ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Westinghouse Air Brake Technologies's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 8.11%.
As of today (2026-06-25), Westinghouse Air Brake Technologies's WACC % is 8.83%. Westinghouse Air Brake Technologies's ROC % is 7.52% (calculated using TTM income statement data).
Westinghouse Air Brake Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Westinghouse Air Brake Technologies (WBO:WAB) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Westinghouse Air Brake Technologies's WACC % is 8.83%. Westinghouse Air Brake Technologies's ROC % is 7.52% (calculated using TTM income statement data).
Westinghouse Air Brake Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Westinghouse Air Brake Technologies ROC % Related Terms
Westinghouse Air Brake Technologies ROC % 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.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 (WBO:WAB) has a ROC % of 8.11% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Westinghouse Air Brake Technologies and its competitors.
Is Westinghouse Air Brake Technologies' ROC % too high?
Westinghouse Air Brake Technologies' current ROC % is 8.11%. The Transportation industry median ROC % is 4.69. Westinghouse Air Brake Technologies' value of 8.11% is 72.9% above this industry median. Overall, Westinghouse Air Brake Technologies has a GF Score™ of 89/100, reflecting its overall financial health beyond just this single metric.
How does Westinghouse Air Brake Technologies' ROC % compare to NSC and CSX?
Westinghouse Air Brake Technologies' ROC % of 8.11% can be compared against companies in the Transportation industry. The industry median ROC % is 4.69. Westinghouse Air Brake Technologies' value of 8.11% is 72.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Transportation company?
The median ROC % among Transportation companies is 4.69, based on 994 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Westinghouse Air Brake Technologies's current ROC % of 8.11% is 72.9% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Westinghouse Air Brake Technologies and its competitors. For the Transportation industry, the median ROC % is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Westinghouse Air Brake Technologies's current ROC % is 8.11%. 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?
Westinghouse Air Brake Technologies (WBO:WAB) has a current ROC % of 8.11%. The stock's GF Value™ is €188.62, compared to a current price of €241.80 — trading 28.2% above its estimated fair value. The current ROC % is 8.11% and 72.9% above the Transportation industry median of 4.69. Westinghouse Air Brake Technologies' overall GF Score™ is 89/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Westinghouse Air Brake Technologies (WBO:WAB), the current ROC % is 8.11% as of Mar. 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 (WBO:WAB) Overvalued in 2026?
Based on GuruFocus' analysis, Westinghouse Air Brake Technologies stock appears to be overvalued.
The current stock price of €241.80 is trading 28.2% above its estimated GF Value™ of €188.62.
Key valuation signals for WBO:WAB:
ROC %: 8.11%
GF Value™: €188.62 vs. price of €241.80 (28.2% above fair value)
Industry Position: 72.9% above the Transportation median
No single metric tells the full story. See the WBO:WAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Westinghouse Air Brake Technologies Business Description
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.
89GF Score
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