Question 1

What is West Pharmaceutical Services, Inc.'s WACC?

Accepted Answer

West Pharmaceutical Services, Inc. (WST) has a Weighted Average Cost of Capital (WACC) of 8.41%. This is calculated using a Cost of Equity of 8.46% (via CAPM with a beta of 0.88) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 99.21% in the capital structure.

Question 2

Is West Pharmaceutical Services, Inc.'s WACC high or low?

Accepted Answer

West Pharmaceutical Services, Inc.'s WACC of 8.41% falls within the typical 8-12% range for mid-cap growth companies. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is West Pharmaceutical Services, Inc.'s WACC calculated?

Accepted Answer

West Pharmaceutical Services, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.46% is derived from the CAPM model using a beta of 0.88. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 99.21% equity and 0.79% debt.

West Pharmaceutical Services, Inc. (WST) — WACC 分析

WACC 构成

解读

West Pharmaceutical Services, Inc.（WST）WACC：8.41%

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West Pharmaceutical Services, Inc.（WST） WACC 解读

WST 公司分析

WST DCF 估值

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