Is Westinghouse Air Brake Technologies Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Westinghouse Air Brake Technologies Corp. has moved from fair to very expensive. This indicates that the company is overvalued at its current price of 194.15. Key valuation ratios reveal a P/E ratio of 38, a Price to Book Value of 4.20, and an EV to EBITDA of 21.32, all of which are significantly higher than the industry averages and suggest a premium valuation.
In comparison to peers, Westinghouse Air Brake Technologies Corp. has a P/E ratio of 33.99 for BWX Technologies, Inc., which is also considered expensive, but still lower than Westinghouse's current valuation. The PEG ratio of 1.55 further highlights the overvaluation relative to growth expectations. Additionally, while Westinghouse has shown strong returns over the past 3 and 5 years, with 126.28% and 206.57% respectively, it has underperformed the S&P 500 year-to-date and over the past year, which returned 13.30% and 14.08%. This underperformance reinforces the notion that the stock may be overvalued at present.