West Pharmaceutical Services, Inc.

NYSE:WST Stock Report

Mkt Cap: US$19.7b

We’ve recently updated our valuation analysis.

West Pharmaceutical Services Valuation

Is WST undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WST?

Other financial metrics that can be useful for relative valuation.

WST key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.6x
Enterprise Value/EBITDA22.2x
PEG Ratio3.5x

Price to Earnings Ratio vs Peers

How does WST's PE Ratio compare to its peers?

The above table shows the PE ratio for WST vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average31.1x
PKI PerkinElmer
26.6x11.8%US$17.4b
WAT Waters
28x6.5%US$19.5b
AVTR Avantor
26.9x12.3%US$16.1b
TECH Bio-Techne
42.8x9.4%US$12.5b
WST West Pharmaceutical Services
31.2x8.8%US$19.7b

Price-To-Earnings vs Peers: WST is expensive based on its Price-To-Earnings Ratio (31.2x) compared to the peer average (31.1x).


Price to Earnings Ratio vs Industry

How does WST's PE Ratio compare vs other companies in the US Life Sciences Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.3%
n/an/an/a

Price-To-Earnings vs Industry: WST is expensive based on its Price-To-Earnings Ratio (31.2x) compared to the US Life Sciences industry average (30.1x)


Price to Earnings Ratio vs Fair Ratio

What is WST's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WST PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.2x
Fair PE Ratio20.1x

Price-To-Earnings vs Fair Ratio: WST is expensive based on its Price-To-Earnings Ratio (31.2x) compared to the estimated Fair Price-To-Earnings Ratio (20.1x).


Share Price vs Fair Value

What is the Fair Price of WST when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WST ($265.6) is trading above our estimate of fair value ($136.13)

Significantly Below Fair Value: WST is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst WST forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$265.60
US$286.00
+7.7%
21.6%US$449.00US$240.00n/a9
Jan ’24US$235.35
US$281.11
+19.4%
23.5%US$449.00US$206.00n/a9
Dec ’23US$242.02
US$287.50
+18.8%
25.1%US$449.00US$206.00n/a8
Nov ’23US$229.50
US$292.86
+27.6%
25.8%US$449.00US$206.00n/a7
Oct ’23US$246.08
US$368.43
+49.7%
13.8%US$449.00US$280.00n/a7
Sep ’23US$296.10
US$371.29
+25.4%
14.1%US$449.00US$280.00n/a7
Aug ’23US$339.04
US$371.29
+9.5%
14.1%US$449.00US$280.00n/a7
Jul ’23US$307.74
US$368.50
+19.7%
12.6%US$410.00US$280.00n/a6
Jun ’23US$308.58
US$368.50
+19.4%
12.6%US$410.00US$280.00n/a6
May ’23US$315.06
US$377.67
+19.9%
15.3%US$465.00US$280.00n/a6
Apr ’23US$417.03
US$416.67
-0.09%
16.5%US$475.00US$280.00n/a6
Mar ’23US$381.58
US$416.67
+9.2%
16.5%US$475.00US$280.00n/a6
Feb ’23US$397.24
US$425.00
+7.0%
18.8%US$515.00US$265.00US$265.606
Jan ’23US$469.01
US$425.00
-9.4%
18.8%US$515.00US$265.00US$235.356
Dec ’22US$435.41
US$425.00
-2.4%
18.8%US$515.00US$265.00US$242.026
Nov ’22US$426.74
US$425.00
-0.4%
18.8%US$515.00US$265.00US$229.506
Oct ’22US$419.73
US$402.50
-4.1%
22.0%US$515.00US$235.00US$246.086
Sep ’22US$453.12
US$391.67
-13.6%
19.7%US$475.00US$235.00US$296.106
Aug ’22US$411.73
US$388.33
-5.7%
21.6%US$475.00US$215.00US$339.046
Jul ’22US$363.01
US$328.83
-9.4%
17.6%US$400.00US$215.00US$307.746
Jun ’22US$340.16
US$328.83
-3.3%
17.6%US$400.00US$215.00US$308.586
May ’22US$328.52
US$323.83
-1.4%
17.3%US$400.00US$215.00US$315.066
Apr ’22US$284.77
US$309.17
+8.6%
16.2%US$365.00US$215.00US$417.036
Mar ’22US$282.99
US$305.00
+7.8%
19.0%US$365.00US$190.00US$381.586
Feb ’22US$297.02
US$276.83
-6.8%
22.2%US$350.00US$171.00US$397.246

Analyst Forecast: Target price is less than 20% higher than the current share price.


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