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Vertex Pharmaceuticals is Among the Companies in the Biotechnology Industry With the Highest EV/EBITDA Ratio (VRTX, CYTK, INCY, RGEN, OPK)

By James Quinn

Below are the three companies in the Biotechnology industry with the highest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

Vertex Pharmaceuticals ranks highest with a an EV/EBITDA ratio of 418.02. Cytokinetics is next with a an EV/EBITDA ratio of 166.90. Incyte ranks third highest with a an EV/EBITDA ratio of 113.08.

Repligen follows with a an EV/EBITDA ratio of 64.42, and Opko Health rounds out the top five with a an EV/EBITDA ratio of 55.35.

SmarTrend recommended that subscribers consider buying shares of Vertex Pharmaceuticals on January 6th, 2017 as our technology indicated a new Uptrend was in progress when shares hit $78.63. Since that recommendation, shares of Vertex Pharmaceuticals have risen 56.6%. We continue to monitor Vertex Pharmaceuticals for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest ev/ebitda ratio Vertex Pharmaceuticals cytokinetics Incyte repligen opko health