Alcon Inc (ALC) is overvalued and West Pharmaceutical Services Inc (WST) is overvalued.
Both trade above our estimate of their intrinsic value. ALC is the closer of the two: -131%, against -256% for WST.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.9% (average of 3 methods) values the shares at $28.43; the price of $65.59 is 131% above that value, and 76% of that value comes from beyond year five.
Leak Score 14/100 on 3 of 12 signals
Discounting its cash flows at 10.4% (average of 3 methods) values the shares at $104.26; the price of $371.09 is 256% above that value, and 71% of that value comes from beyond year five.
Leak Score 61/100 on 10 of 12 signals
| Metric | ALC | WST |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $65.59 | $371.09 |
| Intrinsic value | $28.43 | $104.26 |
| Margin of safety | -131% | -256% |
| Leak Score | 14/100 (3/12) | 61/100 (10/12) |
| Market cap | $31.6B | $26.1B |
| Revenue growth, 5 years | 8.8% | 7.4% |
| Operating margin | 10.9% | 22.0% |
| Net margin | 5.9% | 17.0% |
| Return on equity | 2.9% | 19.1% |
| Debt to equity | 0.25 | 0.11 |
| P/E | 50.3x | 47.4x |
| Forward P/E | 16.6x | 37.1x |
| P/B | 1.5x | 8.7x |
| Dividend yield | 0.6% | 0.2% |