Latest Ratios: P/E Ratio 44.3x · EV/EBITDA 28.8x · 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 | $28.1B | $20.0B | $24.1B | $26.5B | $17.8B | $35.8B | $21.5B | $11.3B | $7.4B | $7.5B | $6.4B |
| Enterprise Value | $27.8B | $19.6B | $24.0B | $26.0B | $17.3B | $35.3B | $21.2B | $11.2B | $7.3B | $7.4B | $6.4B |
| P/E Ratio → | 44.31 | 40.46 | 48.96 | 44.69 | 30.45 | 54.10 | 61.99 | 46.83 | 35.78 | 49.58 | 44.41 |
| P/S Ratio | 8.28 | 6.51 | 8.35 | 8.98 | 6.18 | 12.64 | 10.00 | 6.15 | 4.30 | 4.67 | 4.22 |
| P/B Ratio | 9.15 | 6.30 | 9.00 | 9.20 | 6.64 | 15.32 | 11.58 | 7.20 | 5.29 | 5.84 | 5.69 |
| P/FCF | 62.06 | 42.66 | 87.34 | 63.97 | 40.60 | 108.24 | 72.04 | 47.07 | 40.19 | 56.45 | 129.31 |
| P/OCF | 37.28 | 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 | 28.80 | 24.88 | 31.95 | 30.62 | 19.53 | 40.12 | 40.12 | 28.02 | 20.18 | 22.79 | 20.86 |
| EV / EBIT | 44.97 | 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 | 0.53 | 0.53 | 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 | -0.47 | -0.47 | -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 | 2.3% | 2.5% | 2.0% | 2.2% | 3.3% | 1.8% | 1.6% | 2.1% | 2.8% | 2.0% | 2.3% |
| FCF Yield | 1.6% | 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 | 0.7% | 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 |
Includes 30+ ratios · 30 years · Updated daily
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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 44.3x. The historical average is 32.8x. This places it at the 68th percentile of its historical range.
West Pharmaceutical Services, Inc.'s current EV/EBITDA is 28.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.7x.
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 44.3x. This is at the 68th 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 0.21% 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 0.5x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Contract roll-off and valuation compression
Metrics are mathematically derived from official filings.
Premium Multiples Price in Sustained Biologics Growth
Based on WST's reported figures, the trailing P/E of 57.72 and EV/EBITDA of 36.73 sit far above AptarGroup's 24.50 P/E and 12.91 EV/EBITDA, implying the market is pricing in durable above-peer growth that must be delivered to justify the premium.
The forward P/E of 42.63 compresses only modestly from trailing, which suggests investors expect earnings to keep climbing rather than normalizing sharply. A PEG of 6.98 is elevated and indicates the current price embeds growth expectations that are difficult to sustain for long, so the multiple appears vulnerable if GLP-1 and biologics volume growth decelerates. Investors should monitor whether forward estimates keep pace with the price.
Mix Shift Lifts Margins to Multi-Year Highs
As reported in the quarterly statements, gross margin widened from 32.9% in 2024Q2 to 39.7% in 2026Q3 while operating margin reached 30.6% and net margin 24.5%, indicating a structural rather than cyclical lift.
The expansion appears driven by the shift toward high-value proprietary components, which carry pricing power that contract manufacturing does not. Operating margin of 30.6% versus 18.6% two years earlier reflects both mix and fixed-cost absorption, though the 2025Q1 trough shows the figures are not monotonic. Margin durability depends on continued HVP mix, and the mid-2026 contract roll-off could partially reverse absorption gains.
Returns Recovering but Still Modest on Equity
Based on WST's reported quarterly data, ROE improved from 4.2% in 2025Q4 to 7.2% in 2026Q3 and ROIC from 4.3% to 7.1%, though both remain low relative to the company's high valuation multiples.
The gap between high margins and modest ROE is largely explained by the very large equity base built from retained earnings, which dilutes return metrics even as profitability improves. ROIC at 7.1% trails AptarGroup's 10.7%, suggesting WST's capital is not yet compounding as efficiently as its margin profile implies. Sustained ROIC above 10% would likely be needed to justify the premium multiple.
Negligible Leverage Limits Refinancing Exposure
According to reported balance sheets, a debt-to-equity ratio near 0.10 and D/EBITDA between 0.97 and 1.80 indicate debt service poses minimal pressure on the business.
With total debt around $305M against roughly $3.0B of equity, the company carries leverage far below typical industrial levels, which appears to reduce refinancing and covenant risk to a low level. Interest coverage data is largely unavailable for recent quarters, so conclusions rest on the balance sheet ratios rather than coverage. Leverage is therefore unlikely to constrain strategic flexibility, though it also means balance sheet capacity is not being used to amplify returns.
Strong Liquidity Buffer Tempers Cash Flow Volatility
Based on WST's reported figures, the current ratio of 2.82 and quick ratio of 2.10 in 2026Q3 provide a substantial short-term cushion against quarterly swings in operating cash flow.
A quick ratio nearly matching the current ratio suggests inventory is a small share of current assets, so liquidity does not appear to depend on inventory conversion. The position would likely hold under moderate stress given the cash balance and limited short-term debt. Investors should still track cash conversion, since the free cash flow margin ranged from 5.6% to 21.7% over the period.
Ratio Most Misapplied: Trailing P/E on a Transitioning Base
Based on WST's reported figures, trailing P/E of 57.72 is the ratio most often misapplied here, since 2025 to 2026 earnings include a mix-driven step-up and a scheduled contract roll-off that the trailing figure does not reflect.
Trailing P/E treats recent margin expansion as recurring, yet the margin lift appears partly tied to HVP mix and fixed-cost absorption that the mid-2026 contract conclusion may reverse. EV/EBITDA and free cash flow yield, adjusted for capex normalization and working capital swings, better capture earning power for a capital-intensive, cash-volatile manufacturer. Investors should weigh normalized free cash flow per share against the trailing multiple before concluding the valuation is excessive or justified.