Vertex Enterprise Value vs Free Cash Flow Analysis

VRTX Stock

USD 397.36 0.81 0.20%

Vertex Pharmaceuticals financial indicator trend analysis is much more than just breaking down Vertex Pharmaceuticals prevalent accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Vertex Pharmaceuticals is a good investment. Please check the relationship between Vertex Pharmaceuticals Enterprise Value and its Free Cash Flow accounts. Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Vertex Pharmaceuticals. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate.

For more information on how to buy Vertex Stock please use our How to Invest in Vertex Pharmaceuticals guide.

Enterprise Value vs Free Cash Flow

Enterprise Value vs Free Cash Flow Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Vertex Pharmaceuticals Enterprise Value account and Free Cash Flow. At this time, the significance of the direction appears to have significant contrarian relationship.

The correlation between Vertex Pharmaceuticals' Enterprise Value and Free Cash Flow is -0.26. Overlapping area represents the amount of variation of Enterprise Value that can explain the historical movement of Free Cash Flow in the same time period over historical financial statements of Vertex Pharmaceuticals, assuming nothing else is changed. The correlation between historical values of Vertex Pharmaceuticals' Enterprise Value and Free Cash Flow is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Enterprise Value of Vertex Pharmaceuticals are associated (or correlated) with its Free Cash Flow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Free Cash Flow has no effect on the direction of Enterprise Value i.e., Vertex Pharmaceuticals' Enterprise Value and Free Cash Flow go up and down completely randomly.

Correlation Coefficient

-0.26

Relationship Direction	Negative
Relationship Strength	Insignificant

View All Relationships

Enterprise Value

Enterprise Value (or EV) is usually referred to as Vertex Pharmaceuticals theoretical takeover price. In the event of an acquisition, an acquirer would have to take on Vertex Pharmaceuticals debt, but would also pocket its cash. Enterprise Value is more accurate representation of Vertex Pharmaceuticals value than its market capitalization because it takes into account all of Vertex Pharmaceuticals existing debt. A measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization that includes the market capitalization, plus total debt, minority interest and preferred shares, minus total cash and cash equivalents.

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Most indicators from Vertex Pharmaceuticals' fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Vertex Pharmaceuticals current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Vertex Pharmaceuticals. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate.

For more information on how to buy Vertex Stock please use our How to Invest in Vertex Pharmaceuticals guide.At this time, Vertex Pharmaceuticals' Selling General Administrative is fairly stable compared to the past year. Tax Provision is likely to rise to about 798.2 M in 2024, whereas Discontinued Operations is likely to drop (861.8 K) in 2024.

	2021	2022	2023	2024 (projected)
Gross Profit	6.7B	7.9B	8.6B	9.0B
Total Revenue	7.6B	8.9B	9.8B	10.3B

Gross Profit Total Revenue

Vertex Pharmaceuticals fundamental ratios Correlations

	Total Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Property Plant And Equipment Net	Net Debt	Retained Earnings	Cash	Non Current Assets Total	Non Currrent Assets Other	Cash And Short Term Investments	Common Stock Shares Outstanding	Non Current Liabilities Total	Other Current Assets	Other Stockholder Equity	Total Liab	Total Current Assets	Short Term Debt	Accounts Payable	Property Plant And Equipment Gross	Net Receivables	Common Stock Total Equity	Common Stock	Other Assets	Long Term Debt
Total Assets		0.37	0.96	0.98	1.0	0.88	-0.98	0.94	0.99	0.99	0.89	0.99	0.21	0.58	0.45	0.59	0.99	1.0	-0.06	0.98	0.94	0.99	0.36	0.37	0.86	0.04
Short Long Term Debt Total	0.37		0.31	0.35	0.34	0.64	-0.25	0.13	0.32	0.41	0.2	0.34	0.6	0.8	0.08	0.7	0.49	0.35	0.3	0.44	0.43	0.32	0.7	0.7	0.24	0.65
Other Current Liab	0.96	0.31		0.99	0.96	0.81	-0.92	0.94	0.93	0.96	0.82	0.94	0.11	0.47	0.54	0.48	0.94	0.95	-0.16	0.95	0.89	0.94	0.28	0.29	0.77	0.04
Total Current Liabilities	0.98	0.35	0.99		0.98	0.84	-0.94	0.94	0.95	0.98	0.84	0.96	0.17	0.51	0.57	0.54	0.97	0.97	-0.09	0.97	0.91	0.97	0.33	0.34	0.82	0.03
Total Stockholder Equity	1.0	0.34	0.96	0.98		0.88	-0.98	0.95	0.99	0.99	0.89	0.99	0.18	0.55	0.44	0.57	0.98	1.0	-0.08	0.97	0.94	0.99	0.34	0.35	0.87	0.01
Property Plant And Equipment Net	0.88	0.64	0.81	0.84	0.88		-0.83	0.72	0.86	0.88	0.76	0.88	0.46	0.79	0.2	0.8	0.91	0.88	-0.07	0.86	0.91	0.86	0.61	0.61	0.75	0.26
Net Debt	-0.98	-0.25	-0.92	-0.94	-0.98	-0.83		-0.94	-1.0	-0.94	-0.96	-0.99	-0.2	-0.55	-0.38	-0.54	-0.96	-0.99	0.06	-0.95	-0.94	-0.99	-0.33	-0.34	-0.84	0.0
Retained Earnings	0.94	0.13	0.94	0.94	0.95	0.72	-0.94		0.94	0.93	0.84	0.93	-0.1	0.34	0.47	0.29	0.89	0.94	-0.12	0.93	0.88	0.93	0.06	0.07	0.79	-0.14
Cash	0.99	0.32	0.93	0.95	0.99	0.86	-1.0	0.94		0.96	0.95	1.0	0.21	0.58	0.39	0.57	0.97	1.0	-0.05	0.96	0.95	0.99	0.35	0.36	0.84	0.02
Non Current Assets Total	0.99	0.41	0.96	0.98	0.99	0.88	-0.94	0.93	0.96		0.83	0.96	0.19	0.54	0.49	0.59	0.98	0.97	-0.06	0.96	0.91	0.97	0.36	0.37	0.88	0.04
Non Currrent Assets Other	0.89	0.2	0.82	0.84	0.89	0.76	-0.96	0.84	0.95	0.83		0.94	0.27	0.58	0.25	0.54	0.88	0.92	-0.04	0.86	0.9	0.94	0.35	0.36	0.75	0.03
Cash And Short Term Investments	0.99	0.34	0.94	0.96	0.99	0.88	-0.99	0.93	1.0	0.96	0.94		0.23	0.6	0.4	0.59	0.98	1.0	-0.07	0.97	0.95	0.99	0.37	0.38	0.85	0.04
Common Stock Shares Outstanding	0.21	0.6	0.11	0.17	0.18	0.46	-0.2	-0.1	0.21	0.19	0.27	0.23		0.65	-0.01	0.82	0.3	0.22	0.18	0.2	0.27	0.23	0.97	0.97	0.23	0.6
Non Current Liabilities Total	0.58	0.8	0.47	0.51	0.55	0.79	-0.55	0.34	0.58	0.54	0.58	0.6	0.65		-0.11	0.79	0.67	0.59	0.1	0.61	0.66	0.57	0.72	0.73	0.39	0.53
Other Current Assets	0.45	0.08	0.54	0.57	0.44	0.2	-0.38	0.47	0.39	0.49	0.25	0.4	-0.01	-0.11		0.13	0.46	0.43	0.27	0.47	0.29	0.43	0.1	0.1	0.33	-0.2
Other Stockholder Equity	0.59	0.7	0.48	0.54	0.57	0.8	-0.54	0.29	0.57	0.59	0.54	0.59	0.82	0.79	0.13		0.66	0.58	0.07	0.55	0.58	0.59	0.87	0.88	0.59	0.41
Total Liab	0.99	0.49	0.94	0.97	0.98	0.91	-0.96	0.89	0.97	0.98	0.88	0.98	0.3	0.67	0.46	0.66		0.99	0.01	0.98	0.94	0.98	0.46	0.47	0.83	0.12
Total Current Assets	1.0	0.35	0.95	0.97	1.0	0.88	-0.99	0.94	1.0	0.97	0.92	1.0	0.22	0.59	0.43	0.58	0.99		-0.06	0.98	0.95	0.99	0.36	0.37	0.85	0.03
Short Term Debt	-0.06	0.3	-0.16	-0.09	-0.08	-0.07	0.06	-0.12	-0.05	-0.06	-0.04	-0.07	0.18	0.1	0.27	0.07	0.01	-0.06		-0.02	-0.04	-0.04	0.18	0.18	-0.18	-0.15
Accounts Payable	0.98	0.44	0.95	0.97	0.97	0.86	-0.95	0.93	0.96	0.96	0.86	0.97	0.2	0.61	0.47	0.55	0.98	0.98	-0.02		0.94	0.96	0.37	0.38	0.81	0.1
Property Plant And Equipment Gross	0.94	0.43	0.89	0.91	0.94	0.91	-0.94	0.88	0.95	0.91	0.9	0.95	0.27	0.66	0.29	0.58	0.94	0.95	-0.04	0.94		0.95	0.4	0.41	0.78	0.11
Net Receivables	0.99	0.32	0.94	0.97	0.99	0.86	-0.99	0.93	0.99	0.97	0.94	0.99	0.23	0.57	0.43	0.59	0.98	0.99	-0.04	0.96	0.95		0.36	0.37	0.86	0.02
Common Stock Total Equity	0.36	0.7	0.28	0.33	0.34	0.61	-0.33	0.06	0.35	0.36	0.35	0.37	0.97	0.72	0.1	0.87	0.46	0.36	0.18	0.37	0.4	0.36		1.0	0.34	0.61
Common Stock	0.37	0.7	0.29	0.34	0.35	0.61	-0.34	0.07	0.36	0.37	0.36	0.38	0.97	0.73	0.1	0.88	0.47	0.37	0.18	0.38	0.41	0.37	1.0		0.35	0.6
Other Assets	0.86	0.24	0.77	0.82	0.87	0.75	-0.84	0.79	0.84	0.88	0.75	0.85	0.23	0.39	0.33	0.59	0.83	0.85	-0.18	0.81	0.78	0.86	0.34	0.35		0.01
Long Term Debt	0.04	0.65	0.04	0.03	0.01	0.26	0.0	-0.14	0.02	0.04	0.03	0.04	0.6	0.53	-0.2	0.41	0.12	0.03	-0.15	0.1	0.11	0.02	0.61	0.6	0.01

Click cells to compare fundamentals

Vertex Pharmaceuticals Account Relationship Matchups

Vertex Pharmaceuticals fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Total Assets	8.3B	11.8B	13.4B	18.2B	22.7B	23.9B
Short Long Term Debt Total	577.4M	581.5M	556.7M	561M	808.4M	848.8M
Other Current Liab	1.0B	1.2B	1.5B	1.9B	2.9B	3.1B
Total Current Liabilities	1.2B	1.6B	1.9B	2.4B	3.5B	3.7B
Total Stockholder Equity	6.1B	8.7B	10.1B	13.9B	17.6B	18.5B
Property Plant And Equipment Net	745.1M	958.5M	1.1B	1.1B	1.5B	1.5B
Net Debt	(2.5B)	(5.4B)	(6.2B)	(9.9B)	(9.6B)	(9.1B)
Retained Earnings	(1.9B)	858.7M	3.2B	6.5B	10.1B	10.6B
Cash	3.1B	6.0B	6.8B	10.5B	10.4B	10.9B
Non Current Assets Total	3.7B	3.9B	4.4B	5.5B	8.6B	9.0B
Non Currrent Assets Other	326.9M	662.5M	901.1M	1.3B	796.7M	836.5M
Cash And Short Term Investments	3.8B	6.7B	7.5B	10.8B	11.2B	11.8B
Common Stock Shares Outstanding	260.7M	263.4M	259.9M	259.1M	260.5M	153.1M
Liabilities And Stockholders Equity	8.3B	11.8B	13.4B	18.2B	22.7B	23.9B
Non Current Liabilities Total	1.0B	1.5B	1.5B	1.8B	1.6B	1.7B
Other Current Assets	213.5M	308.4M	187.2M	74.4M	620.5M	651.5M
Other Stockholder Equity	7.9B	7.9B	6.9B	7.4B	7.4B	7.8B
Total Liab	2.2B	3.1B	3.3B	4.2B	5.1B	5.4B
Total Current Assets	4.6B	7.8B	9.0B	12.7B	14.1B	14.9B
Short Term Debt	30.3M	42.4M	46.9M	89.4M	83.7M	51.0M
Accounts Payable	87.6M	155.1M	195M	303.9M	364.9M	383.1M
Property Plant And Equipment Gross	745.1M	958.5M	2.3B	2.5B	2.6B	2.8B
Accumulated Other Comprehensive Income	(2.0M)	(68.5M)	15.9M	800K	(14.3M)	(13.6M)
Net Receivables	633.5M	885.4M	1.1B	1.4B	1.6B	1.6B
Common Stock Total Equity	2.6M	2.6M	2.5M	2.6M	3.0M	1.9M
Common Stock	2.6M	2.6M	2.5M	2.6M	3.0M	2.0M
Other Assets	1.2B	587.0M	986.9M	1.4B	1.6B	1.7B
Short Term Investments	699.0M	670.7M	729.9M	274.5M	849.2M	579.6M
Property Plant Equipment	833.3M	958.5M	1.1B	1.5B	1.7B	1.8B
Other Liab	275.5M	923.4M	902.2M	685.8M	788.7M	828.1M
Current Deferred Revenue	62.3M	191.5M	171.7M	159.6M	170.3M	118.8M
Inventory	167.5M	280.8M	353.1M	460.6M	738.8M	775.7M
Net Tangible Assets	4.7B	7.3B	8.7B	12.2B	14.1B	14.8B
Retained Earnings Total Equity	(1.9B)	858.7M	3.2B	6.5B	7.5B	7.9B
Long Term Debt Total	583.9M	581.6M	538.6M	539.0M	619.9M	632.6M

Vertex Pharmaceuticals Investors Sentiment

The influence of Vertex Pharmaceuticals' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Vertex. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.

Investor biases related to Vertex Pharmaceuticals' public news can be used to forecast risks associated with an investment in Vertex. The trend in average sentiment can be used to explain how an investor holding Vertex can time the market purely based on public headlines and social activities around Vertex Pharmaceuticals. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Vertex Pharmaceuticals' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Vertex Pharmaceuticals' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Vertex Pharmaceuticals' news discussions. The higher the estimated score, the more favorable is the investor's outlook on Vertex Pharmaceuticals.

Vertex Pharmaceuticals Implied Volatility

34.64

Vertex Pharmaceuticals' implied volatility exposes the market's sentiment of Vertex Pharmaceuticals stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Vertex Pharmaceuticals' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Vertex Pharmaceuticals stock will not fluctuate a lot when Vertex Pharmaceuticals' options are near their expiration.

Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Vertex Pharmaceuticals in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Vertex Pharmaceuticals' short interest history, or implied volatility extrapolated from Vertex Pharmaceuticals options trading.

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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.

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When determining whether Vertex Pharmaceuticals offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Vertex Pharmaceuticals' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Vertex Pharmaceuticals Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Vertex Pharmaceuticals Stock:

How To Invest In Vertex

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Is Vertex Stock a good investment?

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What is Vertex Pharmaceuticals' Net Worth?

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Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Vertex Pharmaceuticals. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate.

For more information on how to buy Vertex Stock please use our How to Invest in Vertex Pharmaceuticals guide.

You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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When running Vertex Pharmaceuticals' price analysis, check to measure Vertex Pharmaceuticals' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Vertex Pharmaceuticals is operating at the current time. Most of Vertex Pharmaceuticals' value examination focuses on studying past and present price action to predict the probability of Vertex Pharmaceuticals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Vertex Pharmaceuticals' price. Additionally, you may evaluate how the addition of Vertex Pharmaceuticals to your portfolios can decrease your overall portfolio volatility.

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Is Vertex Pharmaceuticals' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Vertex Pharmaceuticals. If investors know Vertex will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Vertex Pharmaceuticals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Quarterly Earnings Growth

0.181

Earnings Share

13.88

Revenue Per Share

38.297

Quarterly Revenue Growth

0.093

Return On Assets

0.1317

The market value of Vertex Pharmaceuticals is measured differently than its book value, which is the value of Vertex that is recorded on the company's balance sheet. Investors also form their own opinion of Vertex Pharmaceuticals' value that differs from its market value or its book value, called intrinsic value, which is Vertex Pharmaceuticals' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Vertex Pharmaceuticals' market value can be influenced by many factors that don't directly affect Vertex Pharmaceuticals' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Vertex Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Vertex Pharmaceuticals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vertex Pharmaceuticals' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

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Vertex Enterprise Value vs Free Cash Flow Analysis

Enterprise Value vs Free Cash Flow

Enterprise Value vs Free Cash Flow Correlation Analysis

Correlation Coefficient

Enterprise Value

Free Cash Flow

Vertex Pharmaceuticals fundamental ratios Correlations

Vertex Pharmaceuticals Account Relationship Matchups

High Positive Relationship

High Negative Relationship

Vertex Pharmaceuticals fundamental ratios Accounts

Vertex Pharmaceuticals Investors Sentiment

Vertex Pharmaceuticals Implied Volatility

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COMMON DESTINATIONS

MAIN CATEGORIES

COMPANY

Total Stockholder Equity	+ 1.0	Total Assets
Total Current Assets	+ 1.0	Total Assets
Total Current Assets	+ 1.0	Total Stockholder Equity
Cash And Short Term Investments	+ 1.0	Cash
Total Current Assets	+ 1.0	Cash
Total Current Assets	+ 1.0	Cash And Short Term Investments

Cash	- 1.0	Net Debt
Net Receivables	- 0.99	Net Debt
Total Current Assets	- 0.99	Net Debt
Cash And Short Term Investments	- 0.99	Net Debt
Net Debt	- 0.98	Total Stockholder Equity
Net Debt	- 0.98	Total Assets