Is West Pharmaceutical Services, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for West Pharmaceutical Services, Inc. moved from very expensive to expensive, indicating a shift in perception regarding its valuation. The company appears to be overvalued, with a P/E ratio of 33, a Price to Book Value of 6.12, and an EV to EBITDA of 21.43, all of which are higher than many of its peers. For instance, Edwards Lifesciences Corp. has a P/E of 31.17 and an EV to EBITDA of 26.51, while Agilent Technologies, Inc. shows a more favorable P/E of 27.42 and an EV to EBITDA of 20.75.
Despite recent short-term performance, where West Pharmaceutical outperformed the S&P 500 with a 1-week return of 3.37% compared to 1.70%, the longer-term outlook is concerning, with a year-to-date return of -17.39% versus the S&P 500's 13.30%. This trend suggests that while the stock may have some short-term momentum, its overall valuation metrics indicate it is not justified at current levels.