Using the PEG framework with analyst consensus forward EPS growth of 24.7% plus 0.4% dividend yield, Westinghouse Air Brake Technologies Corporation has a fair value of $256.48 based on NTM EPS (FY2026) of $10.38. The current PEG ratio is 0.96.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 24.3% |
| Dividend Yield | +0.4% |
| Adjusted Growth (clamped 8–25%) | 24.7% |
| Fair P/E | 24.7x |
| NTM EPS (FY2026) | $10.38 |
| Fair Value | $256.48 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $6.83 | — | — |
| FY2026E | $10.38 | +52.0% | 8 |
| FY2027E | $11.82 | +13.8% | 9 |
| FY2028E | $13.11 | +11.0% | 5 |
3Y Forward EPS CAGR: 24.3%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $558.0M | $2.96 | — |
| FY2022 | $633.0M | $3.46 | +16.9% |
| FY2023 | $815.0M | $4.54 | +31.2% |
| FY2024 | $1.1B | $6.04 | +33.0% |
| FY2025 | $1.2B | $6.83 | +13.1% |
4Y Historical EPS CAGR: 23.2%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.