VRTXNEUTRAL

VRTX EV/EBITDA Analysis

25.8x

Updated 81h ago·SEC filings & market data

Key Takeaway

EV/EBITDA is the ratio of a company’s enterprise value (market value plus debt minus cash) to its operating profit before interest, taxes, depreciation, and amortization; a value of 24.0x means investors pay $24 for every $1 of that operating profit.

Sector Performance

84th percentile

VRTX

25.8x

Sector Median

13.6x

Sector Avg

-30.9x

Prior Period

24.0x(Aug 2026)

↓ Declining

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Deep Analysis

For context, the sector median is 13.5x, and VRTX sits at the 81st percentile among peers, meaning it is more expensive than roughly 80% of comparable companies. The trend is stable across the last 8 quarters, with a quarter-over-quarter change of -2.2% from 24.5x to 24.0x; the year-over-year change is not available. The combination of a high valuation relative to peers and a stable trend implies the market is comfortable sustaining a premium, which leaves little room for multiple expansion and raises the risk of a de-rating if operating results miss expectations. This metric supports the overall NEUTRAL verdict: the elevated EV/EBITDA suggests limited upside potential from valuation alone, while the stable trend indicates no immediate deterioration in the company's earnings power.

Frequently Asked Questions

What does the EV/EBITDA tell investors about VRTX?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are VRTX's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: SMTC (76.6x), SHOP (80.2x), OKTA (83.5x), TEAM (101.4x), STEM (102.7x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.