Intrinsic value of Vertex Pharmaceuticals - VRTX

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$117.42

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$117.42

 
Intrinsic value

$33.10

 
Up/down potential

-72%

 
Rating

str. sell

 
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*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of VRTX stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 29.7

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  64.92
  9.80
  9.32
  8.89
  8.50
  8.15
  7.83
  7.55
  7.30
  7.07
  6.86
  6.67
  6.51
  6.36
  6.22
  6.10
  5.99
  5.89
  5.80
  5.72
  5.65
  5.58
  5.53
  5.47
  5.43
  5.38
  5.34
  5.31
  5.28
  5.25
  5.23
Revenue, $m
  1,702
  1,869
  2,043
  2,225
  2,414
  2,610
  2,815
  3,027
  3,248
  3,478
  3,716
  3,964
  4,222
  4,491
  4,770
  5,061
  5,364
  5,680
  6,009
  6,353
  6,712
  7,087
  7,478
  7,887
  8,315
  8,763
  9,231
  9,721
  10,235
  10,772
  11,335
Variable operating expenses, $m
 
  541
  591
  644
  698
  754
  813
  874
  937
  1,003
  1,072
  1,138
  1,212
  1,289
  1,369
  1,453
  1,540
  1,630
  1,725
  1,824
  1,927
  2,034
  2,147
  2,264
  2,387
  2,515
  2,650
  2,791
  2,938
  3,092
  3,254
Fixed operating expenses, $m
 
  1,260
  1,291
  1,323
  1,357
  1,391
  1,425
  1,461
  1,497
  1,535
  1,573
  1,613
  1,653
  1,694
  1,737
  1,780
  1,824
  1,870
  1,917
  1,965
  2,014
  2,064
  2,116
  2,169
  2,223
  2,278
  2,335
  2,394
  2,454
  2,515
  2,578
Total operating expenses, $m
  1,692
  1,801
  1,882
  1,967
  2,055
  2,145
  2,238
  2,335
  2,434
  2,538
  2,645
  2,751
  2,865
  2,983
  3,106
  3,233
  3,364
  3,500
  3,642
  3,789
  3,941
  4,098
  4,263
  4,433
  4,610
  4,793
  4,985
  5,185
  5,392
  5,607
  5,832
Operating income, $m
  10
  68
  160
  257
  359
  465
  577
  692
  813
  940
  1,071
  1,214
  1,357
  1,507
  1,664
  1,828
  2,000
  2,179
  2,367
  2,565
  2,771
  2,988
  3,216
  3,454
  3,705
  3,969
  4,246
  4,537
  4,843
  5,165
  5,503
EBITDA, $m
  71
  135
  233
  336
  444
  557
  675
  798
  926
  1,060
  1,200
  1,345
  1,498
  1,656
  1,823
  1,996
  2,178
  2,368
  2,567
  2,776
  2,994
  3,223
  3,464
  3,716
  3,982
  4,260
  4,552
  4,860
  5,183
  5,523
  5,880
Interest expense (income), $m
  84
  53
  55
  69
  83
  98
  113
  129
  146
  163
  181
  199
  219
  239
  260
  282
  304
  328
  353
  378
  405
  433
  463
  493
  525
  559
  594
  630
  668
  708
  750
Earnings before tax, $m
  -67
  15
  105
  189
  276
  368
  463
  563
  668
  777
  890
  1,014
  1,139
  1,268
  1,404
  1,546
  1,695
  1,851
  2,015
  2,186
  2,366
  2,555
  2,753
  2,961
  3,180
  3,410
  3,652
  3,907
  4,175
  4,456
  4,753
Tax expense, $m
  17
  4
  28
  51
  75
  99
  125
  152
  180
  210
  240
  274
  307
  342
  379
  418
  458
  500
  544
  590
  639
  690
  743
  800
  859
  921
  986
  1,055
  1,127
  1,203
  1,283
Net income, $m
  -112
  11
  77
  138
  202
  268
  338
  411
  487
  567
  650
  740
  831
  926
  1,025
  1,129
  1,238
  1,351
  1,471
  1,596
  1,727
  1,865
  2,010
  2,162
  2,322
  2,490
  2,666
  2,852
  3,047
  3,253
  3,470

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,435
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  2,897
  1,605
  1,755
  1,911
  2,074
  2,243
  2,418
  2,601
  2,791
  2,988
  3,193
  3,406
  3,627
  3,858
  4,098
  4,348
  4,608
  4,880
  5,163
  5,458
  5,766
  6,088
  6,424
  6,776
  7,144
  7,528
  7,931
  8,352
  8,793
  9,254
  9,738
Adjusted assets (=assets-cash), $m
  1,462
  1,605
  1,755
  1,911
  2,074
  2,243
  2,418
  2,601
  2,791
  2,988
  3,193
  3,406
  3,627
  3,858
  4,098
  4,348
  4,608
  4,880
  5,163
  5,458
  5,766
  6,088
  6,424
  6,776
  7,144
  7,528
  7,931
  8,352
  8,793
  9,254
  9,738
Revenue / Adjusted assets
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
  1.164
Average production assets, $m
  633
  695
  760
  828
  898
  971
  1,047
  1,126
  1,208
  1,294
  1,382
  1,475
  1,571
  1,671
  1,774
  1,883
  1,995
  2,113
  2,235
  2,363
  2,497
  2,636
  2,782
  2,934
  3,093
  3,260
  3,434
  3,616
  3,807
  4,007
  4,217
Working capital, $m
  1,039
  -84
  -92
  -100
  -109
  -117
  -127
  -136
  -146
  -156
  -167
  -178
  -190
  -202
  -215
  -228
  -241
  -256
  -270
  -286
  -302
  -319
  -337
  -355
  -374
  -394
  -415
  -437
  -461
  -485
  -510
Total debt, $m
  841
  546
  681
  821
  967
  1,119
  1,277
  1,442
  1,613
  1,790
  1,974
  2,166
  2,366
  2,573
  2,789
  3,014
  3,248
  3,493
  3,747
  4,013
  4,291
  4,580
  4,883
  5,199
  5,530
  5,876
  6,239
  6,618
  7,014
  7,430
  7,865
Total liabilities, $m
  1,740
  1,445
  1,580
  1,720
  1,866
  2,018
  2,176
  2,341
  2,512
  2,689
  2,873
  3,065
  3,265
  3,472
  3,688
  3,913
  4,147
  4,392
  4,646
  4,912
  5,190
  5,479
  5,782
  6,098
  6,429
  6,775
  7,138
  7,517
  7,913
  8,329
  8,764
Total equity, $m
  1,157
  161
  176
  191
  207
  224
  242
  260
  279
  299
  319
  341
  363
  386
  410
  435
  461
  488
  516
  546
  577
  609
  642
  678
  714
  753
  793
  835
  879
  925
  974
Total liabilities and equity, $m
  2,897
  1,606
  1,756
  1,911
  2,073
  2,242
  2,418
  2,601
  2,791
  2,988
  3,192
  3,406
  3,628
  3,858
  4,098
  4,348
  4,608
  4,880
  5,162
  5,458
  5,767
  6,088
  6,424
  6,776
  7,143
  7,528
  7,931
  8,352
  8,792
  9,254
  9,738
Debt-to-equity ratio
  0.727
  3.400
  3.880
  4.300
  4.660
  4.990
  5.280
  5.540
  5.780
  5.990
  6.180
  6.360
  6.520
  6.670
  6.810
  6.930
  7.050
  7.160
  7.260
  7.350
  7.440
  7.520
  7.600
  7.670
  7.740
  7.810
  7.870
  7.920
  7.980
  8.030
  8.080
Adjusted equity ratio
  0.015
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -112
  11
  77
  138
  202
  268
  338
  411
  487
  567
  650
  740
  831
  926
  1,025
  1,129
  1,238
  1,351
  1,471
  1,596
  1,727
  1,865
  2,010
  2,162
  2,322
  2,490
  2,666
  2,852
  3,047
  3,253
  3,470
Depreciation, amort., depletion, $m
  61
  67
  73
  79
  85
  92
  98
  106
  113
  121
  128
  132
  140
  149
  158
  168
  178
  189
  200
  211
  223
  235
  248
  262
  276
  291
  307
  323
  340
  358
  376
Funds from operations, $m
  234
  78
  150
  217
  287
  360
  437
  517
  600
  688
  778
  872
  971
  1,075
  1,184
  1,297
  1,416
  1,540
  1,670
  1,807
  1,950
  2,100
  2,258
  2,424
  2,598
  2,781
  2,973
  3,175
  3,387
  3,611
  3,846
Change in working capital, $m
  -2
  -8
  -8
  -8
  -9
  -9
  -9
  -10
  -10
  -10
  -11
  -11
  -12
  -12
  -13
  -13
  -14
  -14
  -15
  -15
  -16
  -17
  -18
  -18
  -19
  -20
  -21
  -22
  -23
  -24
  -25
Cash from operations, $m
  236
  434
  157
  225
  295
  369
  446
  526
  610
  698
  789
  883
  983
  1,087
  1,196
  1,310
  1,429
  1,554
  1,685
  1,822
  1,966
  2,117
  2,276
  2,442
  2,617
  2,801
  2,994
  3,197
  3,410
  3,635
  3,871
Maintenance CAPEX, $m
  0
  -57
  -62
  -68
  -74
  -80
  -87
  -93
  -101
  -108
  -116
  -123
  -132
  -140
  -149
  -158
  -168
  -178
  -189
  -200
  -211
  -223
  -235
  -248
  -262
  -276
  -291
  -307
  -323
  -340
  -358
New CAPEX, $m
  -57
  -62
  -65
  -68
  -70
  -73
  -76
  -79
  -82
  -85
  -89
  -92
  -96
  -100
  -104
  -108
  -113
  -118
  -123
  -128
  -133
  -139
  -146
  -152
  -159
  -167
  -174
  -182
  -191
  -200
  -209
Cash from investing activities, $m
  104
  -119
  -127
  -136
  -144
  -153
  -163
  -172
  -183
  -193
  -205
  -215
  -228
  -240
  -253
  -266
  -281
  -296
  -312
  -328
  -344
  -362
  -381
  -400
  -421
  -443
  -465
  -489
  -514
  -540
  -567
Free cash flow, $m
  340
  316
  31
  89
  151
  216
  283
  354
  428
  505
  585
  668
  755
  847
  943
  1,043
  1,148
  1,259
  1,374
  1,495
  1,622
  1,755
  1,895
  2,042
  2,196
  2,358
  2,529
  2,708
  2,897
  3,095
  3,304
Issuance/(repayment) of debt, $m
  -7
  24
  135
  140
  146
  152
  158
  164
  171
  177
  184
  192
  199
  207
  216
  225
  234
  244
  255
  266
  277
  290
  303
  316
  331
  346
  362
  379
  397
  416
  435
Issuance/(repurchase) of shares, $m
  68
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  133
  24
  135
  140
  146
  152
  158
  164
  171
  177
  184
  192
  199
  207
  216
  225
  234
  244
  255
  266
  277
  290
  303
  316
  331
  346
  362
  379
  397
  416
  435
Total cash flow (excl. dividends), $m
  469
  340
  165
  230
  297
  368
  441
  518
  598
  682
  769
  859
  955
  1,055
  1,159
  1,268
  1,383
  1,503
  1,629
  1,761
  1,899
  2,045
  2,197
  2,358
  2,527
  2,704
  2,891
  3,087
  3,293
  3,511
  3,739
Retained Cash Flow (-), $m
  -217
  -120
  -15
  -16
  -16
  -17
  -18
  -18
  -19
  -20
  -20
  -21
  -22
  -23
  -24
  -25
  -26
  -27
  -28
  -30
  -31
  -32
  -34
  -35
  -37
  -38
  -40
  -42
  -44
  -46
  -48
Prev. year cash balance distribution, $m
 
  1,116
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  1,336
  150
  214
  281
  351
  424
  500
  579
  662
  749
  838
  933
  1,032
  1,135
  1,243
  1,357
  1,476
  1,600
  1,731
  1,868
  2,012
  2,164
  2,323
  2,490
  2,666
  2,850
  3,045
  3,249
  3,465
  3,691
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  1,281
  138
  186
  231
  272
  308
  338
  362
  380
  393
  398
  398
  392
  381
  365
  345
  321
  295
  267
  237
  208
  180
  152
  127
  104
  83
  65
  50
  38
  28
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Vertex Pharmaceuticals Incorporated discovers, develops, manufactures, and commercializes medicines for serious diseases. The company focuses on developing and commercializing therapies for the treatment of cystic fibrosis (CF) and advancing its research and development programs. It markets ORKAMBI (lumacaftor in combination with ivacaftor) for the treatment of patients with CF 12 years of age and older who have two copies (homozygous) of the F508del mutation in their cystic fibrosis transmembrane conductance regulator (CFTR) gene; and KALYDECO (ivacaftor) for the treatment of patients with CF 2 years of age and older who have the G551D mutation or other specified mutations in their CFTR gene. The company also develops Tezacaftor (VX-661), a corrector compound that is in a Phase III development program in combination with ivacaftor in multiple CF patients; VX-152 and VX-440 that are CFTR corrector compounds in Phase II clinical trials, as well as VX-659 and VX-445 that are CFTR corrector compounds in Phase I clinical trials; and VX-371, an investigational epithelial sodium channel, which is in a Phase II development program. In addition, it engages in the research and mid-and early-stage development programs in the areas of oncology, pain, and neurology. The company sells its products primarily to specialty pharmacy providers and wholesalers in North America, as well as government-owned and supported customers internationally. Vertex Pharmaceuticals Incorporated has collaborations with Cystic Fibrosis Foundation Therapeutics Incorporated; Parion Sciences, Inc.; CRISPR Therapeutics AG; Moderna Therapeutics, Inc.; BioAxone Biosciences, Inc.; Merck KGaA; and Janssen Pharmaceuticals, Inc. The company was founded in 1989 and is headquartered in Boston, Massachusetts.

FINANCIAL RATIOS  of  Vertex Pharmaceuticals (VRTX)

Valuation Ratios
P/E Ratio -260.3
Price to Sales 17.1
Price to Book 25.2
Price to Tangible Book
Price to Cash Flow 123.5
Price to Free Cash Flow 162.9
Growth Rates
Sales Growth Rate 64.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 26.7%
Cap. Spend. - 3 Yr. Gr. Rate 2.2%
Financial Strength
Quick Ratio 4
Current Ratio 0.1
LT Debt to Equity 45.1%
Total Debt to Equity 72.7%
Interest Coverage 0
Management Effectiveness
Return On Assets -0.2%
Ret/ On Assets - 3 Yr. Avg. -16.1%
Return On Total Capital -6%
Ret/ On T. Cap. - 3 Yr. Avg. -25.2%
Return On Equity -10.7%
Return On Equity - 3 Yr. Avg. -42.2%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 87.8%
Gross Margin - 3 Yr. Avg. 89.9%
EBITDA Margin 4.6%
EBITDA Margin - 3 Yr. Avg. -46.4%
Operating Margin 0.6%
Oper. Margin - 3 Yr. Avg. -52.6%
Pre-Tax Margin -3.9%
Pre-Tax Margin - 3 Yr. Avg. -61.6%
Net Profit Margin -6.6%
Net Profit Margin - 3 Yr. Avg. -62.6%
Effective Tax Rate -25.4%
Eff/ Tax Rate - 3 Yr. Avg. -10.6%
Payout Ratio 0%

VRTX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the VRTX stock intrinsic value calculation we used $1702 million for the last fiscal year's total revenue generated by Vertex Pharmaceuticals. The default revenue input number comes from 2016 income statement of Vertex Pharmaceuticals. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our VRTX stock valuation model: a) initial revenue growth rate of 9.8% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for VRTX is calculated based on our internal credit rating of Vertex Pharmaceuticals, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Vertex Pharmaceuticals.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of VRTX stock the variable cost ratio is equal to 29%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1229 million in the base year in the intrinsic value calculation for VRTX stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 10.1% for Vertex Pharmaceuticals.

Corporate tax rate of 27% is the nominal tax rate for Vertex Pharmaceuticals. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the VRTX stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for VRTX are equal to 37.2%.

Life of production assets of 11.2 years is the average useful life of capital assets used in Vertex Pharmaceuticals operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for VRTX is equal to -4.5%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $1157 million for Vertex Pharmaceuticals - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 253.224 million for Vertex Pharmaceuticals is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Vertex Pharmaceuticals at the current share price and the inputted number of shares is $29.7 billion.


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COMPANY NEWS

▶ Mixed bag for biotech earnings   [Apr-27-17 05:16PM  CNBC Videos]
▶ Vertex beats Street 1Q forecasts   [04:52PM  Associated Press]
▶ Vertex Crushes Q1 Sales Expectations; Profit Tops By A Penny   [04:09PM  Investor's Business Daily]
▶ Vertex Reports Late Thursday: Cystic Fibrosis Treatment In Spotlight   [Apr-26-17 04:01PM  Investor's Business Daily]
▶ Time for Big Cap Biotech   [12:14PM  Investopedia]
▶ 3 Stocks That Growth Investors Should Love   [Apr-23-17 11:01AM  Motley Fool]
▶ Trump invites Vertex CEO to White House for biotech summit   [Apr-21-17 04:45PM  American City Business Journals]
▶ Vertex at odds with religious investors over lobbying disclosures   [Apr-18-17 07:44PM  American City Business Journals]
▶ Vertex CEO's compensation, stock value fell in 2016   [Apr-17-17 04:50PM  American City Business Journals]
▶ Retirement Accounts Benefit From Columbia Fund's Tech Bets   [Apr-13-17 04:45PM  Investor's Business Daily]
▶ 3 Best Performing Stocks in March   [Apr-10-17 12:42PM  Motley Fool]
▶ 3 Great Stocks on Sale to Buy Today   [09:11AM  Motley Fool]
▶ 3 Top Stocks to Buy in Q2   [Apr-06-17 04:21PM  Motley Fool]
▶ Stocks To Watch In Market Weakness   [01:49PM  Benzinga]
▶ Harry Boxers four stocks to watch   [12:51PM  MarketWatch]
▶ The 5 Best Performing S&P 500 Stocks for Q1   [Apr-01-17 09:15AM  24/7 Wall St.]
▶ Can Vertex Keep Climbing?   [09:43AM  at Barrons.com]
▶ Company News for March 30, 2017   [10:10AM  at Investopedia]
▶ The Hot Stock: Vertex Pharmaceuticals Soars 20%   [Mar-29-17 05:34PM  at Barrons.com]
▶ S&P edges up as energy gains, Vertex soars   [03:47PM  at Investopedia]
▶ Why Vertex Has Soared 24%   [10:59AM  at Barrons.com]
▶ [$$] Vertex Pharmaceuticals hails new cystic fibrosis drug   [Mar-28-17 09:08PM  at Financial Times]
▶ Inside the small Norwood biotech that's making investors swoon   [Mar-17-17 07:30AM  at bizjournals.com]
▶ 3 Biotech Stocks to Buy in March   [Mar-10-17 12:07PM  at Motley Fool]
▶ Harry Boxers six biotechnology stocks to watch   [Mar-07-17 01:55PM  at MarketWatch]
Stock chart of VRTX Financial statements of VRTX
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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