What is Westinghouse Air Brake Technologies Corporation (WAB) DCF Fair Value and Intrinsic Value in 2026?

Westinghouse Air Brake Technologies Corporation (WAB) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Westinghouse Air Brake Technologies Corporation's historical Return on Invested Capital (ROIC) and Moat Rating?

Westinghouse Air Brake Technologies Corporation operates in the Industrials sector (Railroads) with an economic moat rating of WIDE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Westinghouse Air Brake Technologies Corporation's financial health rating and Piotroski F-Score?

Westinghouse Air Brake Technologies Corporation's balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Westinghouse Air Brake Technologies Corporation (WAB) for quarterly SEC filing thesis breaks?

LocalAlpha audits Westinghouse Air Brake Technologies Corporation's 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksWAB

WAB

Westinghouse Air Brake TechnoloIndustrials / RailroadsINTACT

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. The company also offers positive train control equipment; electronically controlled pneumatic braking products; railway electronics; signal design and engineering services; distributed locomotive power, and train cruise and remote controls; industrial/mobile Internet of Things hardware and software, edge-to-cloud, on and off-board analytics and rules, and asset performance management solutions; rail and shipper transportation management, and port visibility and optimization solutions; and network optimization solutions. In addition, it provides freight car trucks, braking equipment, and related components; air compressors and dryers, as well as heating, ventilation, and air conditioning (HVAC) systems; heat transfer components and systems; custom engineered burners and combustion systems; rail gear, signaling, and switch products; and turbochargers. Further, it offers freight locomotive overhauls, modernizations, and refurbishment; locomotive and car maintenance; transit locomotive and car overhaul; unit exchange of locomotive components; long-term parts arrangements; and way equipment maintenance services. Additionally, it provides railway and freight braking equipment and related components; brake shoes, discs, and pads; HVAC equipment; access and platform screen doors; pantographs; power converters and battery chargers; passenger information systems and closed-circuit television; signaling and railway electric relays; and doors, window assemblies, accessibility lifts, ramps, and electric charging solutions for buses. The company was founded in 1869 and is headquartered in Pittsburgh, Pennsylvania.

Share Price

$283.22

52W: $184.26 - $306.64

DCF Fair Value

$111.12

-154.9% Premium

Thesis Hub

P/E (TTM)

37.7x

ROIC

14.4%

Operating Margin

19.2%

FCF Yield

2.3%

Debt / Equity

0.62x

Piotroski Score

7/9

Altman Z-Score

3.3

Market Cap

$47.8B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($111.12)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$111.12

MOS Buy Target (-25%)

$83.34

Valuation Overlays: DCF Fair Value ($111.12) 25% MOS Buy Target ($83.34) Revised Graham ($157.65) Graham Number ($105.86)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$283.22

DCF Fair Value

$111.51

-154% Premium

Starting Free Cash Flow ($M)$1,101M

$100M$1,101M (Reported)$50,000M

Stage 1 Growth (Years 1-5)9.6%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$6,200M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$10.6B

PV of Terminal Value

$14.5B

Implied Enterprise Value

$25.0B

Implied Equity Value

$18.8B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$1,207	$1,323	$1,450	$1,589	$1,741	$1,820	$1,901	$1,987	$2,076	$2,170
Present Value (PV)	$1,107	$1,113	$1,119	$1,125	$1,132	$1,085	$1,040	$997	$956	$917

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-167.5% Premium

$105.86

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $7.51BVPS: $66.32

Revised Graham Formula-79.7% Premium

$157.65

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings2.2% Yield

$6.19 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $1.0BYield: 2.2%

Reverse DCF: Market Growth Expectation

HIGH BARRIER

15.9% CAGR (Next 10 Yrs)

At the current price of $283.22, the market is assuming the business will compound Free Cash Flow at 15.9% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

ℹ Fair expectations: Requires steady execution.

Autonomous Thesis Underwriting

Surveil WAB with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Westinghouse Air Brake Technolo. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 19.2% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Westinghouse Air Brake Technolo (WAB) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Westinghouse Air Brake Technolo.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Westinghouse Air Brake Technolo has an estimated DCF intrinsic fair value of $111.12 per share compared to its current market price of $283.22. This represents an estimated 154.9% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $105.86.