VRTX VRTX

Name: VRTX Crucible Score
Creator: Kaladin Capital Intelligence

UnknownUnknownN/A📅 Scored April 20, 2026

Price at analysis: $441.20

Crucible Score

55.4

Quality × Value Composite

KQI — Quality

64.9

B-

Fundamental Quality Index

KVI — Value

43.7

Valuation Attractiveness Index

Crucible Verdict — VRTX

Vertex Pharmaceuticals presents a classic quality-value disconnect, with strong financial metrics (87 quality score) overshadowed by poor value proposition (44 score) and weak diversification (38). VRTX trades at a meaningful discount to fair value despite solid market position, though insider selling and modest growth profile (46) suggest limited near-term catalysts. The valuation gap creates opportunity if pipeline execution improves.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality

87.0

Growth Profile

46.5

Moat Durability

62.0

Management Effectiveness⚠

63.7

Diversification & Resilience

38.2

Market Position

72.0

Weakest dimension: Diversification & Resilience (38.2)

◆ KVI Value Dimensions

DCF Margin of Safety

70.6

FCF Yield & Cash Returns

35.3

Relative Valuation

40.9

Growth-Adjusted Value

11.4

Historical Valuation

35.0

Macro Context

45.4

◆ DCF Valuation Scenarios

Bear Case

$362.50

Base Case

$518.70

Bull Case

$721.30

Price at Analysis

$441.20

Scenario	Fair Value	Rev CAGR (5yr)	Terminal Margin	WACC
🔴 Bear	$362.50	8.0%	36.0%	6.5%
🟢 Base	$518.70	11.0%	40.0%	6.2%
🟢 Bull	$721.30	14.0%	44.0%	5.9%

Key Assumptions: WACC calculated using CAPM with 4.32% risk-free rate, 0.37 beta, and 5.5% ERP yielding ~6.35% base cost of equity; debt is modest so WACC ranges 5.9%-6.5% across scenarios. Revenue growth anchored on ~10% trailing CAGR (excluding anomalous year), with CF-to-cystic-fibrosis franchise maturation offset by pipeline catalysts (pain, kidney disease). Tax rate normalized at 16% reflecting VRTX's historical biotech-favorable effective rate, excluding the anomalous 315% year driven by one-time charges.

◆ Financial Snapshot

Profitability

Gross Margin86.3%

Operating Margin35.5%

Net Margin32.8%

ROIC15.0%

ROE18.7%

Balance Sheet

Balance SheetCR: 2.90

Cash ConversionFCF/EPS: 0.81x

Capital IntensityCapex/Rev: 3.6%

Altman Z-Score11.11 (Safe)

Piotroski F-Score6/9 (Good)

Growth

Revenue CAGR-36.9% CAGR (suspect)

Earnings CAGR-35.9% CAGR (suspect)

Growth ConsistencyCV: 2.80

Segment Breadth2/2 growing (100%)

Quarterly TrendMargin↑, Cash↓, Exp↓

Earnings CredibilityMixed

◆ Analyst Consensus & Leadership

Leadership & Governance

CEOOtokar Garipov · 3 years

CEO Ownership< 1%

Insider ActivitySelling

Capital AllocationROIC 15.0% vs WACC 0.3%

Earnings Beat Rate66% (15/22)

◆ Related Companies in Our Universe

Other Unknown companies scored by the Crucible:

ADBE81.8A-NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+

Methodology All Scores Crucible Briefs Performance @KaladinCI

Analysis conducted April 20, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.