WST

West Pharmaceutical Services, IHealthcare / Medical Instruments & SuppliesINTACT

West Pharmaceutical Services, Inc. designs, manufactures, and sells containment and delivery systems for injectable drugs and healthcare products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Proprietary Products and Contract-Manufactured Products. The Proprietary Products segment offers stoppers and seals for injectable packaging systems; syringe and cartridge components, including custom solutions for the needs of injectable drug applications, as well as administration systems that enhance the safe delivery of drugs through advanced reconstitution, mixing, and transfer technologies; and films, coatings, washing, and vision inspection and sterilization processes and services to enhance the quality of packaging products. This segment also provides drug containment solutions in the form of vials, syringes, and cartridges; and self-injection devices; and a range of integrated solutions, including analytical lab services, pre-approval primary packaging support and engineering development, regulatory expertise, and after-sales technical support. This segment serves biologic, generic, and pharmaceutical drug companies. The Contract-Manufactured Products segment is involved in the design, manufacture, and automated assembly of devices used in surgical, diagnostic, ophthalmic, injectable, and other drug delivery systems, as well as consumer products. This segment primarily serves pharmaceutical, diagnostic, and medical device companies. It sells and distributes its products through its sales force and distribution network, contract sales agents, and regional distributors. West Pharmaceutical Services, Inc. was founded in 1923 and is headquartered in Exton, Pennsylvania.

Share Price
$349.54
52W: $223.83 - $386
DCF Fair Value
$97.96
-256.8% Premium
P/E (TTM)
44.8x
ROIC
16.9%
Operating Margin
22.5%
FCF Yield
1.1%
Debt / Equity
0.11x
Piotroski Score
8/9
Altman Z-Score
3.07
Market Cap
$24.6B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($97.96)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$97.96
MOS Buy Target (-25%)
$73.47
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$349.54
DCF Fair Value
$98.34
-255.4% Premium
$278M
$100M$278M (Reported)$50,000M
11.3%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
-$100M (Net Cash)
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$2.8B
PV of Terminal Value
$3.9B
Implied Enterprise Value
$6.8B
Implied Equity Value
$6.9B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$309$344$383$427$475$496$519$542$566$592
Present Value (PV)$284$290$296$302$309$296$284$272$261$250

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-304.6% Premium
$86.39

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $7.81BVPS: $42.47
Revised Graham Formula-92.2% Premium
$181.84

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings1.1% Yield
$3.77 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $0.3BYield: 1.1%

Reverse DCF: Market Growth Expectation

SPECULATIVE BARRIER
25.5% CAGR (Next 10 Yrs)

At the current price of $349.54, the market is assuming the business will compound Free Cash Flow at 25.5% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
⚠ High expectations: Leaves minimal margin of safety for operational hiccups.
Autonomous Thesis Underwriting

Surveil WST with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for West Pharmaceutical Services, I. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 22.5% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: West Pharmaceutical Services, I (WST) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for West Pharmaceutical Services, I.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, West Pharmaceutical Services, I has an estimated DCF intrinsic fair value of $97.96 per share compared to its current market price of $349.54. This represents an estimated 256.8% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $86.39.

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