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West Pharmaceutical Services (NYSE:WST) GF Value Rank

: 7 (As of Today)
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West Pharmaceutical Services has the GF Value Rank of 7.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison

For the Medical Instruments & Supplies subindustry, West Pharmaceutical Services's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


West Pharmaceutical Services GF Value Rank Distribution

For the Medical Devices & Instruments industry and Healthcare sector, West Pharmaceutical Services's GF Value Rank distribution charts can be found below:

* The bar in red indicates where West Pharmaceutical Services's GF Value Rank falls in comparison to its industry or sector. The grey bar indicates the GF Value Rank's extreme value range as defined by GuruFocus.

West Pharmaceutical Services GF Value Rank Related Terms

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West Pharmaceutical Services (NYSE:WST) Business Description

West Pharmaceutical Services logo
Traded in Other Exchanges
530 Herman O. West Drive, Exton, PA, USA, 19341-0645
West Pharmaceutical Services is a Pennsylvania-based medical supplies company that operates as a key supplier to firms in the pharmaceutical, biotechnology, and generic drug industries. West develops, manufactures, and distributes elastomer-based supplies for the containment and administration of injectable drugs, including basic equipment such as syringes, stoppers, and plungers, along with somewhat more complicated devices including auto-injectors and other self-injection platforms. The company reports in two segments: proprietary products (82% of 2021 sales) and contract-manufactured products (18%). It generates 55% of its revenue from international markets and 45% from the United States.
Charles Witherspoon officer: VP & Treasurer 530 HERMAN O WEST DRIVE, EXTON PA 19341
Cindy Reiss-clark officer: Senior Vice President 530 HERMAN O. WEST DRIVE, EXTON PA 19341-1147
Molly Joseph director 9209 GRAND SUMMIT BLVD, DRIPPING SPRINGS TX 78620
Kimberly Banks Mackay officer: SVP, GC & Corporate Secretary 530 HERMAN O. WEST DRIVE, EXTON PA 19341
Chad Winters officer: VP, CAO & Controller 530 HERMAN O. WEST DRIVE, EXTON PA 19341
Robert F Friel director 940 WINTER STREET, WALTHAM MA 02451
Quintin J Lai officer: VP Corp Development & Strategy 530 HERMAN 0. WEST DRIVE, EXTON PA 19341
Bernard Birkett officer: Sr VP, CFO & Treasurer 1600 WEST MERIT PARKWAY, SOUTH JORDAN UT 84095
Silji Abraham officer: Chief Digital & Trans Officer 5000 TOWN CENTER, U, SOUTHFIELD MI 48075
Deborah L Keller director 530 HERMAN O. WEST DRIVE, EXTON PA 19341
David A Montecalvo officer: SVP, Glob Ops and Supply Chain 530 HERMAN O. WEST DRIVE, EXTON PA 19341
Paolo Pucci director C/O ARQULE, INC., 1 WALL STREET, 6TH FLOOR, BURLINGTON MA 01803
George Lloyd Miller officer: Sr. VP, GC & Corp. Sec. 530 HERMAN O. WEST DRIVE, EXTON PA 19341
Annette F Favorite officer: Sr. VP Human Resources Officer 530 HERMAN O. WEST DRIVE, EXTON PA 19341

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