Westinghouse Air Brake Technologies Corporation (WAB) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-18.6%

$233.60

vs $287.00 price

Levered DCF

$249.51

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

3.63

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	31.12×	31.34×	27.83×	28.76×	31.12×	33.58×	40.73×	22.88×
P/B	3.27×	3.27×	2.16×	1.8×	1.69×	1.37×	1.33×	2.35×
P/S	3.26×	3.18×	2.34×	2.17×	2.21×	1.84×	1.62×	1.55×
EV / EBITDA	18.09×	17.53×	14.63×	14.77×	15.41×	15.37×	17.35×	17.01×
Gross margin	31.5%	32.4%	30.4%	30.4%	30.3%	28.3%	27.8%	28.3%
Operating margin	16.7%	15.5%	13.1%	12.1%	11.2%	9.9%	8.1%	10.8%
Net margin	10.5%	10.2%	8.4%	7.6%	7.1%	5.5%	4.0%	6.8%
Current ratio	1.11×	1.3×	1.2×	1.25×	1.32×	1.2×	1.29×	2.7×
Debt / equity	0.5×	0.39×	0.39×	0.4×	0.4×	0.42×	0.44×	1.35×
Interest coverage	8.31×	8×	5.81×	5.44×	4.95×	3.74×	3.03×	4.22×
Dividend yield	0.5%	0.4%	0.5%	0.6%	0.5%	0.7%	0.6%	0.7%
Payout ratio	14.8%	13.3%	15.1%	17.5%	16.5%	22.3%	25.0%	15.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	10.5%	10.5%	7.8%	6.3%	5.5%	4.1%	3.3%	10.3%
Return on invested capital	7.6%	7.9%	6.1%	5.0%	4.3%	3.5%	3.1%	5.3%
Return on assets	5.3%	5.6%	4.3%	3.4%	3.0%	2.2%	1.7%	3.4%
Free cash flow yield	4.1%	4.9%	4.5%	4.9%	5.5%	4.7%	6.3%	3.3%
Earnings yield	3.2%	3.2%	3.6%	3.5%	3.2%	3.0%	2.5%	4.4%
Enterprise value	$41.1B	$36.3B	$26.1B	$21.6B	$20.9B	$17.5B	$17.1B	$10B
Net debt / EBITDA	2.09×	1.58×	1.93×	2.36×	2.65×	3.19×	3.88×	5.56×
Cash conversion cycle (days)	126	113	120	112	114	118	112	126