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DCF Valuation
Base-case fair value
$111.35
Intrinsic $148.46 · 25% MOS
Current price: $323.59
Base-case summary
Our base-case DCF for West Pharmaceutical Services Inc (WST) projects 10 years of free cash flow growth at 6.7% for years 1–5 and 3.4% for years 6–10, anchored to 6.7% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $458M in trailing free cash flow, this produces an intrinsic value of $148.46 per share. A 25% safety margin gives a fair value of $111.35, suggesting the stock is currently 66% overvalued against the $323.59 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$458M
Cash & equivalents
$521M
Total debt
$321M
Shares outstanding
72M