Vertex Pharmaceuticals (Vertex Pharmaceuticals) GF Value Rank

: 5 (As of Today)

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Vertex Pharmaceuticals has the GF Value Rank of 5.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison

For the Biotechnology subindustry, Vertex Pharmaceuticals's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution

For the Biotechnology industry and Healthcare sector, Vertex Pharmaceuticals's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Vertex Pharmaceuticals's GF Value Rank falls into.

Vertex Pharmaceuticals GF Value Rank Related Terms

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Vertex Pharmaceuticals (Vertex Pharmaceuticals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Vertex Pharmaceuticals Inc (NAS:VRTX) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

VRTX:Mexico 1VRTX:Italy VX1d:UK VX1:Germany VX1:Germany VX1:Germany VX1:Germany VRTX34:Brazil VRTX:Austria

Address

50 Northern Avenue, Boston, MA, USA, 02210

Website

https://www.vrtx.com

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