QualityDipStocks / Industrials · Railroads
Westinghouse Air Brake Technologies WAB
Not in a dip by our rules: 9% below its 52-week high.
A quality company trading above our fair value estimate.
- Fair value est.
- $249.40−11%
- Market Value
- $280.73at the price
- Off 52-wk high
- −9%
- Risk vs market
- Market-likebeta 0.99
5 bullish · 5 bearish See why
Key levels
Every level vs today’s $279.60
- 52-wk lowlowest close, 1 year$196.14−29.8%
- Fair value est.base case$249.40−10.8%
- PriceFri Oct 30 close$279.60you are here
- Market Valueavg paid since Oct 21$280.73+0.4%
- 52-wk highhighest close, 1 year$305.79+9.4%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 10.1% ±2 points. Bear = 10.5% and 8.1%; bull = 8.5% and 12.1% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price sits inside the range.
What the price implies To be worth today’s price, WAB’s free cash flow would need to grow about 12% a year for five years; our estimate uses 10%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much WAB moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves about in line with the market, and its own price swings are 2.1× the S&P 500’s.
- Beta vs S&P 500
- 0.99
- Volatility
- 26% vs 13% SPY
- Correlation SPY
- 0.48
- Correlation QQQ
- 0.39
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
Cash returnsFree cash flow grew 41% over the last 12 months vs the 12 months before.
GrowthSales grew 13% to $12.2B over the last 12 months vs the 12 months before (SEC filings).
ProfitabilityOperating margin widened to 16.1% in FY2025 from 13.1% in FY2023 (SEC filings).
ProfitabilityGross margin widened to 34.1% in FY2025 from 30.4% in FY2023 (SEC filings).
QualityPasses all four of our quality checks: cash generation, returns on capital, growth and balance sheet.
Top bearish points 5 of 5
ValuationOur DCF fair value estimate is $249.40, 11% below the price.
Balance sheetDebt rose 36% to $5.5B from FY2023 to FY2025.
ValuationP/E of 34.6× is 14% above its own average of 30.2× at the last 3 fiscal year-ends.
ValuationEV/EBITDA of 20.0×, above the 16.6× median for the 96 Industrials companies we cover.
Cash returnsDividend yield of 0.4%, below the 1.1% median for the 116 Industrials companies we cover.
Who’s talking about it
Notable investors, executives, analysts and public figures on Westinghouse Air Brake Technologies in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Railroads
All fundamentals
P/E 34.6 · FCF yield 3.8% · ROE 12%
Valuation
- P/E
- 34.6×3-yr-end avg 30.2× · Industrials median 27.5×
- Price / FCF
- 26.5×
- FCF yield
- 3.8%
- EV / EBITDA
- 20.0×
- Price / sales
- 3.86×
- Price / book
- 4.16×
- Market cap
- $47.2Bprice × diluted shares
- Enterprise value
- $53.1B
Growth
- Revenue, 12 months
- $12.2B
- Sales growth, 12 months
- +13.2%vs the 12 months before
- Sales growth, 3 yrs
- +10.1%/yrfrom FY2022
- Diluted EPS, 12 months
- $8.05
- EPS growth, last FY
- +13.1%
- Net income, 12 months
- $1.4B
- Net income growth
- +16%12 months vs before
Profitability
- Gross margin
- 35.6%
- Operating margin
- 17.2%
- Net margin
- 11.2%
- FCF margin
- 14.6%
- Return on equity
- 12%
- Return on invested capital
- 9%
Balance sheet
- Cash & short-term inv.
- $489M
- Total debt
- $6.4B
- Net cash
- −$5.9B
- Debt / equity
- 0.56×
- Interest coverage
- 7.0×operating income / interest
Cash flow & returns
- Free cash flow, 12 months
- $1.8B
- FCF growth, 12 months
- +41%
- Dividend yield
- 0.43%$201M paid
- Payout ratio
- 15%
- Buybacks, 12 months
- $837M1.8% of market cap
- Share count, 1 year
- −1.3%diluted shares vs a year ago
- Stock-based comp
- $97M
Trailing 12 months to Sep 30, 2026; balance sheet at Sep 30, 2026. From Westinghouse Air Brake Technologies’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $249.40 · MV $280.73 · FCF value $259.75
Assumes 10.1% growth for 5 years (revenue grew 10.1% a year FY22–FY25), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $10.56 a share (trailing 12 months to Sep 30, 2026), from the 10-Q filed Oct 21, 2026.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only arm once a company is in a dip.
Momentum & 52-week range
RSI 45 · 5 days +2.7%
The business
FCF $1.8B · Sales +8%
- Free cash flow, 12 months$1.8B
- Free-cash-flow yield3.7%
- Free-cash-flow margin15%
- Gross margin36%
- Operating margin17%
- Return on invested capital9%
- Return on equity12%
- Sales growth (latest quarter vs year-ago quarter)+8%
- Net debt / EBITDA2.2×
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
Get a text when WAB fires a reversal signal
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