Westinghouse Air Brake Technologies Corporation Common Stock (WAB) fair value
Industrials · Railroads · NYSE · United States
$272.35-1.49%
Market cap $46.7BNext earnings 2026-10-21Updated Oct 23, 2026
Our verdict
Trades 83% above our fair value
Price
$272.35
Model fair valueConfidence: good
$149
Model range
$101 to $236
Fair value $149
Price $272
4 models fit Westinghouse Air Brake Technologies Corporation Common Stock and they disagree: 1 of 4 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
Large premium(i)Bronze53
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionWestinghouse Air Brake Technologies Corporation Common Stock (WAB)
Fair value (4 models)
$149
ACCE price target
$275
Rating
Overvalued
Horizon
12 months
Fair value published on 23 Oct 2026, 12:04 CEST; previously $157 since 19 Oct 2026, 19:04 CEST.
ACCE price target published on 22 Oct 2026, 01:52 CEST; previously $283 since 20 Sept 2026, 00:00 CEST.
Rating published on 19 Oct 2026, 19:04 CEST.
Price used: $272 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
82.6% above
-45.2% to fair value
ACCE score
67
out of 100
Analysts
83% buy
12 covering
P/E
34.3x
forward 23.8x
1-year return
+38.3%
Dividend yield
0.09%
Westinghouse Air Brake Technologies Corporation Common Stock in four questions
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Overview
ACCE thesis
Wabtec makes locomotives, freight braking systems and train control technology, and sells services for the existing rail fleet. Revenue growth of 17.5% is strong for an industrial, with a 19.2% operating margin and a 35.7% gross margin. The trailing PE of 38.4 falls to 23.8 forward. The internal score is 65/100.
⚠ Investor warnings · 2 flagsAI-assisted·How I use AI
moderate
Rich valuation multiples
P/E of 34.3 and EV/EBITDA of 22.2 sit well above typical railroad peers, and the stock trades 82.6% above the model fair value of $149.12. Little room for an earnings miss.
moderate
Insider selling without buying
Last 10 disclosed insider transactions show $0.00M in buys against $7.98M in sales.
AI research notes
AI-assisted·How I use AIWritten Oct 24, 2026 · figures from 2026-10-23 · prices to Oct 23, 2026
Why it could do well
Free cash flow over the last twelve months reached $1.5B, and the company is still growing revenue at 8.1% a year.
The share count fell 2.1% last year, so each remaining share claims a slightly larger slice of the earnings.
Why it could disappoint
The stock trades 82.6% above the model fair value of $149.12, and four of five valuation models sit in that range.
At 34.3x trailing and 23.8x forward earnings, the shares cost more than the sector median forward multiple of 21.7x.
A return on invested capital of only 5.8% suggests the money spent on growth, including acquisitions, is earning modest returns.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Walk me through this stock
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Valuation
INVESTOR
Where WAB's valuation models land
Price
$272.35
Model fair value
$149
Model range
$101 to $236
Fair value $149
Price $272
The price is above the whole model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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+Conviction breakdown and growth / value / quality / momentum scores