Vertex Pharmaceuticals Inc. / Ma (VRTX) intrinsic value & 10-year financials
Vertex Pharmaceuticals Inc. / Ma (VRTX) has a Graham intrinsic value of $508.86 per share. At $499.74 on Oct 17, 2026, the stock trades 2% below that value. Over the last 10 fiscal years revenue grew 24.2% a year to $12.0B, with an average return on invested capital of 34.3%.
- Graham intrinsic value
- $508.86
- Share price (Oct 17, 2026)
- $499.74
- Price vs Graham value
- 2% below
- Market cap
- $128.9B
- Revenue (FY2025)
- $12.0B
- Revenue growth (10-yr CAGR)
- 24.2%
- ROIC (10-yr avg)
- 34.3%
- Free cash flow (FY2025)
- $3.2B
VRTX 10-year financial history
| Fiscal year | Revenue | Net income | EPS (diluted) | Free cash flow | Operating margin | ROIC |
|---|---|---|---|---|---|---|
| FY2025 | $12.0B | $4.0B | $15.32 | $3.2B | 34.8% | 24.5% |
| FY2024 | $11.0B | -$535.6M | -$2.08 | -$790.3M | -2.1% | -1.1% |
| FY2023 | $9.9B | $3.6B | $13.89 | $3.3B | 38.8% | 52.1% |
| FY2022 | $8.9B | $3.3B | $12.82 | $3.9B | 48.2% | 80.4% |
| FY2021 | $7.6B | $2.3B | $9.01 | $2.4B | 36.7% | 61.3% |
| FY2020 | $6.2B | $2.7B | $10.29 | $3.0B | 46.0% | 69.2% |
| FY2019 | $4.2B | $1.2B | $4.51 | $1.5B | 28.8% | 28.1% |
| FY2018 | $3.0B | $2.1B | $8.09 | $1.2B | 20.8% | 19.7% |
| FY2017 | $2.5B | $263.5M | $1.04 | $745.5M | 5.0% | 7.7% |
| FY2016 | $1.7B | -$112.1M | -$0.46 | $179.5M | 0.6% | 0.9% |
Source: annual 10-K filings on SEC EDGAR. Figures in USD.
Executive summary
Vertex Pharmaceuticals is a consistent compounder, expanding top-line revenue at 24.2% annually over the past decade.
Vertex Pharmaceuticals has earned high returns on invested capital, averaging 34.3% ROIC over the available history. High ROIC is consistent with a durable franchise, but it is not by itself proof of an economic moat.
Vertex Pharmaceuticals has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.
Benjamin Graham lens
Under Benjamin Graham's formula using SEC EDGAR fundamentals, Vertex Pharmaceuticals is modeled at 15.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $508.86 per share.