Vertex Z Score

VRTX
 Stock
  

USD 302.02  1.38  0.46%   

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Also, please take a look at Vertex Pharmaceutic Piotroski F Score and Vertex Pharmaceutic Valuation analysis.
  

Vertex Z Score Analysis

Vertex Pharmaceutic's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
Z Score 
 = 
Sum Of  
 
5 Factors 
More About Z Score | All Equity Analysis

Current Vertex Pharmaceutic Z Score

    
  53.9  
Most of Vertex Pharmaceutic's fundamental indicators, such as Z Score, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Vertex Pharmaceutic is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
First Factor
 = 
1.2 * (
Working Capital
/
Total Assets )
Second Factor
 = 
1.4 * (
Retained Earnings
/
Total Assets )
Thrid Factor
 = 
3.3 * (
EBITAD
/
Total Assets )
Fouth Factor
 = 
0.6 * (
Market Value of Equity
/
Total Liabilities )
Fifth Factor
 = 
0.99 * (
Revenue
/
Total Assets )
To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition

As per the company's disclosures, Vertex Pharmaceutic has a Z Score of 53. This is much higher than that of the Healthcare sector and notably higher than that of the Biotechnology industry. The z score for all United States stocks is notably lower than that of the firm.

Vertex Z Score Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Vertex Pharmaceutic's direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Vertex Pharmaceutic could also be used in its relative valuation, which is a method of valuing Vertex Pharmaceutic by comparing valuation metrics of similar companies.
Vertex Pharmaceutic is currently under evaluation in z score category among related companies.

Vertex Pharmaceutic Institutional Holders

Institutional Holdings refers to the ownership stake in Vertex Pharmaceutic that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Vertex Pharmaceutic's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Vertex Pharmaceutic's value.
Security TypeSharesValue
Blackrock IncCommon Shares25.1 M7.1 B
Vanguard Group IncCommon Shares20.8 M5.9 B
Fmr LlcCommon Shares16.8 M4.7 B
Capital World InvestorsCommon Shares12.6 M3.5 B
State Street CorpCommon Shares12.3 M3.5 B
Alliancebernstein LpCommon Shares9.3 M2.6 B
Wellington Management Group LlpCommon Shares8.2 M2.3 B

Vertex Fundamentals

About Vertex Pharmaceutic Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Vertex Pharmaceutic's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Vertex Pharmaceutic using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Vertex Pharmaceutic based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Vertex Pharmaceuticals Incorporated, a biotechnology company, engages in developing and commercializing therapies for treating cystic fibrosis. Vertex Pharmaceuticals Incorporated was founded in 1989 and is headquartered in Boston, Massachusetts. Vertex Pharmaceutic operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 00 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Vertex Pharmaceutic without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Also, please take a look at Vertex Pharmaceutic Piotroski F Score and Vertex Pharmaceutic Valuation analysis. You can also try Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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Is Vertex Pharmaceutic's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Vertex Pharmaceutic. If investors know Vertex will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Vertex Pharmaceutic listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Vertex Pharmaceutic is measured differently than its book value, which is the value of Vertex that is recorded on the company's balance sheet. Investors also form their own opinion of Vertex Pharmaceutic's value that differs from its market value or its book value, called intrinsic value, which is Vertex Pharmaceutic's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Vertex Pharmaceutic's market value can be influenced by many factors that don't directly affect Vertex Pharmaceutic's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Vertex Pharmaceutic's value and its price as these two are different measures arrived at by different means. Investors typically determine Vertex Pharmaceutic value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vertex Pharmaceutic's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.