West Pharmaceutical Services, Inc. (WST) Stock Analysis
Score BCompounder · Grade A · Bullish
$305.97
$195.66
-36.1%
7/10
A
Compounder
Investment Thesis
Price is above modeled value range. Quality supports holding but not attractive for new positions.
High-quality company trading above modeled fair value. Price above modeled entry range.
For New Investors
Price above modeled value range
For Current Holders
Quantitative score: neutral
Buy if
- Price drops 15-20% (improves asymmetry)
- Bull scenario catalysts materialize
- Market-wide correction creates opportunity
Sell if
- Bear scenario triggers occur
- Quality metrics deteriorate (ROIC declining)
- Better alternatives emerge
Valuation
Fair Value estimate: $195.66 (-36.1%). Overvalued vs fundamentals. (Methods diverge significantly. Conservative estimate shown.)
PEG-Based EPS
$388.80
FCF DCF Model
$117.54
EV/EBITDA
$217.78
Blended Fair Value
$195.66
Confidence
Low
Methods
PEG-Based EPS (conservative), FCF 2-Stage DCF, EV/EBITDA
Quality Analysis
98/120 points
Investable
ROE (3Y Avg)
18.2%
ROIC-WACC Spread
5.7%
D/E Ratio
0.1x
Current Ratio
3.0x
Interest Coverage
1029x
FCF Positive Years
3/3
Quality Flags
- ROIC spread: 5.7pp (got 14/25 pts)
- Leverage: D/E 0.1x (14/15 pts)
Market Sentiment
Wall Street Consensus
$315.00
+3.0% Upside
13 analysts
Range: $295.00 — $340.00
Rating: Buy
Our model is slightly more cautious than Wall Street.
Trend & Technical
Price ($305.97) is 16.3% above SMA 200 ($263.11). Bullish trend confirmed.
Tech Score 78/100 — Strong technical setup. Trend, momentum, and positioning aligned bullish.
Risk & Reward
Asymmetry Ratio
0.51:1
Expected Return
-4.2%
Bull Upside
+11.4%
Bear Downside
-22.4%
Poor asymmetry: 0.51:1 ratio. Risk exceeds potential reward.
Verdict: Unfavorable
Scenario Analysis
Bear
Base
Bull
Buy Zone & Action Plan
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AI Executive Summary
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Technical Analysis
RSI, MACD, moving averages, trend signals, and momentum indicators.
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Frequently Asked Questions
What is the fair value of WST?
Based on our multi-method conviction analysis, the estimated fair value of West Pharmaceutical Services, Inc. (WST) is $195.66. This is calculated by blending PEG-Based EPS (conservative), FCF 2-Stage DCF, EV/EBITDA and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is low.
Is WST a buy, sell, or hold?
WST currently has a HOLD rating with a conviction score of 7/10. Price is above modeled value range. Quality supports holding but not attractive for new positions. Price above modeled value range.
Is WST a high-quality stock?
West Pharmaceutical Services, Inc. has a quality grade of A (98/120 points), rated as Investable. Key metrics include ROE of 18.2%, ROIC-WACC spread of 5.7%, and D/E ratio of 0.1x.
What type of stock is WST?
WST is classified as a "compounder" in our framework. High P/E: 40.9x, Low dividend (reinvesting): 0.3%, Mature growth: 3.1%, Strong ROE: 17.9%, Market-like beta: 1.17
What do Wall Street analysts say about WST?
13 Wall Street analysts have a consensus price target of $315.00 for WST, representing +3.0% upside. Targets range from $295.00 to $340.00. The consensus recommendation is "Buy". Our model is slightly more cautious than Wall Street.
What are the risks of investing in WST?
The risk/reward asymmetry ratio for WST is 0.51:1, rated as Unfavorable. Poor asymmetry: 0.51:1 ratio. Risk exceeds potential reward. The expected return is -4.2%, with bull case upside of +11.4% and bear case downside of -22.4%.
What is the current trend for WST?
WST is in a bullish trend. Price ($305.97) is 16.3% above SMA 200 ($263.11). Bullish trend confirmed. The technical score is 78/100.
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Last updated: May 19, 2026 · Framework version 3.7
This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.