On July 22, 2026, Westinghouse Air Brake Technologies Corp WAB shares rose 10.0%, bringing the current price to $290.00. The stock has experienced a significant gain, with a 52-week range fluctuating between $184.26 and $295.41.
- GF Valueâ„¢ verdict: Current price of $290.00 is 35.3% above the GF Valueâ„¢ of $214.32.
- GF Scoreâ„¢: 90/100 (Strong), indicating a robust financial and operational position.
- Most notable signal: Insider activity shows that insiders sold $2.8M worth of shares in the last three months, with no buying activity.
Is WAB Overvalued or Undervalued?
With the current trading price of $290.00 compared to the GF Valueâ„¢ of $214.32, Westinghouse Air Brake Technologies Corp WAB is currently deemed overvalued by 35.3%. This significant discrepancy suggests that the stock may be trading at a premium relative to its intrinsic value, which indicates a potential risk for investors considering entering the stock at this price point. The GF Valuation label indicates that the stock is significantly overvalued, which often signals caution for potential investors.
GF Valueâ„¢ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. A margin of safety is essential in investing to protect against downside risk; however, in this case, the lack of a substantial margin of safety suggests that investors may be exposed to greater risk should the stock price correct to align more closely with its intrinsic value.
How Does WAB's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 41.0x | 30.1x |
| Forward P/E | 27.3x | N/A |
The current P/E ratio of 41.0x is significantly above its 5-year median P/E of 30.1x, suggesting that WAB is trading at a relatively higher valuation compared to its historical averages. This elevated P/E ratio aligns with the GF Valueâ„¢ verdict, reinforcing the conclusion that WAB is overvalued given its current price levels.
What Does WAB's GF Scoreâ„¢ Tell Us?
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 90/100 |
| Financial Strength | 6/10 |
| Profitability | 8/10 |
| Growth | 9/10 |
| Valuation | 6/10 |
| Momentum | 9/10 |
The GF Score™ of 90/100 indicates that WAB is positioned strongly in terms of financial health and operational performance. The strongest areas are Growth (9/10) and Momentum (9/10), reflecting a solid capability for future expansion and price appreciation. However, the Financial Strength score of 6/10 suggests there are some areas of concern regarding the company’s balance sheet, which could warrant further investigation for potential risks.
What Are Insiders Doing with WAB Stock?
Recent insider activity reveals that insiders have sold approximately $2.8 million worth of WAB shares in the last three months, with no buying activity reported. This pattern of selling could signal a lack of confidence among insiders regarding the current valuation or future prospects of the company. Typically, insider selling can be seen as a negative indicator, as it may reflect views on the stock's future performance.
What This Means for Investors
Based on the GF Valueâ„¢ analysis, Westinghouse Air Brake Technologies Corp WAB is currently considered overvalued, trading at a significant premium relative to its intrinsic value. This indicates that potential investors should exercise caution, as the stock may be subject to price corrections in the future.
For the complete analysis, visit the Westinghouse Air Brake Technologies Corp WAB stock page. You can also explore the GF Valueâ„¢ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions
What is WAB's GF Scoreâ„¢?
WAB's GF Scoreâ„¢ is 90/100, indicating a strong financial and operational position, suggesting potential for higher long-term returns.
Is WAB overvalued or undervalued?
WAB is overvalued, with a current price of $290.00 being 35.3% above the GF Valueâ„¢ of $214.32.
What is WAB's P/E ratio?
WAB's P/E ratio is 41.0x, which is 36% above its 5-year median P/E of 30.1x, indicating a higher valuation compared to its historical benchmarks.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
