Latest Ratios: P/E Ratio 52.6x · EV/EBITDA 34.2x · ROE 16.9%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $25.8B | $20.0B | $24.1B | $26.5B | $17.8B | $35.8B | $21.5B | $11.3B | $7.4B | $7.5B | $6.4B |
| Enterprise Value | $25.4B | $19.6B | $24.0B | $26.0B | $17.3B | $35.3B | $21.2B | $11.2B | $7.3B | $7.4B | $6.4B |
| P/E Ratio → | 52.59 | 40.46 | 48.96 | 44.69 | 30.45 | 54.10 | 61.99 | 46.83 | 35.78 | 49.58 | 44.41 |
| P/S Ratio | 8.39 | 6.51 | 8.35 | 8.98 | 6.18 | 12.64 | 10.00 | 6.15 | 4.30 | 4.67 | 4.22 |
| P/B Ratio | 8.19 | 6.30 | 9.00 | 9.20 | 6.64 | 15.32 | 11.58 | 7.20 | 5.29 | 5.84 | 5.69 |
| P/FCF | 54.98 | 42.66 | 87.34 | 63.97 | 40.60 | 108.24 | 72.04 | 47.07 | 40.19 | 56.45 | 129.31 |
| P/OCF | 34.15 | 26.50 | 36.95 | 34.15 | 24.64 | 61.28 | 45.45 | 30.87 | 25.61 | 28.41 | 29.00 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.39 | 8.28 | 8.80 | 5.98 | 12.49 | 9.87 | 6.09 | 4.22 | 4.65 | 4.23 |
| EV / EBITDA | 34.25 | 26.46 | 31.95 | 30.62 | 19.53 | 40.12 | 40.12 | 28.02 | 20.18 | 22.79 | 20.86 |
| EV / EBIT | 41.15 | 32.76 | 40.72 | 36.74 | 25.11 | 46.67 | 51.70 | 37.44 | 29.14 | 32.42 | 32.56 |
| EV / FCF | — | 41.86 | 86.69 | 62.65 | 39.29 | 106.92 | 71.07 | 46.62 | 39.42 | 56.15 | 129.83 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 35.9% | 35.9% | 34.6% | 38.4% | 39.5% | 41.5% | 35.8% | 33.0% | 31.8% | 32.2% | 33.2% |
| Operating Margin | 20.1% | 20.1% | 20.6% | 24.1% | 26.5% | 26.8% | 19.5% | 16.1% | 14.8% | 14.4% | 14.3% |
| Net Profit Margin | 16.1% | 16.1% | 17.0% | 20.1% | 20.3% | 23.4% | 16.1% | 13.1% | 12.0% | 9.4% | 9.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 16.9% | 16.9% | 17.7% | 21.3% | 23.3% | 31.6% | 20.2% | 16.3% | 15.5% | 12.6% | 13.4% |
| ROA | 12.5% | 12.5% | 13.2% | 15.9% | 16.9% | 21.7% | 13.5% | 12.3% | 12.0% | 8.4% | 8.4% |
| ROIC | 17.5% | 17.5% | 18.4% | 24.0% | 28.6% | 32.9% | 20.8% | 16.4% | 15.3% | 14.5% | 14.8% |
| ROCE | 18.4% | 18.4% | 19.0% | 22.7% | 26.2% | 30.3% | 19.5% | 18.0% | 17.6% | 15.0% | 15.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.13 | 0.13 | 0.11 | 0.11 | 0.12 | 0.14 | 0.18 | 0.21 | 0.14 | 0.15 | 0.20 |
| Debt / EBITDA | 0.56 | 0.56 | 0.41 | 0.36 | 0.36 | 0.37 | 0.62 | 0.82 | 0.55 | 0.60 | 0.75 |
| Net Debt / Equity | — | -0.12 | -0.07 | -0.19 | -0.21 | -0.19 | -0.16 | -0.07 | -0.10 | -0.03 | 0.02 |
| Net Debt / EBITDA | -0.50 | -0.50 | -0.24 | -0.64 | -0.65 | -0.50 | -0.55 | -0.27 | -0.39 | -0.12 | 0.08 |
| Debt / FCF | — | -0.80 | -0.65 | -1.31 | -1.31 | -1.32 | -0.97 | -0.46 | -0.77 | -0.29 | 0.52 |
| Interest Coverage | 998.67 | 998.67 | 202.90 | 80.32 | 90.46 | 89.11 | 48.21 | 37.48 | 30.72 | 32.32 | 30.66 |
Net cash position: cash ($791M) exceeds total debt ($417M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.02 | 3.02 | 2.79 | 2.88 | 3.70 | 2.93 | 2.73 | 3.10 | 3.15 | 2.66 | 2.66 |
| Quick Ratio | 2.34 | 2.34 | 2.11 | 2.24 | 2.90 | 2.30 | 2.09 | 2.41 | 2.40 | 1.89 | 1.84 |
| Cash Ratio | 1.21 | 1.21 | 0.88 | 1.27 | 1.72 | 1.28 | 1.22 | 1.29 | 1.19 | 0.84 | 0.84 |
| Asset Turnover | — | 0.72 | 0.79 | 0.77 | 0.80 | 0.85 | 0.77 | 0.79 | 1.08 | 0.86 | 0.88 |
| Inventory Turnover | 4.44 | 4.44 | 5.01 | 4.18 | 4.21 | 4.38 | 4.29 | 5.24 | 5.46 | 5.04 | 5.06 |
| Days Sales Outstanding | — | 68.21 | 69.71 | 63.33 | 64.18 | 63.05 | 65.51 | 63.22 | 61.23 | 57.75 | 48.49 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.2% | 0.3% | 0.2% | 0.2% | 0.3% | 0.1% | 0.2% | 0.4% | 0.6% | 0.5% | 0.6% |
| Payout Ratio | 12.4% | 12.4% | 12.0% | 9.6% | 9.2% | 7.7% | 13.9% | 18.7% | 20.3% | 25.9% | 24.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.9% | 2.5% | 2.0% | 2.2% | 3.3% | 1.8% | 1.6% | 2.1% | 2.8% | 2.0% | 2.3% |
| FCF Yield | 1.8% | 2.3% | 1.1% | 1.6% | 2.5% | 0.9% | 1.4% | 2.1% | 2.5% | 1.8% | 0.8% |
| Buyback Yield | 0.5% | 0.7% | 2.3% | 1.7% | 1.2% | 0.4% | 0.6% | 0.8% | 1.0% | 1.0% | 0.9% |
| Total Shareholder Yield | 0.8% | 1.0% | 2.6% | 1.9% | 1.5% | 0.6% | 0.8% | 1.2% | 1.5% | 1.5% | 1.4% |
| Shares Outstanding | — | $73M | $74M | $75M | $76M | $76M | $76M | $75M | $75M | $76M | $75M |
High valuation multiple compression
According to current market data, WST trades at a forward P/E of 40.74, which suggests that investors are pricing in significant long-term growth from the biologic and GLP-1 drug markets, despite the company's PEG ratio of 6.24 indicating a substantial premium relative to near-term earnings expansion.
The current valuation appears to command a 'biologic premium' that differentiates WST from traditional industrial packaging peers. Investors should monitor whether this multiple is sustainable if the pace of new drug approvals or the inventory normalization cycle at major pharmaceutical clients deviates from current market expectations.
Based on reported figures, WST's ROIC has fluctuated between 3.8% and 5.5% over the last ten quarters, a trend that appears to reflect the significant drag from recent, large-scale capital expenditures in manufacturing capacity that have yet to reach full utilization levels across the global network.
The compression in return on capital suggests that the company is currently in a heavy investment phase rather than a harvesting phase. Analysts should evaluate whether these returns will inflect upward as the new capacity for high-value products (HVP) becomes fully integrated and operational.
As reported in financial statements, the company's cash conversion cycle has remained relatively consistent, hovering near 100 days, which indicates that management maintains a disciplined approach to managing inventory and receivables despite the complexities of a global, high-precision manufacturing supply chain.
The stability in the cash conversion cycle suggests that WST is effectively managing its supplier and customer leverage. However, the persistent inventory days, which reached 81 days in 2025Q4, warrant further investigation to determine if this reflects strategic safety stocking or a temporary slowdown in end-market demand.
Based on recent SEC filings, WST maintains a debt-to-equity ratio of 0.11, a figure that highlights a highly conservative capital structure that provides the company with significant insulation against interest rate volatility and the financial flexibility to fund ongoing capital projects without relying on external debt markets.
This minimal leverage profile is a structural advantage in the current interest rate environment, allowing the company to prioritize internal investment and shareholder returns. The lack of significant debt service obligations suggests that the company is well-positioned to navigate potential macroeconomic headwinds without compromising its operational focus.
According to institutional analysis, the P/E ratio is frequently misapplied to WST because it fails to account for the non-cash depreciation charges resulting from the company's aggressive, multi-year capital investment cycle, which artificially suppresses reported earnings and makes the stock appear more expensive than its cash-generating capacity suggests.
Investors should instead focus on EV/EBITDA or P/FCF to better capture the underlying earning power of the business, as these metrics normalize for the heavy capital intensity required to maintain the company's regulatory 'lock-in' moat. Relying solely on P/E may lead to an inaccurate assessment of the company's true valuation relative to its long-term growth potential.
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Quick answers to the most common questions about buying WST stock.
West Pharmaceutical Services, Inc.'s current P/E ratio is 52.6x. The historical average is 32.8x. This places it at the 89th percentile of its historical range.
West Pharmaceutical Services, Inc.'s current EV/EBITDA is 34.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.8x.
West Pharmaceutical Services, Inc.'s return on equity (ROE) is 16.9%. The historical average is 13.7%.
Based on historical data, West Pharmaceutical Services, Inc. is trading at a P/E of 52.6x. This is at the 89th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
West Pharmaceutical Services, Inc.'s current dividend yield is 0.24% with a payout ratio of 12.4%.
West Pharmaceutical Services, Inc. has 35.9% gross margin and 20.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
West Pharmaceutical Services, Inc.'s Debt/EBITDA ratio is 0.6x, indicating low leverage. A ratio below 2x is generally considered financially healthy.