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Westinghouse Air Brake TechnologiesWAB +0.72%87 Forward Rate of Return (Yacktman) % is 20.59% as of Jun. 2026, which is 90% above its 10-year median of 10.84. GuruFocus rates WAB with a GF Score™ of 87/100 and a GF Value™ of $226.75 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 761 Transportation companies, Westinghouse Air Brake Technologies ranks better than 74.9% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Westinghouse Air Brake Technologies's forward rate of return for was 20.59%.
The historical rank and industry rank for Westinghouse Air Brake Technologies's Forward Rate of Return (Yacktman) % or its related term are showing as below:
WAB'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 0.09 Med: 10.84 Max: 23.64
Current: 20.47
During the past 13 years, Westinghouse Air Brake Technologies's highest Forward Rate of Return was 23.64. The lowest was 0.09. And the median was 10.84.
WAB's Forward Rate of Return (Yacktman) % is ranked better than 74.9% of 761
companies
in the Transportation industry
Industry Median: 10.56
vs WAB: 20.47
Unlike the Earnings Yield %, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Westinghouse Air Brake Technologies (NYSE:WAB) Forward Rate of Return (Yacktman) % Explanation
Unlike the Earnings Yield, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.
Be Aware
In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.
Westinghouse Air Brake Technologies Forward Rate of Return (Yacktman) % Related Terms
Westinghouse Air Brake Technologies Forward Rate of Return (Yacktman) % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Westinghouse Air Brake Technologies Forward Rate of Return (Yacktman) % Chart
WAB vs NSC, CSX, TRN: Forward Rate of Return (Yacktman) % Comparison
For the Railroads subindustry, Westinghouse Air Brake Technologies's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Westinghouse Air Brake Technologies Forward Rate of Return (Yacktman) % vs Transportation Industry
For the Transportation industry and Industrials sector, Westinghouse Air Brake Technologies's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Westinghouse Air Brake Technologies's Forward Rate of Return (Yacktman) % falls into.
Westinghouse Air Brake Technologies Forward Rate of Return (Yacktman) % Calculation
Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):
If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.
The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Forward Rate of Return (Yacktman) % of 20.59% mean?
Westinghouse Air Brake Technologies (WAB) has a Forward Rate of Return (Yacktman) % of 20.59% as of Jun. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Westinghouse Air Brake Technologies and its competitors. This is 90% above median its historical median of 10.84. Over the past decade, Westinghouse Air Brake Technologies' Forward Rate of Return (Yacktman) % has ranged from 0.09 to 23.64. According to the industry distribution chart, Westinghouse Air Brake Technologies ranks #191 out of 761 companies in the Transportation industry, placing it in the top 25.1%.
Is Westinghouse Air Brake Technologies' Forward Rate of Return (Yacktman) % too high?
Westinghouse Air Brake Technologies' current Forward Rate of Return (Yacktman) % of 20.59% is 90% above median its 10-year median of 10.84. Over the past 10 years, this metric has ranged from a low of 0.09 to a high of 23.64. The Transportation industry median Forward Rate of Return (Yacktman) % is 10.56. Westinghouse Air Brake Technologies' value of 20.59% is 95% above this industry median. Based on the distribution chart, Westinghouse Air Brake Technologies ranks #191 out of 761 companies in the Transportation industry, which is above the industry midpoint. Overall, Westinghouse Air Brake Technologies has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Westinghouse Air Brake Technologies' Forward Rate of Return (Yacktman) % compare to NSC and CSX?
According to the Transportation industry distribution chart, Westinghouse Air Brake Technologies ranks #191 out of 761 companies for Forward Rate of Return (Yacktman) %. This puts Westinghouse Air Brake Technologies in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 10.56. Westinghouse Air Brake Technologies' value of 20.59% is 95% above this benchmark. Historically, Westinghouse Air Brake Technologies' own Forward Rate of Return (Yacktman) % has ranged from 0.09 to 23.64 over the past decade. While the company's 10-year median is 10.84 vs. the industry median of 10.56, Westinghouse Air Brake Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward Rate of Return (Yacktman) % for a Transportation company?
The median Forward Rate of Return (Yacktman) % among Transportation companies is 10.56, based on 761 companies in the industry. Companies in the top quartile (top 25%) have a Forward Rate of Return (Yacktman) % significantly above this median, while those in the bottom quartile fall well below. However, Forward Rate of Return (Yacktman) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Westinghouse Air Brake Technologies's current Forward Rate of Return (Yacktman) % of 20.59% is 95% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward Rate of Return (Yacktman) % mean?
A high Forward Rate of Return (Yacktman) % can signal that a stock is expensive relative to its fundamentals. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Westinghouse Air Brake Technologies and its competitors. For the Transportation industry, the median Forward Rate of Return (Yacktman) % is 10.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Westinghouse Air Brake Technologies's current Forward Rate of Return (Yacktman) % is 20.59%, which is 90% above median its own 10-year median of 10.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Westinghouse Air Brake Technologies stock overvalued right now?
Based on GuruFocus' analysis, Westinghouse Air Brake Technologies (WAB) is currently considered Modestly Overvalued. The stock's GF Value™ is $226.75, compared to a current price of $282.86 — trading 24.7% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 20.59%, which is 90% above median its 10-year median of 10.84 and 95% above the Transportation industry median of 10.56. Westinghouse Air Brake Technologies' overall GF Score™ is 87/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward Rate of Return (Yacktman) % calculated?
Forward Rate of Return (Yacktman) % is calculated from a company's financial statements. For Westinghouse Air Brake Technologies (WAB), the current Forward Rate of Return (Yacktman) % is 20.59% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Westinghouse Air Brake Technologies (WAB) Overvalued in 2026?
Based on GuruFocus' analysis, Westinghouse Air Brake Technologies stock appears to be overvalued.
The current stock price of $282.86 is trading 24.7% above its estimated GF Value™ of $226.75.
GuruFocus considers Westinghouse Air Brake Technologies to be Modestly Overvalued.
Key valuation signals for WAB:
Forward Rate of Return (Yacktman) %: 20.59% (90% above median its 10-year median of 10.84)
GF Value™: $226.75 vs. price of $282.86 (24.7% above fair value)
Industry Position: 95% above the Transportation median (#191 of 761)
No single metric tells the full story. See the WAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Westinghouse Air Brake Technologies Corp provides value-added, technology-based products and services for the freight rail and passenger transit industries and the mining, marine, and industrial markets. It provides its products and services through two main business segments: Freight and Transit. The company generates maximum revenue from the Freight segment, which manufactures new and modernized locomotives, provides aftermarket parts and services to existing locomotives, provides components to new and existing freight cars; builds new commuter locomotives; supplies rail control and infrastructure products, including electronics, positive train control equipment, signal design, and engineering services. Geographically, it generates a majority of its revenue from the United States.
87GF Score
Get the complete analysis for WAB
Forward Rate of Return (Yacktman) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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