMACEUTICALS INCORPORATED, 130 WAVERLY ST., CAMBRIDGE MA 02139
Amit Sachdev officer: SVP, Public Policy,Gov Affairs C/O VERTEX PHARMACEUTICALS INCORPORATED, 130 WAVERLY STREET, CAMBRIDGE MA 02139
David Altshuler officer: EVP, Global Research and CSO C/O VERTEX PHARMACEUTICALS INCORPORATED, 130 WAVERLY STREET, CAMBRIDGE MA 02139
Carmen Bozic officer: EVP and CMO C/O VERTEX PHARMACEUTICALS, INC., 50 NORTHERN AVENUE, BOSTON MA 02210
Bruce I Sachs director C/O VERTEX PHARMACEUTICALS, INC., 50 NORTHERN AVENUE, BOSTON MA 02210
Sangeeta N. Bhatia director C/O VERTEX PHARMACEUTICALS, INC., 50 NORTHERN AVENUE, BOSTON MA 02210
Michel Lagarde director 450 LEXINGTON AVE., 31ST FLOOR, NEW YORK NY 10017
Atkinson Edward Morrow Iii officer: EVP, Chief Technical Ops. Off. C/O 89BIO, INC., 142 SANSOME STREET, SECOND FLOOR, SAN FRANCISCO CA 94104
Ourania Tatsis officer: EVP, Chief Reg. & Quality Off. C/O VERTEX PHARMACEUTICALS, INC., 50 NORTHERN AVENUE, BOSTON MA 02210
Terrence C Kearney director IN CARE OF HOSPIRA, INC., 275 NORTH FIELD DRIVE, LAKE FOREST IL 60045
Kristen Ambrose officer: SVP & Chief Accounting Officer C/O VERTEX PHARMACEUTICALS INCORPORATED, 50 NORTHERN AVENUE, BOSTON MA 02210
Bastiano Sanna officer: EVP, Cell & Genetic Therapies C/O VERTEX PHARMACEUTICALS INCORPORATED, 50 NORTHERN AVENUE, BOSTON MA 02210