Is West Pharmaceutical Services, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for West Pharmaceutical Services, Inc. has moved from very expensive to expensive, indicating a shift towards a less favorable assessment. The company appears to be overvalued based on its current metrics, with a P/E ratio of 33, a Price to Book Value of 6.12, and an EV to EBITDA of 21.43. In comparison to its peers, West Pharmaceutical's P/E ratio is notably higher than that of Agilent Technologies, Inc. at 27.42, which is considered fairly valued, and even exceeds Edwards Lifesciences Corp. at 31.17.
Despite a recent positive stock performance with a 1-week return of 3.37% compared to the S&P 500's 1.70%, the longer-term outlook is concerning, as the company has experienced a year-to-date decline of 17.39% against the S&P 500's gain of 13.30%. This trend reinforces the notion that West Pharmaceutical is currently overvalued relative to its peers and market performance.