Market Pulse44Neutral

Vertex Pharmaceuticals IncorporatedOpportunity Rank #162(VRTX) Intrinsic Value & DCF Analysis (2026)

Sector: Healthcare

Current Price

$466.79

Last updated: Jun 23, 2026

Price vs Intrinsic Value

$466.79
Price
$476.87
Intrinsic Value
Undervalued by 2%MOS: $381.50

Fundamental Score

57/100
Neutral

Weighted across 6 signals

Narrative Score

55/100
Improving

No change vs previous

Trend Score

53/100
Neutral

As of 2026-06-22

The intrinsic value of Vertex Pharmaceuticals Incorporated (VRTX) is estimated at $476.87 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $466.79, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes an 8.12% long-term growth rate and an 8.50% discount rate (calculated: 7.74%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Vertex Pharmaceuticals Incorporated (VRTX) is estimated at $476.87 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $466.79, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes an 8.12% long-term growth rate and an 8.50% discount rate (calculated: 7.74%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$476.87
2.16% upside
20% margin of safety: $381.50
Years: 10Growth Rate: 8.12%
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Capital Efficiency

Average Quarterly ROIC
9.12%
Cost of Capital (estimated)8%
Value StatusCreating Value

The company is earning a higher return on invested capital than it costs to raise that capital — a sign of strong, efficient value creation.

Complete historical ROIC is available with
.

Fundamental Details

57/100
NeutralWeighted across 6 signals
DCF Discount
2.2% discount to price
54
FCF Yield
4.0% trailing FCF yield
51
ROIC vs WACC
ROIC 9.1% vs WACC 8.0% (1.1x)
57
Net Debt / FCF
Net cash position
100
Buybacks
Share count growing
30
FCF CAGR (5Y)
6.3% 5Y FCF CAGR
57
Strengths: Net Debt / FCF. Concerns: Buybacks.

Narrative Details

55/100
Improving
Vs 6-Month Baseline:Below Avg (35th pct)Weighted across 5 recent drivers
Trend: StableConfidence: 85%Updated: 3h ago
Sources: 50 (43 News · 7 Analyst)
Drivers(last 30 days)
34 news sentiment+0.3
5 regulatory scrutiny+0.1
Legal risk+0.0
3 earnings beat+0.0
7 analyst reiterations0.0

Trend Details

53/100
NeutralAs of 2026-06-22308 daily bars used
3M Relative Strength vs SPY-12.0%
Distance from 52-Week High-6.5%
Price vs 21 EMA+4.6%
Price vs 21 EMA76 · +4.6%
Price vs 50 EMA73 · +5.2%
21 EMA vs 50 EMA54 · +0.5%
3M RS vs SPY12 · -12.0%
6M RS vs SPY31 · -7.0%
Distance from 52W High87 · -6.5%

Investment Coach

Updating... 12d ago
BUYConfidence: 54%
Thesis
Vertex Pharmaceuticals presents a compelling buy opportunity with a 15.6% valuation upside supported by constructive fundamentals and a strong net cash position. The company's return on invested capital exceeds its weighted average cost of capital, indicating efficient capital use.
Key Risk
A sustained decline in valuation discount or deterioration in ROIC versus WACC spread could undermine the investment thesis.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC vs WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 8.12%5 Year CAGR: 10.63%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$4,771$4,069-$195$3,796$4,335$2,879$3,513$1,645$1,366$1,104$293-$320-$4620$$339$238-$597-$404-$194-$220$10

How Intrinziq Estimates Fair Value

Intrinziq estimates Vertex Pharmaceuticals Incorporated's intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Vertex Pharmaceuticals IncorporatedHealthcare

Vertex Pharmaceuticals Incorporated is a leading biotechnology firm primarily focused on the discovery, advancement, and marketing of innovative treatments, particularly for cystic fibrosis (CF). The company offers a range of approved medications for CF patients, including SYMDEKO/SYMKEVI, ORKAMBI, and KALYDECO, which target specific mutations within the cystic fibrosis transmembrane conductance regulator gene. Additionally, they provide TRIKAFTA for individuals with CF aged six years and older who possess at least one F508del mutation. Beyond its established CF therapies, Vertex maintains a robust and diverse clinical pipeline. This includes VX-864, currently in Phase 2 for alpha-1 antitrypsin (AAT) deficiency; VX-147, also in Phase 2, addressing APOL1-mediated focal segmental glomerulosclerosis (FSGS) and other serious kidney conditions; VX-880, a potential treatment for Type 1 Diabetes undergoing Phase 1/2 trials; VX-548, a NaV1.8 inhibitor in Phase 2 for various forms of acute, neuropathic, and musculoskeletal pain; and CTX001, which is in Phase 3 development for severe sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT). The company distributes its pharmaceutical products through specialty pharmacies and distributors across the United States, while international sales are facilitated via a network of specialty distributors, retail chains, hospitals, and clinics. Vertex also engages in numerous strategic collaborations with partners such as Affinia Therapeutics, Arbor Biotechnologies, CRISPR Therapeutics, Kymera Therapeutics, Mammoth Biosciences, Moderna, Obsidian Therapeutics, Skyhawk Therapeutics, Ribometrix, Genomics plc, Merck KGaA, and X-Chem. Established in 1989, Vertex Pharmaceuticals is headquartered in Boston, Massachusetts.

Vertex Pharmaceuticals Incorporated (VRTX) Intrinsic Value & DCF (2026) | Intrinziq