Using the industry peer median P/E multiple (trailing + forward), Westinghouse Air Brake Technologies Corporation (WAB) has a fair value of $215.40 based on 8 comparable companies in the Railroads industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Westinghouse Air Brake Technologies CorporationWAB | 42,262 | 36.2x | 27.5x |
| Comfort Systems USA, Inc.FIX | 48,506 | 47.6x | 96.1x |
| Old Dominion Freight Line, Inc.ODFL | 39,506 | 39.1x | 39.3x |
| EMCOR Group, Inc.EME | 32,923 | 26.1x | 26.0x |
| Ingersoll Rand Inc.IR | 32,427 | 56.6x | 25.0x |
| Otis Worldwide CorporationOTIS | 30,234 | 22.2x | 19.1x |
| United Airlines Holdings, Inc.UAL | 29,923 | 9.0x | 7.6x |
| Xylem Inc.XYL | 29,148 | 30.5x | 23.7x |
| Verisk Analytics, Inc.VRSK | 25,934 | 28.7x | 28.0x |
| Industry Median | 29.6x | 25.5x | |
| (*) Profit after tax | 1,170 | 1,534 | |
| Equity Value | 34,639 | 39,071 | |
| (/) Outstanding shares | 171 | 171 | |
| Fair Price | $202 | $228 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.