West Pharmaceutical Valuation
| WST Stock | USD 378.81 1.19 0.31% |
At this time, the company appears to be fairly valued. West Pharmaceutical maintains a prevalent Real Value of $378.29 per share. The last-minute price of the company is $378.81. Our model calculates the value of West Pharmaceutical from examining the company fundamentals such as Return On Asset of 0.12, profit margin of 0.20 %, and Current Valuation of 27.22 B as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors encourage acquiring undervalued securities and selling overvalued securities since, at some point, asset prices and their ongoing real values will grow together. Key fundamental drivers impacting West Pharmaceutical's valuation include:
Price Book 9.6557 | Enterprise Value 27.2 B | Enterprise Value Ebitda 32.3027 | Price Sales 9.4305 | Forward PE 49.7512 |
Fairly Valued
Today
Please note that West Pharmaceutical's price fluctuation is very steady at this time. Calculation of the real value of West Pharmaceutical is based on 3 months time horizon. Increasing West Pharmaceutical's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for West Pharmaceutical Services is useful when determining the fair value of the West stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of West Pharmaceutical. Since West Pharmaceutical is currently traded on the exchange, buyers and sellers on that exchange determine the market value of West Stock. However, West Pharmaceutical's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 378.81 | Real 378.29 | Target 400.71 | Hype 378.81 |
The real value of West Stock, also known as its intrinsic value, is the underlying worth of West Pharmaceutical Company, which is reflected in its stock price. It is based on West Pharmaceutical's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of West Pharmaceutical's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence West Pharmaceutical's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of West Pharmaceutical Services helps investors to forecast how West stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of West Pharmaceutical more accurately as focusing exclusively on West Pharmaceutical's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use West Pharmaceutical's intrinsic value based on its ongoing forecasts of West Pharmaceutical's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against West Pharmaceutical's closest peers. When choosing an evaluation method for West Pharmaceutical, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
West Pharmaceutical Investments |
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West Valuation Trend
Knowing West Pharmaceutical's actual value is paramount for traders to make sound investment determinations. West Pharmaceutical's real value is not only important for the investor to make better decisions but also for a more accurate overall view of West Pharmaceutical's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both West Pharmaceutical's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
West Market Cap
West Pharmaceutical Services is rated first in market capitalization category among related companies. Market capitalization of Health Care industry is at this time estimated at about 48.68 Billion. West Pharmaceutical totals roughly 27.73 Billion in market capitalization claiming about 57% of equities under Health Care industry.West Pharmaceutical Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining West Pharmaceutical's current stock value. Our valuation model uses many indicators to compare West Pharmaceutical value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across West Pharmaceutical competition to find correlations between indicators driving West Pharmaceutical's intrinsic value. More Info.West Pharmaceutical Services is rated first in price to earning category among related companies. It is rated second in price to book category among related companies fabricating about 0.24 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for West Pharmaceutical Services is roughly 4.22 . Price To Book Ratio is likely to gain to 9.54 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value West Pharmaceutical by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for West Pharmaceutical's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the West Pharmaceutical's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates West Pharmaceutical's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in West Pharmaceutical and how it compares across the competition.
About West Pharmaceutical Valuation
The stock valuation mechanism determines the current worth of West Pharmaceutical Services on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of West Pharmaceutical Services. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of West Pharmaceutical based exclusively on its fundamental and basic technical indicators. By analyzing West Pharmaceutical's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of West Pharmaceutical's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of West Pharmaceutical. We calculate exposure to West Pharmaceutical's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to West Pharmaceutical's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.1 B | 1.2 B | |
| Pretax Profit Margin | 0.24 | 0.25 | |
| Operating Profit Margin | 0.23 | 0.24 | |
| Net Profit Margin | 0.20 | 0.21 | |
| Gross Profit Margin | 0.38 | 0.26 |
West Pharmaceutical Quarterly Retained Earnings |
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8 Steps to conduct West Pharmaceutical's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates West Pharmaceutical's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct West Pharmaceutical's valuation analysis, follow these 8 steps:- Gather financial information: Obtain West Pharmaceutical's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine West Pharmaceutical's revenue streams: Identify West Pharmaceutical's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research West Pharmaceutical's industry and market trends, including the size of the market, growth rate, and competition.
- Establish West Pharmaceutical's growth potential: Evaluate West Pharmaceutical's management, business model, and growth potential.
- Determine West Pharmaceutical's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate West Pharmaceutical's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of West Pharmaceutical represents a small ownership stake in the entity. As a stockholder of West, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
West Pharmaceutical Dividends Analysis For Valuation
Dividends Paid is likely to gain to about (54.1 M) in 2024. Dividend Yield is likely to drop to 0 in 2024. At this time, West Pharmaceutical's Retained Earnings are comparatively stable compared to the past year. Retained Earnings Total Equity is likely to gain to about 3.6 B in 2024, whereas Earnings Yield is likely to drop 0.02 in 2024.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -57 M | -54.1 M | |
| Dividend Yield | 0 | 0 | |
| Dividend Payout Ratio | 0.1 | 0.09 | |
| Dividend Paid And Capex Coverage Ratio | (2.55) | (2.67) |
There are various types of dividends West Pharmaceutical can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of West shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from West Pharmaceutical Services directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When West pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of West Pharmaceutical by the value of the dividends paid out.
West Pharmaceutical Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as West Pharmaceutical does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 75.3 M | |
| Quarterly Earnings Growth Y O Y | 0.334 | |
| Forward Price Earnings | 49.7512 |
West Pharmaceutical Current Valuation Indicators
Valuation refers to the process of determining the present value of West Pharmaceutical Services and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value West we look at many different elements of the entity such as West's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. West Pharmaceutical's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final West Pharmaceutical's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as West Pharmaceutical, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use West Pharmaceutical's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes West Pharmaceutical's worth.When determining whether West Pharmaceutical is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if West Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about West Pharmaceutical Services Stock. Highlighted below are key reports to facilitate an investment decision about West Pharmaceutical Services Stock: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in West Pharmaceutical Services. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in state. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Complementary Tools for West Stock analysis
When running West Pharmaceutical's price analysis, check to measure West Pharmaceutical's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy West Pharmaceutical is operating at the current time. Most of West Pharmaceutical's value examination focuses on studying past and present price action to predict the probability of West Pharmaceutical's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move West Pharmaceutical's price. Additionally, you may evaluate how the addition of West Pharmaceutical to your portfolios can decrease your overall portfolio volatility.
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Is West Pharmaceutical's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of West Pharmaceutical. If investors know West will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about West Pharmaceutical listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.334 | Dividend Share 0.77 | Earnings Share 7.88 | Revenue Per Share 39.701 | Quarterly Revenue Growth 0.033 |
The market value of West Pharmaceutical is measured differently than its book value, which is the value of West that is recorded on the company's balance sheet. Investors also form their own opinion of West Pharmaceutical's value that differs from its market value or its book value, called intrinsic value, which is West Pharmaceutical's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because West Pharmaceutical's market value can be influenced by many factors that don't directly affect West Pharmaceutical's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between West Pharmaceutical's value and its price as these two are different measures arrived at by different means. Investors typically determine if West Pharmaceutical is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, West Pharmaceutical's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.