PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, West Pharmaceutical Services's PE Ratio without NRI is 48.27. West Pharmaceutical Services's 5-Year EBITDA growth rate is 22.00%. Therefore, West Pharmaceutical Services's PEG Ratio for today is 2.19.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for West Pharmaceutical Services's PEG Ratio or its related term are showing as below:
WST'
s PEG Ratio Range Over the Past 10 Years
Min: 0.92 Med: 3.7 Max: 8.85
Current: 2.19
During the past 13 years, West Pharmaceutical Services's highest PEG Ratio was 8.85. The lowest was 0.92. And the median was 3.70.
WST's PEG Ratio is ranked worse than 56.75% of 252
companies
in the Medical Devices & Instruments industry
Industry Median: 1.73
vs WST: 2.19
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
West Pharmaceutical Services PEG Ratio Historical Data
The historical data trend for West Pharmaceutical Services's PEG Ratio 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.
For the Medical Instruments & Supplies subindustry, West Pharmaceutical Services's PEG Ratio, along with its competitors' market caps and PEG Ratio 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 PEG Ratio Distribution
For the Medical Devices & Instruments industry and Healthcare sector, West Pharmaceutical Services's PEG Ratio distribution charts can be found below:
* The bar in red indicates where West Pharmaceutical Services's PEG Ratio falls into.
West Pharmaceutical Services PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year EBITDA growth rate.
West Pharmaceutical Services's PEG Ratio for today is calculated as
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
West Pharmaceutical Services (NYSE:WST) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
West Pharmaceutical Services PEG Ratio Related Terms
Thank you for viewing the detailed overview of West Pharmaceutical Services's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
West Pharmaceutical Services (West Pharmaceutical Services) Business Description
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.
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