Westinghouse Air Brake Technologies Corporation (WAB) Stock Analysis
Score ACompounder · Grade C · Bullish
$256.19
$375.71
+46.7%
10/10
C
Compounder
Investment Thesis
Good opportunity: Solid company with good risk/reward at 7.9:1.
For New Investors
Quantitative score: high
For Current Holders
Quantitative score: neutral
Buy if
- Price drops 15-20% (improves asymmetry)
- Bull scenario catalysts materialize
- Market-wide correction creates opportunity
Sell if
- Bear scenario triggers occur
- Quality metrics deteriorate (ROIC declining)
- Better alternatives emerge
Valuation
Fair Value estimate: $375.71 (+46.7%). Significantly undervalued.
PEG-Based EPS
$493.64
FCF DCF Model
$372.74
EV/EBITDA
$281.90
Blended Fair Value
$375.71
Confidence
High
Methods
PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA
Quality Analysis
73/120 points
Investable
ROE (3Y Avg)
9.6%
ROIC-WACC Spread
-0.5%
D/E Ratio
0.5x
Current Ratio
1.1x
Interest Coverage
8x
FCF Positive Years
3/3
Quality Flags
- Low ROE: 9.6% (need >14%, got 11/20 pts)
- ROIC spread: -0.5pp (got 0/25 pts)
- Leverage: D/E 0.5x (12/15 pts)
Market Sentiment
Wall Street Consensus
$305.00
+19.1% Upside
11 analysts
Range: $291.00 — $318.00
Rating: Strong Buy
Our model is slightly more cautious than Wall Street.
Trend & Technical
Price ($256.26) is 14.7% above SMA 200 ($223.43). Bullish trend confirmed.
Tech Score 66/100 — Neutral technical picture. Mixed signals across indicators.
Risk & Reward
Asymmetry Ratio
7.89:1
Expected Return
+37.5%
Bull Upside
+78.9%
Bear Downside
-10.0%
Excellent asymmetry: 7.89:1 ratio. Upside significantly outweighs downside.
Verdict: Very Favorable
Scenario Analysis
Bear
Base
Bull
Buy Zone & Action Plan
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AI Executive Summary
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Technical Analysis
RSI, MACD, moving averages, trend signals, and momentum indicators.
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Frequently Asked Questions
What is the fair value of WAB?
Based on our multi-method conviction analysis, the estimated fair value of Westinghouse Air Brake Technologies Corporation (WAB) is $375.71. This is calculated by blending PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is high.
Is WAB a buy, sell, or hold?
WAB currently has a BUY rating with a conviction score of 10/10. Good opportunity: Solid company with good risk/reward at 7.9:1. Quantitative score: high.
Is WAB a high-quality stock?
Westinghouse Air Brake Technologies Corporation has a quality grade of C (73/120 points), rated as Investable. Key metrics include ROE of 9.6%, ROIC-WACC spread of -0.5%, and D/E ratio of 0.5x.
What type of stock is WAB?
WAB is classified as a "compounder" in our framework. High P/E: 36.2x, Low dividend (reinvesting): 0.4%, Cyclical sector: Industrials, Moderate growth: 12.6%, Market-like beta: 0.97
What do Wall Street analysts say about WAB?
11 Wall Street analysts have a consensus price target of $305.00 for WAB, representing +19.1% upside. Targets range from $291.00 to $318.00. The consensus recommendation is "Strong Buy". Our model is slightly more cautious than Wall Street.
What are the risks of investing in WAB?
The risk/reward asymmetry ratio for WAB is 7.89:1, rated as Very Favorable. Excellent asymmetry: 7.89:1 ratio. Upside significantly outweighs downside. The expected return is +37.5%, with bull case upside of +78.9% and bear case downside of -10.0%.
What is the current trend for WAB?
WAB is in a bullish trend. Price ($256.26) is 14.7% above SMA 200 ($223.43). Bullish trend confirmed. The technical score is 66/100.
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Last updated: May 19, 2026 · Framework version 3.7
This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.