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. The company appears overvalued based on its current financial metrics. The P/E ratio stands at 38, significantly higher than the peer average of approximately 34, while the EV to EBITDA ratio is 21.32, again above the peer comparison of 19.48. Additionally, the PEG ratio of 1.55 indicates that the stock may not be justified by its growth prospects.
In comparison to its peers, BWX Technologies, Inc. has a much higher P/E ratio of 70.89, indicating a premium valuation, but Westinghouse's metrics suggest it is still overvalued relative to its industry. Over the past year, Westinghouse has returned 2.19%, underperforming the S&P 500's 14.08%, which further supports the conclusion that the stock is not currently a favorable investment.