Is West Pharmaceutical Services, Inc. overvalued or undervalued?

As of 10 October 2025, the valuation grade for West Pharmaceutical Services, Inc. has moved from fair to expensive, indicating that the stock is overvalued. The company's P/E ratio stands at 33, which is higher than the peer average of 35.84 for similar companies, while its EV to EBITDA ratio is 21.43, also above the industry average. Additionally, the Price to Book Value ratio is 6.12, suggesting a premium valuation compared to its book value.
In comparison to its peers, Edwards Lifesciences Corp. has a P/E of 31.17, and Agilent Technologies, Inc. has a P/E of 27.42, both indicating that West Pharmaceutical is trading at a higher valuation. Over the past year, the stock has returned -9.76%, significantly underperforming the S&P 500, which returned 13.36%, reinforcing the notion that the stock may be overvalued in the current market.