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DCF Valuation
Base-case fair value
$302.46
Intrinsic $403.28 · 25% MOS
Base-case summary
Our base-case DCF for Vertex Pharmaceuticals Inc (VRTX) projects 10 years of free cash flow growth at 9.0% for years 1–5 and 4.5% for years 6–10, anchored to 9.0% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $3.7B in trailing free cash flow, this produces an intrinsic value of $403.28 per share. A 25% safety margin gives a fair value of $302.46.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$3.7B
Cash & equivalents
$7.2B
Total debt
$2.0B
Shares outstanding
256M