Is Westinghouse Air Brake Technologies Corporation (NYSE:WAB) Potentially Undervalued?

Westinghouse Air Brake Technologies Corporation (NYSE:WAB) saw significant share price movement during recent months on the NYSE, rising to highs of US$214 and falling to the lows of US$187. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Westinghouse Air Brake Technologies' current trading price of US$191 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Westinghouse Air Brake Technologies’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

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Is Westinghouse Air Brake Technologies Still Cheap?

Great news for investors – Westinghouse Air Brake Technologies is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is $269.54, but it is currently trading at US$191 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Westinghouse Air Brake Technologies’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

See our latest analysis for Westinghouse Air Brake Technologies

What does the future of Westinghouse Air Brake Technologies look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Westinghouse Air Brake Technologies' earnings over the next few years are expected to increase by 39%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since WAB is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on WAB for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy WAB. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

If you want to dive deeper into Westinghouse Air Brake Technologies, you'd also look into what risks it is currently facing. At Simply Wall St, we found 1 warning sign for Westinghouse Air Brake Technologies and we think they deserve your attention.

If you are no longer interested in Westinghouse Air Brake Technologies, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.