You might look at Vertex Pharmaceuticals (NASDAQ: VRTX) stock and shake your head at its valuation. After soaring more than 70% so far in 2017, shares of the biotech now trade at a whopping 180 times trailing-12-month earnings. That’s the kind of price tag that would cause Warren Buffett’s mentor Benjamin Graham to spin in his grave.
Should this make you stay away from Vertex? I don’t think so. Here’s why you’re smart to buy the biotech stock even at its seemingly stratospheric valuation.
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