DCF Tool

WST

West Pharmaceutical Services, Inc. – Medical Laboratories
West Pharmaceutical Services, Inc. is a leading provider of innovative, high-quality injectable solutions and services. As a trusted partner to established and emerging drug developers, West helps ensure the safe, effective containment and delivery of life-saving and life-enhancing medicines for patients. With almost 10,000 team members across 50 sites worldwide, West helps support its customers by delivering over 40 billion components and devices each year.
Analysis Results
Intrinsic Value $1,746.07
Latest Price $300.68
Relative Value 83% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 47.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 2.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 47.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 0.975 0.948
2023 1.44 1.36
2024 2.13 1.96
2025 3.15 2.82
2026 4.66 4.05
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 140 billion. This corresponds to a present value of 118 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 11.1 billion. Adding in the terminal value gives a total present value of 129 billion.

There are presently 74.1 million outstanding shares, so the intrinsic value per share is 1746.07.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,742,000,000
Current Cash 762,600,000
Current Liabilities 594,100,000
Current Debt 44,200,000
Non-Cash Working Capital (NCWC) 429,500,000
Change in NCWC 172,400,000
EBIT 781,200,000
Tax Provision 107,200,000
Depreciation and Amortization 122,300,000
Capital Expenditure -253,400,000
Unlevered Free Cash Flow 713,599,297
Current Assets 1,373,700,000
Current Cash 615,500,000
Current Liabilities 503,400,000
Current Debt 2,300,000
Non-Cash Working Capital (NCWC) 257,100,000
Change in NCWC -23,200,000
EBIT 437,200,000
Tax Provision 72,500,000
Depreciation and Amortization 109,100,000
Capital Expenditure -174,400,000
Unlevered Free Cash Flow 272,996,632
Current Assets 1,058,700,000
Current Cash 439,100,000
Current Liabilities 341,600,000
Current Debt 2,300,000
Non-Cash Working Capital (NCWC) 280,300,000
Change in NCWC 6,900,000
EBIT 303,000,000
Tax Provision 59,000,000
Depreciation and Amortization 103,400,000
Capital Expenditure -126,400,000
Unlevered Free Cash Flow 227,448,719
Current Assets 894,400,000
Current Cash 337,400,000
Current Liabilities 283,700,000
Current Debt 100,000
Non-Cash Working Capital (NCWC) 273,400,000
Change in NCWC 45,300,000
EBIT 249,800,000
Tax Provision 41,400,000
Depreciation and Amortization 104,400,000
Capital Expenditure -104,700,000
Unlevered Free Cash Flow 253,149,899
Current Assets 743,500,000
Current Cash 235,900,000
Current Liabilities 279,500,000
Current Debt 0
Non-Cash Working Capital (NCWC) 228,100,000
Change in NCWC 27,800,000
EBIT 240,100,000
Tax Provision 80,900,000
Depreciation and Amortization 96,700,000
Capital Expenditure -130,800,000
Unlevered Free Cash Flow 149,930,872
Current Assets 641,900,000
Current Cash 203,000,000
Current Liabilities 241,000,000
Current Debt 2,400,000
Non-Cash Working Capital (NCWC) 200,300,000
Change in NCWC 46,200,000
EBIT 232,700,000
Tax Provision 54,400,000
Depreciation and Amortization 90,700,000
Capital Expenditure -170,200,000
Unlevered Free Cash Flow 135,466,262
Current Assets 673,700,000
Current Cash 274,600,000
Current Liabilities 314,300,000
Current Debt 69,300,000
Non-Cash Working Capital (NCWC) 154,100,000
Change in NCWC -24,600,000
EBIT 194,500,000
Tax Provision 26,300,000
Depreciation and Amortization 89,900,000
Capital Expenditure -131,600,000
Unlevered Free Cash Flow 86,236,505
Current Assets 659,300,000
Current Cash 255,300,000
Current Liabilities 252,500,000
Current Debt 27,200,000
Non-Cash Working Capital (NCWC) 178,700,000
Change in NCWC 200,000
EBIT 187,100,000
Tax Provision 47,200,000
Depreciation and Amortization 90,000,000
Capital Expenditure -111,900,000
Unlevered Free Cash Flow 114,733,792
Current Assets 650,700,000
Current Cash 237,500,000
Current Liabilities 236,900,000
Current Debt 2,200,000
Non-Cash Working Capital (NCWC) 178,500,000
Change in NCWC 24,600,000
EBIT 167,300,000
Tax Provision 40,200,000
Depreciation and Amortization 85,200,000
Capital Expenditure -155,800,000
Unlevered Free Cash Flow 77,198,622
Current Assets 557,300,000
Current Cash 174,300,000
Current Liabilities 261,800,000
Current Debt 32,700,000
Non-Cash Working Capital (NCWC) 153,900,000
Change in NCWC -3,400,000
EBIT 141,200,000
Tax Provision 32,700,000
Depreciation and Amortization 76,900,000
Capital Expenditure -132,000,000
Unlevered Free Cash Flow 41,983,597

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