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 valuation outlook. 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, peers such as Edwards Lifesciences Corp. have a P/E of 31.17 and Agilent Technologies, Inc. shows a more attractive P/E of 27.42, suggesting that West Pharmaceutical's valuation is not justified relative to its industry counterparts.
While West Pharmaceutical has outperformed the S&P 500 over the past week and month, with returns of 3.37% and 5.44% respectively, it has significantly lagged over longer periods, with a year-to-date return of -17.39% compared to the S&P 500's 13.30%. This disparity reinforces the notion that the stock may be overvalued given its recent performance trends and relative valuation metrics.