WST
West Pharmaceutical Services, Inc. (WST)
Last Price$228.1(1.8%)
Market Cap$16.9B
DCF value
$102.8
Overvalued (DCF value)
(54.9%)
Discount Rate
8.6%
Long-Term Growth Rate
3.0%
Stock quality
6/10
Good

WST DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Dec'20 ActualDec'21 ActualDec'22 ActualDec'23 ActualDec'24 ActualDec'25 EstimateDec'26 EstimateDec'27 EstimateDec'28 EstimateDec'29 EstimateDec'30 EstimateDec'31 EstimateDec'32 EstimateDec'33 EstimateDec'34 EstimateDec'35 Terminal
% growth
2,146.9
16.7%
2,831.6
31.9%
2,886.9
2.0%
2,949.8
2.2%
2,893.2
(1.9%)
3,045.4
5.3%
3,309.4
8.7%
3,502.9
5.8%
3,713.0
6.0%
3,919.8
5.6%
4,121.3
5.1%
4,315.6
4.7%
4,500.5
4.3%
4,674.0
3.9%
4,834.3
3.4%
4,979.3
3.0%
406.9
19.0%
752.3
26.6%
734.0
25.4%
676.0
22.9%
569.9
19.7%
692.0
22.7%
751.9
22.7%
795.9
22.7%
843.6
22.7%
890.6
22.7%
936.4
22.7%
980.6
22.7%
1,022.6
22.7%
1,062.0
22.7%
1,098.4
22.7%
1,131.4
22.7%
NOPAT
% effective tax rate
333.4
15.5%
644.6
22.8%
610.2
21.1%
557.6
18.9%
465.3
16.1%
564.9
18.5%
613.9
18.5%
649.8
18.5%
688.8
18.5%
727.1
18.5%
764.5
18.5%
800.5
18.5%
834.8
18.5%
867.0
18.5%
896.7
18.5%
923.6
18.5%
% of revenue
109.1
5.1%
122.3
4.3%
120.6
4.2%
137.3
4.7%
155.4
5.4%
144.2
4.7%
156.7
4.7%
165.8
4.7%
175.8
4.7%
185.6
4.7%
195.1
4.7%
204.3
4.7%
213.1
4.7%
221.3
4.7%
228.9
4.7%
235.7
4.7%
% of revenue
(174.4)
(8.1%)
(253.4)
(8.9%)
(284.6)
(9.9%)
(362.0)
(12.3%)
(377.0)
(13.0%)
(356.9)
(11.7%)
(387.9)
(11.7%)
(410.6)
(11.7%)
(435.2)
(11.7%)
(459.4)
(11.7%)
(483.0)
(11.7%)
(505.8)
(11.7%)
(527.5)
(11.7%)
(547.8)
(11.7%)
(566.6)
(11.7%)
(583.6)
(11.7%)
(10.3)
(0.5%)
(193.8)
(6.8%)
(11.5)
(0.4%)
(20.4)
(0.7%)
2.9
0.1%
(10.0)
(0.3%)
(10.9)
(0.3%)
(11.6)
(0.3%)
(12.2)
(0.3%)
(12.9)
(0.3%)
(13.6)
(0.3%)
(14.2)
(0.3%)
(14.8)
(0.3%)
(15.4)
(0.3%)
(15.9)
(0.3%)
(16.4)
(0.3%)
Free Cash Flow to Firm (FCFF)
% of revenue
257.8
12.0%
319.7
11.3%
434.7
15.1%
312.5
10.6%
246.6
8.5%
342.1
11.2%
371.8
11.2%
393.5
11.2%
417.1
11.2%
440.3
11.2%
463.0
11.2%
484.8
11.2%
505.6
11.2%
525.1
11.2%
543.1
11.2%
559.4
11.2%
% of FCFF used in calculation
83.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
9.50
Discount factor
0.96
0.88
0.81
0.75
0.69
0.63
0.58
0.54
0.50
0.46
Discounted FCFF (DFCFF)
272.5
328.4
320.1
312.3
303.6
293.9
283.3
272.0
260.1
247.7

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WST DCF Value

DCF Value Calculation

as of Mar 03, 2025
Sum of DFCFF
% share of EV
2,893.9M
38.9%
Terminal Value (TV)
9,960.2M
Discounted TV
% share of EV
4,542.3M
61.1%
Total Debt
302.3M
7,618.4M
Shares outstanding
74.1M
FX rate
1.0
54.9% overvalued

Equity Value Bridge

WST DCF Financials

Revenue
$2,893.2M -> $4,834.3M 5.3% CAGR
Operating Income
$569.9M -> $1,098.4M 6.8% CAGR
FCFF
$246.6M -> $543.1M 8.2% CAGR

WST DCF sensitivity

DCF value
Long-term Terminal growth rate
2.0%
2.5%
3.0%
3.5%
4.0%
WACC
8.0%
$103.0
$109.0
$115.0
$123.0
$133.0
8.5%
$95.0
$100.0
$105.0
$111.0
$119.0
8.6%
$94.0
$98.0
$103.0
$109.0
$116.0
9.5%
$82.0
$86.0
$89.0
$93.0
$98.0
10.0%
$77.0
$80.0
$83.0
$86.0
$90.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
2.0%
2.5%
3.0%
3.5%
4.0%
WACC
8.0%
(55.0%)
(52.0%)
(50.0%)
(46.0%)
(42.0%)
8.5%
(58.0%)
(56.0%)
(54.0%)
(51.0%)
(48.0%)
8.6%
(59.0%)
(57.0%)
(55.0%)
(52.0%)
(49.0%)
9.5%
(64.0%)
(62.0%)
(61.0%)
(59.0%)
(57.0%)
10.0%
(66.0%)
(65.0%)
(64.0%)
(62.0%)
(61.0%)

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FAQ

What is West Pharmaceutical Services, Inc. DCF (discounted cash flow) valuation?

As of Mar 03, 2025, West Pharmaceutical Services, Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at $102.8. This suggests it may be overvalued by (54.9%) compared to its current price of around $228.1, using a WACC of 8.6% and growth rates of 3.0%.

What is West Pharmaceutical Services, Inc. WACC?

As of Mar 03, 2025, West Pharmaceutical Services, Inc.'s Weighted Average Cost of Capital (WACC) is approximately 8.6%.

What is West Pharmaceutical Services, Inc. Enterprise Value?

As of Mar 03, 2025, West Pharmaceutical Services, Inc.'s Enterprise Value (EV) is approximately $7,436.1M. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.