WST Valuation

West Pharmaceutical Services Inc

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244.500

-2.71(-1.096%)1D

Overview
Forecast
Valuation
Earnings

WST Relative Valuation

WST's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, WST is overvalued; if below, it's undervalued.

Historical Valuation

West Pharmaceutical Services Inc (WST) is now in the Fair zone, suggesting that its current forward PE ratio of 35.39 is considered Fairly compared with the five-year average of 43.90. The fair price of West Pharmaceutical Services Inc (WST) is between 229.84 to 321.23 according to relative valuation methord.

Relative Value

Fair Zone

229.84-321.23

Current Price：244.28

Fair

35.06

Trailing

Forward

22.23

EV/EBITDA

West Pharmaceutical Services Inc. (WST) has a current EV/EBITDA of 22.23. The 5-year average EV/EBITDA is 28.68. The thresholds are as follows: Strongly Undervalued below 18.59, Undervalued between 18.59 and 23.64, Fairly Valued between 33.72 and 23.64, Overvalued between 33.72 and 38.77, and Strongly Overvalued above 38.77. The current Forward EV/EBITDA of 22.23 falls within the Undervalued range.

28.68

EV/EBIT

West Pharmaceutical Services Inc. (WST) has a current EV/EBIT of 28.68. The 5-year average EV/EBIT is 34.96. The thresholds are as follows: Strongly Undervalued below 21.80, Undervalued between 21.80 and 28.38, Fairly Valued between 41.54 and 28.38, Overvalued between 41.54 and 48.12, and Strongly Overvalued above 48.12. The current Forward EV/EBIT of 28.68 falls within the Historic Trend Line -Fairly Valued range.

5.65

West Pharmaceutical Services Inc. (WST) has a current PS of 5.65. The 5-year average PS is 8.20. The thresholds are as follows: Strongly Undervalued below 5.11, Undervalued between 5.11 and 6.65, Fairly Valued between 9.74 and 6.65, Overvalued between 9.74 and 11.29, and Strongly Overvalued above 11.29. The current Forward PS of 5.65 falls within the Undervalued range.

28.52

P/OCF

West Pharmaceutical Services Inc. (WST) has a current P/OCF of 28.52. The 5-year average P/OCF is 35.83. The thresholds are as follows: Strongly Undervalued below 22.93, Undervalued between 22.93 and 29.38, Fairly Valued between 42.28 and 29.38, Overvalued between 42.28 and 48.72, and Strongly Overvalued above 48.72. The current Forward P/OCF of 28.52 falls within the Undervalued range.

49.68

P/FCF

West Pharmaceutical Services Inc. (WST) has a current P/FCF of 49.68. The 5-year average P/FCF is 66.43. The thresholds are as follows: Strongly Undervalued below 32.61, Undervalued between 32.61 and 49.52, Fairly Valued between 83.34 and 49.52, Overvalued between 83.34 and 100.25, and Strongly Overvalued above 100.25. The current Forward P/FCF of 49.68 falls within the Historic Trend Line -Fairly Valued range.

West Pharmaceutical Services Inc (WST) has a current Price-to-Book (P/B) ratio of 6.08. Compared to its 3-year average P/B ratio of 8.38 , the current P/B ratio is approximately -27.44% higher. Relative to its 5-year average P/B ratio of 10.06, the current P/B ratio is about -39.55% higher. West Pharmaceutical Services Inc (WST) has a Forward Free Cash Flow (FCF) yield of approximately 1.93%. Compared to its 3-year average FCF yield of 1.69%, the current FCF yield is approximately 14.53% lower. Relative to its 5-year average FCF yield of 1.52% , the current FCF yield is about 26.59% lower.

6.03

P/B

Median3y

8.38

Median5y

10.06

1.94

FCF Yield

Median3y

1.69

Median5y

1.52

Competitors Valuation Multiple

The average P/S ratio for WST's competitors is 4.06, providing a benchmark for relative valuation. West Pharmaceutical Services Inc Corp (WST) exhibits a P/S ratio of 5.65, which is 39.18% above the industry average. Given its robust revenue growth of 9.17%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

WST.N

West Pharmaceutical Services Inc

Zimmer Biomet Holdings Inc

2.50

6.97%

21.30B

Performance Decomposition

Market capitalization of WST decreased by 22.04% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 702.10M to 766.50M.

The secondary factor is the Margin Expansion, contributed 8.52%to the performance.

Overall, the performance of WST in the past 1 year is driven by Revenue Growth. Which is more sustainable.

9.17%

702.10M → 766.50M

Revenue Growth

8.52%

15.85 → 17.20

Margin Expansion

-39.73%

60.94 → 36.73

P/E Change

-22.04%