PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Vertex Pharmaceuticals's PE Ratio without NRI is 24.72. Vertex Pharmaceuticals's 5-Year EBITDA growth rate is 41.40%. Therefore, Vertex Pharmaceuticals's PEG Ratio for today is 0.60.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Vertex Pharmaceuticals's PEG Ratio or its related term are showing as below:
VRTX'
s PEG Ratio Range Over the Past 10 Years
Min: 0.14 Med: 0.23 Max: 0.64
Current: 0.6
During the past 13 years, Vertex Pharmaceuticals's highest PEG Ratio was 0.64. The lowest was 0.14. And the median was 0.23.
VRTX's PEG Ratio is ranked better than 75.68% of 111
companies
in the Biotechnology industry
Industry Median: 1.54
vs VRTX: 0.60
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Vertex Pharmaceuticals PEG Ratio Historical Data
The historical data trend for Vertex Pharmaceuticals's PEG 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.
Competitive Comparison of Vertex Pharmaceuticals's PEG Ratio
For the Biotechnology subindustry, Vertex Pharmaceuticals's PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Vertex Pharmaceuticals's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Vertex Pharmaceuticals's PEG Ratio falls into.
Vertex Pharmaceuticals PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year EBITDA growth rate.
Vertex Pharmaceuticals's PEG Ratio for today is calculated as
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Vertex Pharmaceuticals (NAS:VRTX) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Vertex Pharmaceuticals PEG Ratio Related Terms
Thank you for viewing the detailed overview of Vertex Pharmaceuticals's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Vertex Pharmaceuticals (Vertex Pharmaceuticals) Business Description
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.
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