WAB Valuation

Westinghouse Air Brake Technologies Corp

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194.232

-2.778(-1.410%)1D

Overview
Forecast
Valuation
Earnings

WAB Relative Valuation

WAB's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, WAB is overvalued; if below, it's undervalued.

Historical Valuation

Westinghouse Air Brake Technologies Corp (WAB) is now in the Overvalued zone, suggesting that its current forward PE ratio of 21.22 is considered Overvalued compared with the five-year average of 19.03. The fair price of Westinghouse Air Brake Technologies Corp (WAB) is between 157.46 to 190.85 according to relative valuation methord. Compared to the current price of 194.23 USD , Westinghouse Air Brake Technologies Corp is Overvalued By 1.77%.

Relative Value

Fair Zone

157.46-190.85

Current Price：194.23

1.77%

Overvalued

21.22

Trailing

Forward

14.49

EV/EBITDA

Westinghouse Air Brake Technologies Corp. (WAB) has a current EV/EBITDA of 14.49. The 5-year average EV/EBITDA is 13.48. The thresholds are as follows: Strongly Undervalued below 10.71, Undervalued between 10.71 and 12.10, Fairly Valued between 14.87 and 12.10, Overvalued between 14.87 and 16.25, and Strongly Overvalued above 16.25. The current Forward EV/EBITDA of 14.49 falls within the Historic Trend Line -Fairly Valued range.

16.42

EV/EBIT

Westinghouse Air Brake Technologies Corp. (WAB) has a current EV/EBIT of 16.42. The 5-year average EV/EBIT is 15.19. The thresholds are as follows: Strongly Undervalued below 12.38, Undervalued between 12.38 and 13.78, Fairly Valued between 16.59 and 13.78, Overvalued between 16.59 and 18.00, and Strongly Overvalued above 18.00. The current Forward EV/EBIT of 16.42 falls within the Historic Trend Line -Fairly Valued range.

2.91

Westinghouse Air Brake Technologies Corp. (WAB) has a current PS of 2.91. The 5-year average PS is 2.20. The thresholds are as follows: Strongly Undervalued below 1.28, Undervalued between 1.28 and 1.74, Fairly Valued between 2.66 and 1.74, Overvalued between 2.66 and 3.12, and Strongly Overvalued above 3.12. The current Forward PS of 2.91 falls within the Overvalued range.

18.84

P/OCF

Westinghouse Air Brake Technologies Corp. (WAB) has a current P/OCF of 18.84. The 5-year average P/OCF is 16.53. The thresholds are as follows: Strongly Undervalued below 9.81, Undervalued between 9.81 and 13.17, Fairly Valued between 19.89 and 13.17, Overvalued between 19.89 and 23.25, and Strongly Overvalued above 23.25. The current Forward P/OCF of 18.84 falls within the Historic Trend Line -Fairly Valued range.

20.85

P/FCF

Westinghouse Air Brake Technologies Corp. (WAB) has a current P/FCF of 20.85. The 5-year average P/FCF is 19.02. The thresholds are as follows: Strongly Undervalued below 13.86, Undervalued between 13.86 and 16.44, Fairly Valued between 21.60 and 16.44, Overvalued between 21.60 and 24.18, and Strongly Overvalued above 24.18. The current Forward P/FCF of 20.85 falls within the Historic Trend Line -Fairly Valued range.

Westinghouse Air Brake Technologies Corp (WAB) has a current Price-to-Book (P/B) ratio of 3.12. Compared to its 3-year average P/B ratio of 2.40 , the current P/B ratio is approximately 29.88% higher. Relative to its 5-year average P/B ratio of 2.05, the current P/B ratio is about 52.37% higher. Westinghouse Air Brake Technologies Corp (WAB) has a Forward Free Cash Flow (FCF) yield of approximately 4.31%. Compared to its 3-year average FCF yield of 4.43%, the current FCF yield is approximately -2.75% lower. Relative to its 5-year average FCF yield of 4.86% , the current FCF yield is about -11.34% lower.

3.12

P/B

Median3y

2.40

Median5y

2.05

4.31

FCF Yield

Median3y

4.43

Median5y

4.86

Competitors Valuation Multiple

The average P/S ratio for WAB's competitors is 1.80, providing a benchmark for relative valuation. Westinghouse Air Brake Technologies Corp Corp (WAB) exhibits a P/S ratio of 2.91, which is 61.65% above the industry average. Given its robust revenue growth of 2.34%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

WAB.N

Westinghouse Air Brake Technologies Corp

Performance Decomposition

Market capitalization of WAB increased by 22.41% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 11.01 to 12.53.

The secondary factor is the P/E Change, contributed 6.26%to the performance.

Overall, the performance of WAB in the past 1 year is driven by Margin Expansion. Which is more sustainable.

2.34%

2.64B → 2.71B

Revenue Growth

13.81%

11.01 → 12.53

Margin Expansion

6.26%

27.66 → 29.39

P/E Change

22.41%