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West Pharmaceutical ServicesWST -0.20%93 Forward Rate of Return (Yacktman) % is 1.61% as of Jun. 2026, which is 88% below its 10-year median of 12.93. GuruFocus rates WST with a GF Score™ of 93/100 and a GF Value™ of $356.63 (Fairly Valued). The stock has 8 warning signs investors should review. Among 378 Medical Devices & Instruments companies, West Pharmaceutical Services ranks worse than 64.29% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. West Pharmaceutical Services's forward rate of return for was 1.61%.
The historical rank and industry rank for West Pharmaceutical Services's Forward Rate of Return (Yacktman) % or its related term are showing as below:
WST'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 1.59 Med: 12.93 Max: 21.69
Current: 1.63
During the past 13 years, West Pharmaceutical Services's highest Forward Rate of Return was 21.69. The lowest was 1.59. And the median was 12.93.
WST's Forward Rate of Return (Yacktman) % is ranked worse than 64.29% of 378
companies
in the Medical Devices & Instruments industry
Industry Median: 7.445
vs WST: 1.63
Unlike the Earnings Yield %, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
West Pharmaceutical Services (NYSE:WST) Forward Rate of Return (Yacktman) % Explanation
Unlike the Earnings Yield, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.
Be Aware
In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.
West Pharmaceutical Services Forward Rate of Return (Yacktman) % Related Terms
West Pharmaceutical Services Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for West Pharmaceutical Services's Forward Rate of Return (Yacktman) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
West Pharmaceutical Services Forward Rate of Return (Yacktman) % Chart
WST vs RMD, COO, SOLV: Forward Rate of Return (Yacktman) % Comparison
For the Medical Instruments & Supplies subindustry, West Pharmaceutical Services's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % 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 Forward Rate of Return (Yacktman) % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, West Pharmaceutical Services's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where West Pharmaceutical Services's Forward Rate of Return (Yacktman) % falls into.
West Pharmaceutical Services Forward Rate of Return (Yacktman) % Calculation
Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):
If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.
The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Forward Rate of Return (Yacktman) % of 1.61% mean?
West Pharmaceutical Services (WST) has a Forward Rate of Return (Yacktman) % of 1.61% as of Jun. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on West Pharmaceutical Services and its competitors. This is 88% below median its historical median of 12.93. Over the past decade, West Pharmaceutical Services' Forward Rate of Return (Yacktman) % has ranged from 1.59 to 21.69. According to the industry distribution chart, West Pharmaceutical Services ranks #243 out of 378 companies in the Medical Devices & Instruments industry, placing it in the top 64.3%.
Is West Pharmaceutical Services' Forward Rate of Return (Yacktman) % too high?
West Pharmaceutical Services' current Forward Rate of Return (Yacktman) % of 1.61% is 88% below median its 10-year median of 12.93. Over the past 10 years, this metric has ranged from a low of 1.59 to a high of 21.69. The Medical Devices & Instruments industry median Forward Rate of Return (Yacktman) % is 7.45. West Pharmaceutical Services' value of 1.61% is 78.4% below this industry median. Based on the distribution chart, West Pharmaceutical Services ranks #243 out of 378 companies in the Medical Devices & Instruments industry, which is below the industry midpoint. Overall, West Pharmaceutical Services has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does West Pharmaceutical Services' Forward Rate of Return (Yacktman) % compare to RMD and COO?
According to the Medical Devices & Instruments industry distribution chart, West Pharmaceutical Services ranks #243 out of 378 companies for Forward Rate of Return (Yacktman) %. This places West Pharmaceutical Services in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 7.45. West Pharmaceutical Services' value of 1.61% is 78.4% below this benchmark. Historically, West Pharmaceutical Services' own Forward Rate of Return (Yacktman) % has ranged from 1.59 to 21.69 over the past decade. While the company's 10-year median is 12.93 vs. the industry median of 7.45, West Pharmaceutical Services has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward Rate of Return (Yacktman) % for a Medical Devices & Instruments company?
The median Forward Rate of Return (Yacktman) % among Medical Devices & Instruments companies is 7.45, based on 378 companies in the industry. Companies in the top quartile (top 25%) have a Forward Rate of Return (Yacktman) % significantly above this median, while those in the bottom quartile fall well below. However, Forward Rate of Return (Yacktman) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. West Pharmaceutical Services's current Forward Rate of Return (Yacktman) % of 1.61% is 78.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward Rate of Return (Yacktman) % mean?
A high Forward Rate of Return (Yacktman) % can signal that a stock is expensive relative to its fundamentals. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on West Pharmaceutical Services and its competitors. For the Medical Devices & Instruments industry, the median Forward Rate of Return (Yacktman) % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. West Pharmaceutical Services's current Forward Rate of Return (Yacktman) % is 1.61%, which is 88% below median its own 10-year median of 12.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is West Pharmaceutical Services stock overvalued right now?
Based on GuruFocus' analysis, West Pharmaceutical Services (WST) is currently considered Fairly Valued. The stock's GF Value™ is $356.63, compared to a current price of $353.08 — trading 1% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 1.61%, which is 88% below median its 10-year median of 12.93 and 78.4% below the Medical Devices & Instruments industry median of 7.45. West Pharmaceutical Services' overall GF Score™ is 93/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward Rate of Return (Yacktman) % calculated?
Forward Rate of Return (Yacktman) % is calculated from a company's financial statements. For West Pharmaceutical Services (WST), the current Forward Rate of Return (Yacktman) % is 1.61% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is West Pharmaceutical Services (WST) Overvalued in 2026?
Based on GuruFocus' analysis, West Pharmaceutical Services stock appears to be undervalued.
The current stock price of $353.08 is trading 1% below its estimated GF Value™ of $356.63.
GuruFocus considers West Pharmaceutical Services to be Fairly Valued.
Key valuation signals for WST:
Forward Rate of Return (Yacktman) %: 1.61% (88% below median its 10-year median of 12.93)
GF Value™: $356.63 vs. price of $353.08 (1% below fair value)
Industry Position: 78.4% below the Medical Devices & Instruments median (#243 of 378)
No single metric tells the full story. See the WST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
West Pharmaceutical Services is based in Pennsylvania and is a key supplier to firms in the pharmaceutical, biotechnology, and generic drug industries. West sells elastomer-based packaging components (including stoppers, seals, and plungers), nonglass containment solutions, and auto-injectors for injectable drugs, which include large-molecule biologics, peptides such as GLP-1 receptor agonists, and small-molecule drugs. The company reports in two segments: proprietary products (about 80% of total revenue) and contract-manufactured products (about 20% of total revenue). It generates approximately 55% of its revenue from international markets and 45% from the United States.
93GF Score
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