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DCF Valuation
Base-case fair value
$155.34
Intrinsic $207.12 · 25% MOS
Current price: $268.88
Base-case summary
Our base-case DCF for Westinghouse Air Brake Technologies Corp (WAB) projects 10 years of free cash flow growth at 9.8% for years 1–5 and 4.9% for years 6–10, anchored to 9.8% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $1.5B in trailing free cash flow, this produces an intrinsic value of $207.12 per share. A 25% safety margin gives a fair value of $155.34, suggesting the stock is currently 42% overvalued against the $268.88 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$1.5B
Cash & equivalents
$531M
Total debt
$6.9B
Shares outstanding
171M