Is Westinghouse Air Brake Technologies Corp. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Westinghouse Air Brake Technologies Corp. moved from fair to very expensive, indicating that the stock is overvalued. Key valuation ratios include a P/E ratio of 38, a Price to Book Value of 4.20, and an EV to EBITDA ratio of 21.32, all of which suggest that the company is trading at a premium compared to its peers. For instance, BWX Technologies, Inc. has a P/E of 70.89, but Westinghouse's valuation appears excessive given its lower growth prospects reflected in the PEG ratio of 1.55.
In terms of performance, Westinghouse has underperformed relative to the S&P 500 over the past year, with a return of 9.58% compared to the S&P 500's 17.14%. This underperformance, combined with the high valuation ratios, reinforces the conclusion that the stock is overvalued.