VRTX PEG Ratio Analysis
Updated 53h ago·SEC filings & market data
Key Takeaway
The PEG ratio (price-to-earnings divided by earnings growth) measures whether a stock's valuation is reasonable relative to its expected profit growth; a ratio below 1.0 typically signals potential undervaluation.
Sector Performance
32th percentileVRTX
0.49x
Sector Median
0.97x
Sector Avg
2.92x
Prior Period
0.43x(Jun 2026)
Deep Analysis
The PEG ratio (price-to-earnings divided by earnings growth) measures whether a stock's valuation is reasonable relative to its expected profit growth; a ratio below 1.0 typically signals potential undervaluation.
VRTX’s current 0.49x is well below the sector median of 0.97x and places the stock in the 31st percentile among sector peers, indicating it trades at a relatively low PEG compared to similar companies. Year-over-year change is not available, but the quarter-over-quarter change shows a +14.0% increase from 0.43x in the prior quarter to 0.49x currently. The combination of a low PEG level (suggesting cheapness) with a rising trend (growth expectations may be weakening or the price is catching up) creates a mixed risk profile: the low level offers a potential margin of safety, while the upward movement could mean that the discount is narrowing. This metric partially supports the overall NEUTRAL verdict because the attractive PEG is offset by the recent increase, leaving no clear bullish or bearish conviction.
Frequently Asked Questions
What does the PEG Ratio tell investors about VRTX?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
Who are VRTX's closest peers by PEG Ratio?
The closest peers by PEG Ratio include: EBAY (8.15x), VTR (8.27x), DOV (8.39x), MTD (8.61x), KR (9.25x).
Learn More About PEG Ratio
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
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0.49x
Sector Median
0.97x
Sector Avg
2.92x
How VRTX's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.