Using the PEG framework with analyst consensus forward EPS growth of 17.0%, Vertex Pharmaceuticals Incorporated has a fair value of $328.75 based on NTM EPS (FY2026) of $19.32. The current PEG ratio is 1.39.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 17.0% |
| Adjusted Growth (clamped 8–25%) | 17.0% |
| Fair P/E | 17.0x |
| NTM EPS (FY2026) | $19.32 |
| Fair Value | $328.75 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $15.32 | — | — |
| FY2026E | $19.32 | +26.1% | 23 |
| FY2027E | $22.25 | +15.2% | 22 |
| FY2028E | $25.20 | +13.2% | 23 |
| FY2029E | $29.57 | +17.4% | 11 |
| FY2030E | $33.61 | +13.7% | 11 |
5Y Forward EPS CAGR: 17.0%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $2.3B | $9.01 | — |
| FY2022 | $3.3B | $12.82 | +42.3% |
| FY2023 | $3.6B | $13.89 | +8.3% |
| FY2024 | $-535.6M | $-2.08 | -115.0% |
| FY2025 | $4.0B | $15.32 | — |
4Y Historical EPS CAGR: 14.2%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.