West Pharmaceutical Services, Inc. (WST): Price and Financial Metrics

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WST Price/Volume Stats

West Pharmaceutical Services, Inc. (WST) Company Bio

West Pharmaceutical Services develops, manufactures, and sells components and systems for the packaging and delivery of injectable drugs, as well as delivery system components for the pharmaceutical, healthcare, and consumer products industries. The company operates through two segments, Pharmaceutical Packaging Systems and Pharmaceutical Delivery Systems. The company was founded in 1923 and is based in Exton, Pennsylvania.

WST Price Forecast Based on DCF Valuation

Below please find a table outlining a discounted cash flow forecast for WST, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that West Pharmaceutical Services Inc ranked in the 23th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for WST, they are:

• The company's debt burden, as measured by earnings divided by interest payments, is 63.88; that's higher than 89.06% of US stocks in the Healthcare sector that have positive free cash flow.
• The business' balance sheet reveals debt to be 1% of the company's capital (with equity being the remaining amount). Approximately just 8.25% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
• WST's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 55.59% of tickers in our DCF set.

For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as WST, try NVST, MD, MTD, HSIC, and ILMN.