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STOCK COMPARISON

Royalty Pharma Plc vs Vertex Pharmaceuticals: Fair Value & Quality

Both stocks run through our valuation models. Here is how Royalty Pharma Plc (RPRX) and Vertex Pharmaceuticals (VRTX) compare, as of Sep 5, 2026.

As of Sep 5, 2026, Fair Value Calculator sees Vertex Pharmaceuticals as the less overvalued of the two: Royalty Pharma Plc trades at $63.88 versus a fair value of $24.22 (-62%), while Vertex Pharmaceuticals trades at $558 versus $279 (-50%).
Royalty Pharma Plc
RPRX · USD · Health Care
-62%
upside to fair value
overvalued
Price$63.88
Fair Value$24.22
Quality70/100
Vertex Pharmaceuticals
VRTX · USD · Health Care
-50%
upside to fair value
overvalued
Price$558
Fair Value$279
Quality79/100
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Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

Royalty Pharma PlcVertex Pharmaceuticals
Valuation
30.6×P/E (TTM)28.8×
13.73×P/S (TTM)10.06×
5.17×P/B6.59×
26.5×EV/EBITDA23.8×
2.18×PEG1.72×
−62.1%Fair value upside−50.0%
1.4%Dividend yield0.1%
$0.90Dividend per share—
Profitability
100%Operating margin38%
0.87×EBIT margin trend (5Y)0.86×
14%Return on equity24%
6%Return on assets12%
Growth
11%Revenue growth (YoY)8%
2.1%Avg. growth/yr (3Y)10.6%
2.3%Avg. growth/yr (5Y)14.2%
−17.2%Value creation/yr+13.6%
Balance & size
5.1×Interest coverage (EBIT/interest)357.9×
1.32×Debt / equity0.03×
$34BMarket cap$123B
mixedGrowth qualityhealthy

Vertex Pharmaceuticals leads: 4 to 12 metric wins.

Dash = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Royalty Pharma Plcof which business quality 66 · market factors 91 Vertex Pharmaceuticalsof which business quality 77 · market factors 79
ProfitabilityMargins and returns on capital today
42
72
Quality GrowthAre margins and returns improving?
45
65
CashflowEarnings quality: real cash, not paper profit
100
79
Fin. StrengthBalance sheet, leverage, solvency risk
41
92
InvestmentDisciplined investing over empire-building
83
58
Low VolatilityCalm price path (market factor)
91
85
MomentumPrice trend over the last 3–12 months (market factor)
86
70
52W MomentumDistance to the 52-week high (market factor)
100
89
Net IssuanceBuybacks instead of dilution
93
82

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model familyRoyalty Pharma PlcPrice $63.88Vertex PharmaceuticalsPrice $558
DCF Models-57%below the price$27.15-19%below the price$453
Earnings-Based-87%below the price$8.61-8%close to the price$516
Dividend Discount-89%below the price$7.29-99%below the price$7.07
Multiples-61%below the price$24.90-50%below the price$278
Asset-Based-88%below the price$7.75-91%below the price$49.27
Growth DCF-26%below the price$47.52-38%below the price$348
Economic Profit-86%below the price$9.15-54%below the price$254
Growth Earnings-64%below the price$22.89+24%above the price$692
Minimum-89%below the price$7.29-99%below the price$7.07
Maximum-26%below the price$47.52+24%above the price$692
Median-75%below the price$16.02-44%below the price$313
Geometric mean-76%below the price$15.46-67%below the price$185

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Royalty Pharma Plc: 21 of 21 models see the stock below the current price.

Vertex Pharmaceuticals: 22 of 26 models see the stock below the current price.

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

Royalty Pharma Plc
Bear $15.06Fair Value $24.22Bull $34.00
$63.88 = current price (white tick)
Vertex Pharmaceuticals
Bear $210Fair Value $279Bull $900
$558 = current price (white tick)

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Royalty Pharma Plc · Health Care

Quality score70 · Top 25%
Fair value upside-62% · below median

Vertex Pharmaceuticals · Health Care

Quality score79 · Top 25%
Fair value upside-50% · below median

Bottom line

As of Sep 5, 2026, Fair Value Calculator sees Vertex Pharmaceuticals as the less overvalued of the two: Royalty Pharma Plc trades at $63.88 versus a fair value of $24.22 (-62%), while Vertex Pharmaceuticals trades at $558 versus $279 (-50%).

Vertex Pharmaceuticals has the higher quality score (79/100).

See the full analysis →
Royalty Pharma Plc · Vertex Pharmaceuticals

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.