VRTX FCF Yield Analysis
Updated 81h ago·SEC filings & market data
Key Takeaway
FCF Yield measures the free cash flow a company generates relative to its market value, expressed as 2.5% here — so for every $100 of equity value, VRTX produces $2.50 in annual free cash flow.
Sector Performance
28th percentileVRTX
2.3%
Sector Median
4.2%
Sector Avg
9.2%
Prior Period
2.5%(Aug 2026)
Deep Analysis
FCF Yield measures the free cash flow a company generates relative to its market value, expressed as 2.5% here — so for every $100 of equity value, VRTX produces $2.50 in annual free cash flow.
This sits below the sector median of 4.1%, placing VRTX in the 30th percentile among peers, meaning most comparable companies offer a higher cash return. The metric has been decreasing over the last 8 quarters, though the year-over-year change is not available; quarter-over-quarter, it rose 4.2% to 2.5% from 2.4%. The combination of a below-median level and a longer-run downward trend points to weaker cash generation relative to valuation, which raises caution, despite the recent quarterly uptick. This supports the overall NEUTRAL verdict: the low percentile and decreasing trend argue against a bullish case, while the QoQ improvement keeps the stock from a clearly negative outlook.
Frequently Asked Questions
What does the FCF Yield tell investors about VRTX?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
Who are VRTX's closest peers by FCF Yield?
The closest peers by FCF Yield include: JACK (23.5%), BBWI (23.7%), YELP (25.7%), MET (27.9%), WIX (29.2%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master VRTX's Valuation
Get the complete institutional research report covering all fundamental and technical metrics.
View full VRTX research report →VRTX
2.3%
Sector Median
4.2%
Sector Avg
9.2%
How VRTX's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.