Westinghouse Air Brake Technologies (WAB) DCF: History & Chart

Westinghouse Air Brake Technologies Corporation (WAB)WABWestinghouse Air Brake Technologies Corporation

About Westinghouse Air Brake Technologies Corporation

Westinghouse Air Brake Technologies Corporation (WAB) delivers a comprehensive suite of advanced technological solutions, equipment, and services tailored for the global freight railway and urban mass transit sectors. Its operations are bifurcated into two principal divisions: Freight and Transit. The Freight segment develops, produces, and maintains critical components for both newly manufactured and operational freight carriages and locomotives. This includes constructing brand-new commuter-focused locomotives, undertaking comprehensive rebuilding of freight locomotives, and delivering sophisticated railway electronic systems, positive train control (PTC) technology, signal design expertise, and related engineering provisions. This segment also furnishes essential heat exchange and cooling apparatus. Its clientele encompasses major publicly listed railway operators, equipment leasing firms, original equipment manufacturers (OEMs) of locomotives and freight cars, and various utility companies. The Transit segment is responsible for the production and upkeep of components utilized in both new and existing passenger conveyance systems, including regional and high-speed trains, subway cars, light-rail vehicles, and buses. This division also renovates subway cars and supplies HVAC (heating, ventilation, and air conditioning) systems, alongside doors for both buses and subways. This division caters to public transit agencies, municipal governments, leasing corporations, and manufacturers specializing in subway cars and buses. Beyond these core offerings, the company's extensive product portfolio further includes advanced electronically controlled pneumatic braking systems, various railway electronic devices, robust freight car undercarriages, crucial draft gears, couplers, and slack adjusters, as well as air compression and drying units. They also offer diverse heat exchange and cooling solutions, track and switch apparatus, and comprehensive railway braking components. WAB manufactures new switcher locomotives, friction products, and provides extensive overhaul, modernization, and refurbishment services for both transit and freight locomotives and cars. Additionally, their offerings extend to platform screen doors, pantographs, window assemblies, specialized couplers, accessibility lifts and ramps for public transport vehicles, and traction motors. Established in 1869, the company maintains its corporate headquarters in Pittsburgh, Pennsylvania.

Pittsburgh, PA

31,000 employees

www.wabteccorp.com

Industrials / Railroads

Sector: Industrials
Industry: Railroads
CEO: Rafael Ottoni Santana

View full financials

Westinghouse Air Brake Technologies Corporation (WAB) DCF Valuation

Price is ABOVE the estimated range

$110.10

$218.46

Model scenario range

$301.25

Today's price

TGM's two-stage DCF values Westinghouse Air Brake Technologies Corporation (WAB) between $110.10 and $218.46 depending on assumptions, with a base case of $153.84. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth), fading to 2.5% long-run; the discount rate (8.8%) reflects its beta.

What would today's price require?

Growth the price assumes+27.6%/yr

Actual FCF growth, last 5 years+15.7%/yr

$301.25 is justified only if free cash flow grows about +27.6% a year (fading to 2.5% long-run) at a 8.8% required return — faster than the company has actually grown.

Scenario	FCF growth (fading to 2.5%)	Discount	Value / share
Conservative	9.4%/yr	9.8%	$110.10
Base case	12.4%/yr	8.8%	$153.84
Optimistic	15.4%/yr	7.8%	$218.46
Third-party model estimate (FMP)	independent reference · retrieved Jul 26, 2026 · assumptions not provided		$243.91

The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.

Price|PE Ratio|FCF Yield|All Metrics

Current Price

$301.25

Market-Implied Growth

+27.6%/yr

vs +15.7% 5Y actual

Model Scenario Range

$110.10 – $218.46

model output — not a price target

WAB DCF Fair Value Calculator

Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for WAB (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.

FCF Growth Rate12.4%/yr

Historical FCF CAGR: 3Y 54.1% · 5Y 15.7% · 10Y 14.6%

Discount Rate (WACC)8.8%

Terminal Growth2.5%

Projection Years10yr

Base inputs: FCF $1.3B · 0.17B shares · net debt $4.8B

Estimated Fair Value

$153.84

-48.9% vs $301.25

Current price$301.25

Third-party model estimate (FMP)$243.91

Sensitivity — fair value by discount rate × terminal growth

How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 12.4%/yr FCF growth and 10-year horizon fixed. Green = above today's $301.25; red = below. Your current case is outlined.

WACC ↓ / Terminal →	1.50%	2.00%	2.50%	3.00%	3.50%
6.8%	$198	$218	$243	$275	$316
7.8%	$160	$174	$190	$210	$234
8.8%	$133	$143	$154	$167	$183
9.8%	$112	$119	$128	$137	$148
10.8%	$96.18	$102	$108	$115	$123