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Westinghouse Air Brake Technologies Corp (WAB)

Fair Value
IndustrialsRailroadsUnited States

Fundamental

65

Price

$287.18

Market Cap

$49.38B

Part 1 · What the company is worth

Overview

Westinghouse Air Brake Technologies Corporation provides locomotives, equipment, systems, and services for the freight rail and passenger transit industries worldwide. It operates in two segments, Freight and Transit. It offers diesel-electric and liquid natural gas-powered locomotives; engines, electric motors, and propulsion systems; and marine and mining products. The company also offers positive train control equipment; electronically controlled pneumatic braking products; railway electronics; signal design and engineering services; distributed locomotive power, and train cruise and remote controls; industrial/mobile Internet of Things hardware and software, edge-to-cloud, on and off-board analytics and rules, and asset performance management solutions; rail and shipper transportation management, and port visibility and optimization solutions; and network optimization solutions. In addition, it provides freight car trucks, braking equipment, and related components; air compressors and dryers, as well as heating, ventilation, and air conditioning (HVAC) systems; heat transfer components and systems; custom engineered burners and combustion systems; rail gear, signaling, and switch products; and turbochargers. Further, it offers freight locomotive overhauls, modernizations, and refurbishment; locomotive and car maintenance; transit locomotive and car overhaul; unit exchange of locomotive components; long-term parts arrangements; and way equipment maintenance services. Additionally, it provides railway and freight braking equipment and related components; brake shoes, discs, and pads; HVAC equipment; access and platform screen doors; pantographs; power converters and battery chargers; passenger information systems and closed-circuit television; signaling and railway electric relays; and doors, window assemblies, accessibility lifts, ramps, and electric charging solutions for buses. The company was founded in 1869 and is headquartered in Pittsburgh, Pennsylvania.

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Direct competitors

Who this company fights with for the same customers

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No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$11.98B

Trailing 12 months (through 6/30/2026)

Net Income

$1.27B

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$1.50B

Total Equity

$11.14B

Total Liabilities

$10.88B

Current Ratio

1.12

Interest Coverage

6.92

Debt/EBITDA

3.02

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseFairly Valued

Fair Value

$360.01

Current Price

$287.18

Margin of Safety

+20.2%

Fair Value Range

$255.55 - $464.46

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$329.58
Discounted cash flow (DCF):$482.86
Earnings multiple (P/E):$179.14
Graham growth formula:$382.50
Earnings power value (EPV):$94.84
Justified P/B:$85.64
Dividend discount (Gordon):$18.65
P/FFO, funds from operations:$158.28
Mid-cycle earnings:$207.61
Revenue multiple:$200.88
Analyst Consensus:Strong Buy (13B / 5H / 0S)
Last Earnings Surprise:+4.91%

Valuation Metrics

P/E Ratio

38.60

ROE

10.5%

P/B Ratio

4.33

P/FCF

28.30

Gross Margin

35.0%

ROIC

8.8%

Profitability Radar

Value Creation (Economic Moat)

ROIC

8.8%

WACC

8.8%

ROIC − WACC

-0.0 pp

ROIC is roughly in line with the cost of capital — the company is barely covering its capital cost.

Fundamental Analysis Criteria

Passed (22)

  • EPS shows upward trend
  • EPS CAGR 5.70%
  • Price CAGR 13.06%
  • ROIC 8.7%
  • Gross Margin 35.0%
  • P/FCF 28.30
  • Debt/Equity ratio
  • Operating Margin 16.4%
  • Positive Free Cash Flow
  • CapEx intensity
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • ROE 11.4%
  • Revenue Growth 5Y 8.1%
  • Analyst Consensus 72% Buy
  • Earnings Surprise avg 3.2%
  • PEG Ratio 1.50
  • Earnings Quality (OCF/NI) 1.58
  • Share Dilution -2.0%
  • Piotroski F-Score 5/9

Failed (5)

  • P/B Ratio 4.33
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Net Margin Trend 10.6% vs 10.9%

Unavailable (1)

  • Dividend Payout NaN%

Piotroski F-Score

5/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

1.58

High quality: earnings backed by cash

Share Dilution

-2.0%

Buying back shares. Shareholder friendly

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Rafael Ottoni SantanaChairman & CEO53
Mr. John A. Olin C.P.A.Executive VP & CFO64
Mr. Eric GebhardtExecutive VP & Chief Technology Officer57
Mr. David L. DeNinnoExecutive VP, General Counsel & Secretary69
Mr. Pascal SchweitzerPresident of Transit47
Mr. Greg A. SbroccoExecutive Vice President of Global Operations55
Mr. John A. Mastalerz Jr.Senior VP of Finance & Chief Accounting Officer58
Rick SmithChief Information Officer-
Ms. Nicole B. TheophilusExecutive VP & Chief Administrative Officer55
Ms. Kyra YatesVice President of Investor Relations46

Audit Risk

3

Board Risk

7

Compensation Risk

7

Shareholder Rights Risk

5

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-02-13

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-07-22

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-07-22

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for WAB, sourced from Markets Gazette.

  • 3/17/2026POSITIVE
    Here's How Much You Would Have Made Owning Westinghouse Air Brake Stock In The Last 5 Years

    Westinghouse Air Brake Technologies Corporation (WAB) stock has delivered a significant return to investors over the past five years. While specific figures are not detailed in the provided snippet, the title implies a strong positive performance, suggesting substantial capital appreciation for shareholders. This historical performance indicates robust business operations and effective management, potentially driven by factors such as increased demand for rail infrastructure, successful acquisitions, or technological advancements in braking systems. Investors considering WAB should note this long-term upward trend as a key indicator of its market resilience and growth potential.

  • 2/26/2026POSITIVE
    If You Invested $1000 In Westinghouse Air Brake Stock 20 Years Ago, You Would Have This Much Today

    A retrospective analysis highlights the remarkable performance of Westinghouse Air Brake, now Wabtec Corporation, over the past two decades. A $1000 investment made 20 years ago in the stock would have generated a significant return, demonstrating the company's long-term growth potential in the rail transport sector. This historical data underscores the resilience and value-creation capability for shareholders, providing a concrete example of how patience and selecting robust companies can pay off handsomely. For current investors, Wabtec's history can serve as a reminder of the importance of evaluating a company's track record.

via Markets Gazette