QualityDipStocks / Health Care · Medical instruments
West Pharmaceutical Services WST
Not in a dip: trading near its 52-week high.
A quality company trading well above our fair value estimate.
- Fair value est.
- $101.48−75%
- Market Value
- forming
- Off 52-wk high
- −1%
- Risk vs market
- Lowbeta 0.61
5 bullish · 5 bearish See why
Key levels
Every level vs today’s $412.62
- Fair value est.base case$101.48−75.4%
- 52-wk lowlowest close, 1 year$230.95−44.0%
- PriceFri Oct 30 close$412.62you are here
- 52-wk highhighest close, 1 year$416.67+1.0%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 3.0% ±2 points. Bear = 10.5% and 1.0%; bull = 8.5% and 5.0% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price is above even the bull case.
What the price implies To be worth today’s price, WST’s free cash flow would need to grow about 29% a year for five years; our estimate uses 3%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much WST moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves much less than the market, but its own price swings are 2.4× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.61
- Volatility
- 31% vs 13% SPY
- Correlation SPY
- 0.25
- Correlation QQQ
- 0.18
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
ProfitabilityReturn on invested capital of 23%, above the 9.5% discount rate our DCF uses.
Cash returnsShare count down 2.5% in a year: $685M of buybacks over 12 months.
ProfitabilityReturn on equity of 21% over the last 12 months.
GrowthSales grew 13% to $3.4B over the last 12 months vs the 12 months before (SEC filings).
QualityPasses all four of our quality checks: cash generation, returns on capital, growth and balance sheet.
Top bearish points 5 of 5
ValuationOur DCF fair value estimate is $101.48, 75% below the price.
ProfitabilityOperating margin narrowed to 19.0% in FY2025 from 22.9% in FY2023 (SEC filings).
ValuationPrice / free cash flow of 64×: a rich price for the cash it generates today.
ValuationP/E of 45.7× vs a 29.2× median for the 86 Health Care companies we cover.
ProfitabilityReturn on equity fell 5 points in two fiscal years, to 16% in FY2025.
Who’s talking about it
Notable investors, executives, analysts and public figures on West Pharmaceutical Services in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Medical instruments
All fundamentals
P/E 45.7 · FCF yield 1.6% · ROE 21%
Valuation
- P/E
- 45.7×3-yr-end avg 44.7× · Health Care median 29.2×
- Price / FCF
- 64.4×
- FCF yield
- 1.6%
- EV / EBITDA
- 30.0×
- Price / sales
- 8.60×
- Price / book
- 9.84×
- Market cap
- $29.2Bprice × diluted shares
- Enterprise value
- $29.0B
Growth
- Revenue, 12 months
- $3.4B
- Sales growth, 12 months
- +12.6%vs the 12 months before
- Sales growth, 3 yrs
- +2.1%/yrfrom FY2022
- Diluted EPS, 12 months
- $8.91
- EPS growth, last FY
- +1.5%
- Net income, 12 months
- $639M
- Net income growth
- +30%12 months vs before
Profitability
- Gross margin
- 37.6%
- Operating margin
- 23.0%
- Net margin
- 18.8%
- FCF margin
- 13.3%
- Return on equity
- 21%
- Return on invested capital
- 23%
Balance sheet
- Cash & short-term inv.
- $464M
- Total debt
- $203M
- Net cash
- $261M
- Debt / equity
- 0.07×
- Interest coverage
- 96.3×operating income / interest
Cash flow & returns
- Free cash flow, 12 months
- $453M
- FCF growth, 12 months
- +20%
- Dividend yield
- 0.21%$63M paid
- Payout ratio
- 10%
- Buybacks, 12 months
- $685M2.3% of market cap
- Share count, 1 year
- −2.5%diluted shares vs a year ago
- Stock-based comp
- $28M
Trailing 12 months to Sep 30, 2026; balance sheet at Sep 30, 2026. From West Pharmaceutical Services’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $101.48 · FCF value $158.43
Assumes 3.0% growth for 5 years (revenue grew 2.1% a year FY22–FY25; floored at 3%), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $6.40 a share (trailing 12 months to Sep 30, 2026), from the 10-Q filed Oct 29, 2026. Net cash $261M, not added.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only arm once a company is in a dip.
Momentum & 52-week range
RSI 75 · 5 days +5.2%
The business
FCF $0.5B · Sales +9%
- Free cash flow, 12 months$0.5B
- Free-cash-flow yield1.5%
- Free-cash-flow margin13%
- Gross margin38%
- Operating margin22%
- Return on invested capital19%
- Return on equity21%
- Sales growth (latest quarter vs year-ago quarter)+9%
- Net debt / EBITDA−0.2×
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
Get a text when WST fires a reversal signal
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