Discounted Cash Flow

Westinghouse AIR Brake Technologies Corp.

WAB · Based on 10 years of SEC filings · Converted from ZAR to USD

Cash flow predictability 72/100 (stable) — FCF YoY std dev 55%, net income 14% (full history)

Average annual growth rates

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

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 $181.5m $18.9m $24.7m 10.4% $3.37
2017 $240.4m (32.4%) $16.2m (-14.0%) $6.2m (-75.1%) 6.8% (-35.0%) $2.74 (-18.7%)
2018 $270.2m (12.4%) $18.3m (12.5%) $13.7m (122.8%) 6.8% (0.0%) $3.06 (11.7%)
2019 $507.8m (87.9%) $20.2m (10.8%) $51.4m (275.0%) 4.0% (-41.1%) $1.91 (-37.6%)
2020 $467.9m (-7.9%) $25.7m (26.8%) $40.1m (-22.0%) 5.5% (37.7%) $2.18 (14.1%)
2021 $484.4m (3.5%) $34.6m (34.7%) $58.4m (45.7%) 7.1% (30.1%) $2.96 (35.8%)
2022 $517.9m (6.9%) $39.2m (13.4%) $55.1m (-5.7%) 7.6% (6.1%) $3.46 (16.9%)
2023 $599.3m (15.7%) $50.5m (28.8%) $62.9m (14.2%) 8.4% (11.3%) $4.54 (31.2%)
2024 $643.3m (7.3%) $65.4m (29.6%) $100.8m (60.3%) 10.2% (20.7%) $6.05 (33.3%)
2025 $691.6m (7.5%) $72.5m (10.8%) $92.8m (-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:

SEC filings report in ZAR. Values above are converted to USD for comparison with the US-listed share price.

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