Is West Pharmaceutical Services, Inc. (WST) Undervalued?
Based on the current stock price of $274.30 and a P/E ratio of 40.64,West Pharmaceutical Services, Inc. has a PEG ratio of 7.73.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 7.73, WST appears to be potentially overvalued relative to its growth rate of 5.26%.
Based on a PEG ratio of 7.28 (adjusted for dividends).
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How we analyzed WST
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 40.64and dividing it by the annual growth rate of 5.26%.
PEG = 40.64 (P/E) ÷ 5.26 (Growth) = 7.73
Frequently Asked Questions about WST
What is the current PEG Ratio for West Pharmaceutical Services, Inc. (WST)?+
The current PEG Ratio for West Pharmaceutical Services, Inc. is 7.73. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is WST stock undervalued right now?+
Based on the PEG ratio of 7.73, West Pharmaceutical Services, Inc. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for WST?+
The PEGY ratio for West Pharmaceutical Services, Inc. is 7.28. This metric accounts for dividend yield (0.32%), providing a more complete valuation picture.