Latest Ratios: P/E Ratio 42.8x · EV/EBITDA 22.8x · ROE 11.0%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $49.4B | $36.5B | $33.1B | $22.8B | $18.2B | $17.3B | $13.9B | $13.8B | $6.8B | $7.8B | $7.6B |
| Enterprise Value | $54.1B | $41.3B | $36.4B | $26.2B | $21.7B | $20.9B | $17.6B | $17.6B | $10.1B | $9.5B | $9.1B |
| P/E Ratio → | 42.80 | 31.25 | 31.39 | 27.95 | 28.85 | 31.12 | 33.73 | 42.28 | 22.96 | 29.94 | 24.86 |
| P/S Ratio | 4.42 | 3.27 | 3.19 | 2.35 | 2.18 | 2.22 | 1.84 | 1.68 | 1.55 | 2.02 | 2.58 |
| P/B Ratio | 4.47 | 3.26 | 3.27 | 2.16 | 1.80 | 1.69 | 1.37 | 1.38 | 2.36 | 2.77 | 2.54 |
| P/FCF | 32.94 | 24.36 | 20.37 | 22.44 | 20.52 | 18.37 | 21.53 | 16.62 | 30.62 | 78.77 | 18.96 |
| P/OCF | 28.07 | 20.76 | 18.07 | 18.97 | 17.58 | 16.15 | 17.78 | 13.58 | 21.54 | 41.45 | 16.84 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.70 | 3.51 | 2.71 | 2.60 | 2.67 | 2.33 | 2.15 | 2.30 | 2.44 | 3.09 |
| EV / EBITDA | 22.84 | 17.41 | 17.61 | 15.05 | 15.11 | 15.88 | 15.56 | 17.94 | 17.26 | 18.05 | 17.21 |
| EV / EBIT | 28.96 | 22.72 | 22.60 | 20.02 | 20.87 | 22.88 | 23.25 | 26.46 | 20.96 | 22.01 | 19.56 |
| EV / FCF | — | 27.53 | 22.38 | 25.84 | 24.42 | 22.17 | 27.15 | 21.22 | 45.42 | 95.25 | 22.70 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 31.5% | 31.5% | 32.4% | 30.4% | 30.4% | 30.3% | 28.3% | 27.8% | 28.3% | 27.4% | 31.5% |
| Operating Margin | 16.7% | 16.7% | 15.5% | 13.1% | 12.1% | 11.2% | 9.9% | 8.1% | 10.8% | 10.8% | 15.6% |
| Net Profit Margin | 10.5% | 10.5% | 10.2% | 8.4% | 7.6% | 7.1% | 5.5% | 4.0% | 6.8% | 6.8% | 10.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.0% | 11.0% | 10.2% | 7.9% | 6.2% | 5.5% | 4.1% | 5.1% | 10.4% | 9.0% | 13.0% |
| ROA | 5.7% | 5.7% | 5.6% | 4.3% | 3.4% | 3.0% | 2.2% | 2.4% | 3.9% | 4.0% | 6.2% |
| ROIC | 9.6% | 9.6% | 8.8% | 6.9% | 5.5% | 4.8% | 4.0% | 5.0% | 6.7% | 7.1% | 10.3% |
| ROCE | 11.7% | 11.7% | 10.8% | 8.4% | 6.6% | 5.7% | 4.8% | 5.9% | 7.9% | 8.3% | 11.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.50 | 0.50 | 0.39 | 0.39 | 0.39 | 0.40 | 0.42 | 0.44 | 1.34 | 0.66 | 0.64 |
| Debt / EBITDA | 2.34 | 2.34 | 1.92 | 2.33 | 2.78 | 3.08 | 3.75 | 4.51 | 6.62 | 3.57 | 3.60 |
| Net Debt / Equity | — | 0.42 | 0.32 | 0.33 | 0.34 | 0.35 | 0.36 | 0.38 | 1.14 | 0.58 | 0.50 |
| Net Debt / EBITDA | 2.01 | 2.01 | 1.58 | 1.98 | 2.41 | 2.72 | 3.22 | 3.90 | 5.62 | 3.12 | 2.84 |
| Debt / FCF | — | 3.17 | 2.01 | 3.40 | 3.89 | 3.80 | 5.62 | 4.61 | 14.80 | 16.48 | 3.74 |
| Interest Coverage | 8.08 | 8.08 | 8.01 | 6.01 | 5.59 | 5.16 | 3.80 | 3.04 | 4.28 | 5.52 | 9.21 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.11 | 1.11 | 1.30 | 1.20 | 1.25 | 1.32 | 1.20 | 1.29 | 2.70 | 1.44 | 1.98 |
| Quick Ratio | 0.57 | 0.57 | 0.69 | 0.63 | 0.66 | 0.74 | 0.69 | 0.74 | 2.19 | 0.97 | 1.53 |
| Cash Ratio | 0.15 | 0.15 | 0.19 | 0.15 | 0.16 | 0.16 | 0.19 | 0.19 | 0.35 | 0.15 | 0.28 |
| Asset Turnover | — | 0.51 | 0.56 | 0.51 | 0.45 | 0.42 | 0.41 | 0.43 | 0.50 | 0.59 | 0.45 |
| Inventory Turnover | 2.79 | 2.79 | 3.03 | 2.95 | 2.86 | 3.23 | 3.30 | 3.34 | 3.70 | 3.79 | 3.05 |
| Days Sales Outstanding | — | 62.00 | 59.81 | 63.52 | 66.30 | 68.92 | 68.21 | 74.06 | 95.93 | 109.71 | 117.36 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.3% | 0.5% | 0.4% | 0.5% | 0.6% | 0.5% | 0.7% | 0.6% | 0.7% | 0.5% | 0.4% |
| Payout Ratio | 14.8% | 14.8% | 13.3% | 15.1% | 17.5% | 16.5% | 22.3% | 25.0% | 15.7% | 16.1% | 10.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.3% | 3.2% | 3.2% | 3.6% | 3.5% | 3.2% | 3.0% | 2.4% | 4.4% | 3.3% | 4.0% |
| FCF Yield | 3.0% | 4.1% | 4.9% | 4.5% | 4.9% | 5.4% | 4.6% | 6.0% | 3.3% | 1.3% | 5.3% |
| Buyback Yield | 0.5% | 0.6% | 3.3% | 1.8% | 2.6% | 1.7% | 1.5% | 0.0% | 0.0% | 0.1% | 2.8% |
| Total Shareholder Yield | 0.8% | 1.1% | 3.7% | 2.3% | 3.2% | 2.3% | 2.1% | 0.6% | 0.7% | 0.6% | 3.2% |
| Shares Outstanding | — | $171M | $175M | $180M | $183M | $188M | $190M | $177M | $97M | $96M | $91M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying WAB stock.
Westinghouse Air Brake Technologies Corporation's current P/E ratio is 42.8x. The historical average is 23.1x. This places it at the 100th percentile of its historical range.
Westinghouse Air Brake Technologies Corporation's current EV/EBITDA is 22.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.3x.
Westinghouse Air Brake Technologies Corporation's return on equity (ROE) is 11.0%. The historical average is 14.3%.
Based on historical data, Westinghouse Air Brake Technologies Corporation is trading at a P/E of 42.8x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Westinghouse Air Brake Technologies Corporation's current dividend yield is 0.35% with a payout ratio of 14.8%.
Westinghouse Air Brake Technologies Corporation has 31.5% gross margin and 16.7% operating margin. Operating margin between 10-20% is typical for established companies.
Westinghouse Air Brake Technologies Corporation's Debt/EBITDA ratio is 2.3x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Elevated valuation and PSR
Metrics are mathematically derived from official filings.
Margin Expansion Driven by Mix Shift
Gross margin expanded to 36.5% in Q2 2026 from 34.7% a year earlier, reflecting a favorable mix toward aftermarket and digital services, as reported in the latest quarterly filing.
The sequential improvement from Q4 2025's 30.0% gross margin to 36.5% in Q2 2026 underscores the operating leverage inherent in WAB's modernization and aftermarket businesses. Operating margin at 18.9% is near the top of the trailing ten-quarter range, suggesting that the company is capturing pricing power and cost efficiencies. Net margin held at 12.4%, consistent with the prior year, indicating that margin expansion is flowing through to the bottom line despite higher interest costs.
ROIC Recovery After Q4 Dip
ROIC rebounded to 2.6% in Q2 2026 from 1.7% in Q4 2025, but remains below the 2.6% peak seen in early 2025, based on reported quarterly figures.
The quarterly ROIC figures are distorted by the massive goodwill base from the GE Transportation acquisition, which now constitutes 46% of total assets. On a trailing basis, ROIC appears to be stabilizing around 2.5%, but this understates the economic return on tangible capital. The improvement from Q4 2025 suggests that margin expansion and asset efficiency are beginning to offset the drag from acquisition-related intangibles.
Working Capital Drag Intensifies
Cash conversion cycle lengthened to 128 days in Q2 2026 from 112 days in Q4 2024, driven by rising DIO and DSO, as per the latest quarterly data.
Inventory days increased to 129 in Q2 2026 from 121 a year earlier, while DSO remained elevated at 63 days, indicating that WAB is tying up more cash in working capital. The CCC expansion suggests that the company is building inventory to support its growing backlog, but this may pressure free cash flow if not managed carefully. The slight improvement in DPO to 64 days offers limited offset, and investors should monitor whether this trend reverses as modernization projects are delivered.
Leverage Creep Amidst Expansion
Debt-to-equity rose to 0.62 in Q2 2026 from 0.38 a year earlier, while interest coverage fell to 7.97 from 10.78, according to the latest balance sheet.
The increase in leverage is a deliberate strategy to fund growth and shareholder returns, but it has reduced the interest coverage cushion. D/EBITDA at 9.46 is elevated, though this metric is distorted by the low trailing EBITDA due to the Q4 2025 dip. The company's ability to service debt remains adequate, but the trend warrants monitoring if cash flows weaken.
Liquidity Buffer Thins
Current ratio fell to 1.12 in Q2 2026 from 1.76 a year earlier, with quick ratio at 0.59, as reported in the latest balance sheet.
The deterioration in liquidity is driven by increased debt and inventory buildup, leaving WAB with a thinner cushion against short-term obligations. The quick ratio below 1.0 indicates reliance on inventory to meet current liabilities, which could be problematic if demand softens. However, the $1.2 billion deferred revenue balance provides some cash visibility, and the company's access to credit markets appears intact.
Misapplied EV/EBITDA Multiple
EV/EBITDA at 22.73 appears rich, but this metric is distorted by the low EBITDA base from the Q4 2025 dip; a normalized EBITDA would yield a more reasonable multiple, based on reported figures.
The most commonly misapplied ratio for WAB is EV/EBITDA, because the company's EBITDA is heavily influenced by acquisition-related amortization and the cyclicality of the rail industry. Using forward EV/EBITDA of 17.12 provides a better picture, but even that may understate the value of WAB's aftermarket and digital services, which generate recurring revenue. Investors should adjust for the GE Transportation acquisition intangibles and consider a sum-of-the-parts valuation that separates the high-margin services business from the more cyclical OEM segment.