Latest Ratios: P/E Ratio 38.3x · EV/EBITDA 20.7x · 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 | $44.3B | $36.5B | $33.1B | $22.8B | $18.2B | $17.3B | $13.9B | $13.8B | $6.8B | $7.8B | $7.6B |
| Enterprise Value | $49.1B | $41.3B | $36.4B | $26.2B | $21.7B | $20.9B | $17.6B | $17.6B | $10.1B | $9.5B | $9.1B |
| P/E Ratio → | 38.26 | 31.25 | 31.39 | 27.95 | 28.85 | 31.12 | 33.73 | 42.28 | 22.96 | 29.94 | 24.86 |
| P/S Ratio | 3.97 | 3.27 | 3.19 | 2.35 | 2.18 | 2.22 | 1.84 | 1.68 | 1.55 | 2.02 | 2.58 |
| P/B Ratio | 4.00 | 3.26 | 3.27 | 2.16 | 1.80 | 1.69 | 1.37 | 1.38 | 2.36 | 2.77 | 2.54 |
| P/FCF | 29.58 | 24.36 | 20.37 | 22.44 | 20.52 | 18.37 | 21.53 | 16.62 | 30.62 | 78.77 | 18.96 |
| P/OCF | 25.21 | 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 | 20.71 | 17.41 | 17.61 | 15.05 | 15.11 | 15.88 | 15.56 | 17.94 | 17.26 | 18.05 | 17.21 |
| EV / EBIT | 26.27 | 22.08 | 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 | 8.31 | 8.31 | 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 | 0.4% | 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 | 2.6% | 3.2% | 3.2% | 3.6% | 3.5% | 3.2% | 3.0% | 2.4% | 4.4% | 3.3% | 4.0% |
| FCF Yield | 3.4% | 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 | 0.9% | 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 |
Working capital volatility
Based on current market data, WAB trades at a forward P/E of 25.39, which, according to recent financial disclosures, implies significant investor confidence in the company's ability to sustain high-margin modernization revenue compared to the broader industrial peer group's more modest valuation multiples.
The current P/E of 39.46 suggests that the market is pricing in a transition toward a higher-multiple technology-oriented valuation rather than a traditional rail equipment manufacturer. Investors should monitor whether the company's digital integration strategy can consistently justify this premium, as any deceleration in modernization demand could lead to a rapid multiple contraction.
As reported in quarterly filings, WAB's ROIC has remained range-bound between 1.6% and 2.6% over the last ten quarters, a trend that suggests the company's significant goodwill and intangible asset base may be diluting the returns generated by its core industrial operations.
While the company maintains strong operating margins, the low ROIC relative to peers like Trane Technologies indicates that the capital-intensive nature of the GE Transportation acquisition continues to weigh on overall efficiency. Future improvements in return metrics appear contingent on the company's ability to drive higher organic growth from its existing installed base without further large-scale, dilutive acquisitions.
According to the latest financial statements, WAB's cash conversion cycle reached 129 days in 2026Q1, a figure that, based on historical trends, reflects the inherent difficulty in managing inventory and receivables within a complex, project-based manufacturing environment.
The elevated days inventory outstanding (DIO) of 133 days suggests that the company carries significant buffer stock to support its long-term service agreements, which may be necessary but creates persistent pressure on free cash flow. This structural inefficiency warrants further investigation into whether supply chain optimization can reduce the cash tied up in working capital without compromising service levels.
Based on reported figures, WAB's debt-to-equity ratio has risen to 0.62 as of 2026Q1, a shift that, according to recent balance sheet analysis, indicates a deliberate move toward utilizing financial leverage to fund ongoing modernization initiatives and strategic inorganic expansion.
While the interest coverage ratio of 6.96 remains comfortable, the upward trend in debt levels suggests that the company is becoming more sensitive to interest rate fluctuations. Investors should monitor the company's ability to deleverage during periods of lower project activity to ensure that the balance sheet remains resilient against potential cyclical downturns in rail freight volumes.
As noted in industry research, the P/E ratio is frequently misapplied to WAB because it obscures the company's transition from a cyclical original equipment manufacturer to a recurring-revenue service provider, which fundamentally alters the risk profile of its earnings stream.
Analysts should instead focus on EV/EBITDA or P/FCF adjusted for the lumpy nature of percentage-of-completion accounting, as these metrics better capture the underlying cash-generative power of the aftermarket business. Relying solely on P/E may lead to an inaccurate assessment of the company's valuation by failing to account for the stability provided by its massive, proprietary installed base.
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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 38.3x. The historical average is 23.1x. This places it at the 97th percentile of its historical range.
Westinghouse Air Brake Technologies Corporation's current EV/EBITDA is 20.7x. 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 38.3x. This is at the 97th 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 0.39% 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.