Discounted Cash Flow

Westinghouse AIR Brake Technologies Corp.

WAB · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $2.9b $304.9m $399.1m 10.4% $3.37
2017 $3.9b (32.4%) $262.3m (-14.0%) $99.3m (-75.1%) 6.8% (-35.0%) $2.74 (-18.7%)
2018 $4.4b (12.4%) $294.9m (12.5%) $221.4m (122.8%) 6.8% (0.0%) $3.06 (11.7%)
2019 $8.2b (87.9%) $326.7m (10.8%) $830.2m (275.0%) 4.0% (-41.1%) $1.91 (-37.6%)
2020 $7.6b (-7.9%) $414.4m (26.8%) $647.3m (-22.0%) 5.5% (37.7%) $2.18 (14.1%)
2021 $7.8b (3.5%) $558.0m (34.7%) $943.0m (45.7%) 7.1% (30.1%) $2.96 (35.8%)
2022 $8.4b (6.9%) $633.0m (13.4%) $889.0m (-5.7%) 7.6% (6.1%) $3.46 (16.9%)
2023 $9.7b (15.7%) $815.0m (28.8%) $1.0b (14.2%) 8.4% (11.3%) $4.54 (31.2%)
2024 $10.4b (7.3%) $1.1b (29.6%) $1.6b (60.3%) 10.2% (20.7%) $6.05 (33.3%)
2025 $11.2b (7.5%) $1.2b (10.8%) $1.5b (-7.9%) 10.5% (3.1%) $6.84 (13.1%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model