Westinghouse Air Brake Technologies Corporation (WAB) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Industrials · Railroads
Is Westinghouse Air Brake Technologies Corporation a safe investment right now?
Westinghouse Air Brake Technologies Corporation's Altman Z-Score of 3.51 places it in the safe zone. Our fair value estimate is $262.39 (Watch Zone). Moat rating: 3.3/5 stars.
Could Westinghouse Air Brake Technologies Corporation go bankrupt? Altman Z-Score analysis
Z-Score of 3.51 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives WAB's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.0246 | 1.2 | 0.03 |
| B · Retained Earnings / Total Assets | RE / TA | 0.1757 | 1.4 | 0.25 |
| C · EBIT / Total Assets | EBIT / TA | 0.0823 | 3.3 | 0.27 |
| D · Market Cap / Total Liabilities | MCap / TL | 4.0991 | 0.6 | 2.46 |
| E · Revenue / Total Assets | Rev / TA | 0.506 | 1.0 | 0.51 |
How has WAB's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 4.24 | Safe |
| 2023 | 4.34 | Safe |
| 2024 | 4.5 | Safe |
| 2025 | 3.51 | Safe |
Source: Calculated from WAB's latest 10-K filing on SEC EDGAR.
What is Westinghouse Air Brake Technologies Corporation actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $8.33 | Proprietary blend of reported actuals (1Q actual) + analyst consensus, weighted by α |
| Last Year EPS | $6.83 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $10.45 | 11 analysts consensus |
| Trailing P/E | 37.0x | Current market pricing |
| Fair P/E (β discount) | 31.5x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Accelerating | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $293.18 (11 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Westinghouse Air Brake Technologies Corporation have a durable competitive advantage?
Moat rating: 3.3/5.
What makes up WAB's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 3/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 4/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is WAB's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 7.4% | — |
| 2023 | 9.0% | Rising |
| 2024 | 11.5% | Rising |
| 2025 | 10.9% | Stable |
Source: ROIC calculated from SEC EDGAR filings.
Is Westinghouse Air Brake Technologies Corporation's dividend safe?
Can Westinghouse Air Brake Technologies Corporation afford its dividend?
Payout ratio is 15.0%. FCF covers the dividend 8.0x. 32 consecutive years of payments.
Westinghouse Air Brake Technologies Corporation's key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $11.2B | $10.4B | $8.4B | Rising |
| Net Income | $1.2B | $1.1B | $0.6B | Rising |
| Free Cash Flow | $1.5B | $1.6B | $0.9B | Rising |
| Gross Margin | 34.1% | 32.4% | 30.4% | Rising |
Recent events that affect our WAB analysis
WAB analyst consensus: 82% bullish (9 of 11 analysts)
1 Strong Buy, 8 Buy, 2 Hold, 0 Sell, 0 Strong Sell. Consensus target: $293.18 (12.1% upside). Compare with our independent Fair Value: $262.39.
WAB beat EPS estimates by 7.5%
Reported EPS: $2.71 vs estimate $2.52. Earnings strength supports our Fair Value of $262.39 (0.3% above current price).
WAB filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
WAB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAB paid $0.3100/share dividend
Dividend Safety Grade: A. Payout ratio: 15.0%.
WAB filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
WAB beat EPS estimates by 0.9%
Reported EPS: $2.10 vs estimate $2.08. Earnings strength supports our Fair Value of $262.39 (0.3% above current price).
WAB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAB paid $0.2500/share dividend
Dividend Safety Grade: A. Payout ratio: 15.0%.
WAB missed EPS estimates by 9.9%
Reported EPS: $1.81 vs estimate $2.01. Our Fair Value of $262.39 may face downward pressure if the trend continues.
WAB filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
WAB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAB paid $0.2500/share dividend
Dividend Safety Grade: A. Payout ratio: 15.0%.
WAB beat EPS estimates by 4.1%
Reported EPS: $2.27 vs estimate $2.18. Earnings strength supports our Fair Value of $262.39 (0.3% above current price).
WAB filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
WAB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAB paid $0.2500/share dividend
Dividend Safety Grade: A. Payout ratio: 15.0%.
WAB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAB beat EPS estimates by 7.2%
Reported EPS: $1.88 vs estimate $1.75. Earnings strength supports our Fair Value of $262.39 (0.3% above current price).
WAB filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
WAB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAB paid $0.2500/share dividend
Dividend Safety Grade: A. Payout ratio: 15.0%.
WAB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAB missed EPS estimates by 19.3%
Reported EPS: $1.23 vs estimate $1.52. Our Fair Value of $262.39 may face downward pressure if the trend continues.
WAB filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
WAB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about Westinghouse Air Brake Technologies Corporation
What is Westinghouse Air Brake Technologies Corporation stock price today?
Westinghouse Air Brake Technologies Corporation (WAB) stock price is $261.52 as of the latest market close, traded on the NYSE exchange.
What does Westinghouse Air Brake Technologies Corporation do?
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.
What is Westinghouse Air Brake Technologies Corporation market cap?
Westinghouse Air Brake Technologies Corporation has a market capitalization of $44.59B, classifying it as a large-cap stock in the Industrials sector.
What sector and industry is WAB in?
Westinghouse Air Brake Technologies Corporation operates in the Industrials sector, specifically within the Railroads industry. It trades on the NYSE under the ticker symbol WAB.
Is WAB stock overvalued or undervalued?
Based on our valuation model, Westinghouse Air Brake Technologies Corporation trades 0.3% below our fair value estimate — potentially undervalued.
- FairValueLabs Fair Value: $262.39
- Current Price: $261.52
- Valuation Zone: Watch Zone
What is WAB stock forecast and analyst target price?
Based on 11 Wall Street analysts, the consensus price target for Westinghouse Air Brake Technologies Corporation is $293.18, implying upside of 12.1% from the current price.
- Analyst High Target: $315.00
- Analyst Low Target: $270.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Westinghouse Air Brake Technologies Corporation revenue and earnings growing?
Here are the analyst consensus growth estimates for Westinghouse Air Brake Technologies Corporation:
- Revenue growth (current year est.): 10.5%
- EPS growth (current year est.): 16.5%
- Revenue growth (next year est.): 6.3%
- EPS growth (next year est.): 13.8%
What are Westinghouse Air Brake Technologies Corporation's key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $11.2B | Rising |
| Net Income | $1.2B | Rising |
| Free Cash Flow | $1.5B | Rising |
| Gross Margin | 34.1% | Rising |
What is WAB's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 37.0x
- Forward P/E (next 12 months est.): 21.9x
- FairValueLabs Fair P/E: 31.5x
How volatile is WAB stock?
Westinghouse Air Brake Technologies Corporation has a beta of 0.99, meaning it is roughly in line with overall market volatility. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Westinghouse Air Brake Technologies Corporation have?
Westinghouse Air Brake Technologies Corporation's balance sheet shows:
- Total Cash: $520.0M
- Total Debt: $4.71B
- Net Cash Position: $-4.19B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Westinghouse Air Brake Technologies Corporation's free cash flow?
Westinghouse Air Brake Technologies Corporation generated $2.99B in trailing twelve-month free cash flow (from $1.77B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Westinghouse Air Brake Technologies Corporation pay a dividend, and is it safe?
Yes, Westinghouse Air Brake Technologies Corporation pays a regular dividend. Here are the key metrics:
- Dividend Yield: 0.4%
- Payout Ratio: 15.0%
- Consecutive Years Paid: 32
- 5-Year Dividend Growth: -8.4%
- FairValueLabs Safety Grade: A
Is Westinghouse Air Brake Technologies Corporation at risk of going bankrupt?
Westinghouse Air Brake Technologies Corporation's Altman Z-Score is 3.51, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Westinghouse Air Brake Technologies Corporation have a durable competitive advantage?
Westinghouse Air Brake Technologies Corporation scores 3.3/5 stars (Narrow moat) in our moat analysis:
- ROIC Stability: 3/5
- Gross Margin Trend: 4/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is WAB's return on equity (ROE)?
Westinghouse Air Brake Technologies Corporation's return on equity is 11.3%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy WAB stock?
WAB shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol WAB
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is WAB a value stock or speculative?
FairValueLabs classifies Westinghouse Air Brake Technologies Corporation as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of Westinghouse Air Brake Technologies Corporation?
The current CEO of Westinghouse Air Brake Technologies Corporation is Mr. Rafael Ottoni Santana.
What is WAB's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $7.06
- Forward EPS (next 12 months est.): $11.92
- Analyst consensus EPS (this year): $10.45
- Analyst consensus EPS (next year): $11.90
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FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
WAB analysis methodology: How we calculate fair value, Z-Scores, and moat ratings