Intrinsic value of Wabtec - WAB

Previous Close

$109.97

  Intrinsic Value

$91.70

stock screener

  Rating & Target

hold

-17%

Previous close

$109.97

 
Intrinsic value

$91.70

 
Up/down potential

-17%

 
Rating

hold

We calculate the intrinsic value of WAB stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 10.4

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  32.40
  29.66
  27.19
  24.97
  22.98
  21.18
  19.56
  18.11
  16.79
  15.62
  14.55
  13.60
  12.74
  11.96
  11.27
  10.64
  10.08
  9.57
  9.11
  8.70
  8.33
  8.00
  7.70
  7.43
  7.19
  6.97
  6.77
  6.59
  6.43
  6.29
Revenue, $m
  5,140
  6,664
  8,476
  10,593
  13,028
  15,787
  18,875
  22,292
  26,036
  30,102
  34,483
  39,172
  44,162
  49,445
  55,017
  60,872
  67,006
  73,418
  80,108
  87,079
  94,334
  101,878
  109,721
  117,872
  126,342
  135,144
  144,294
  153,807
  163,703
  174,001
Variable operating expenses, $m
  4,219
  5,362
  6,720
  8,307
  10,132
  12,200
  14,515
  17,076
  19,883
  22,930
  25,848
  29,363
  33,103
  37,064
  41,240
  45,629
  50,227
  55,033
  60,048
  65,273
  70,711
  76,367
  82,246
  88,356
  94,704
  101,303
  108,161
  115,292
  122,710
  130,430
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  4,219
  5,362
  6,720
  8,307
  10,132
  12,200
  14,515
  17,076
  19,883
  22,930
  25,848
  29,363
  33,103
  37,064
  41,240
  45,629
  50,227
  55,033
  60,048
  65,273
  70,711
  76,367
  82,246
  88,356
  94,704
  101,303
  108,161
  115,292
  122,710
  130,430
Operating income, $m
  921
  1,302
  1,756
  2,286
  2,896
  3,587
  4,360
  5,216
  6,153
  7,171
  8,635
  9,809
  11,059
  12,382
  13,777
  15,243
  16,779
  18,385
  20,060
  21,805
  23,622
  25,511
  27,475
  29,516
  31,637
  33,841
  36,133
  38,515
  40,993
  43,572
EBITDA, $m
  1,809
  2,346
  2,984
  3,729
  4,586
  5,557
  6,644
  7,847
  9,165
  10,596
  12,138
  13,789
  15,545
  17,405
  19,367
  21,427
  23,587
  25,844
  28,199
  30,653
  33,206
  35,862
  38,623
  41,492
  44,474
  47,572
  50,793
  54,142
  57,625
  61,250
Interest expense (income), $m
  30
  101
  167
  247
  342
  453
  581
  725
  887
  1,066
  1,263
  1,476
  1,706
  1,952
  2,213
  2,490
  2,783
  3,090
  3,411
  3,748
  4,099
  4,464
  4,845
  5,240
  5,652
  6,079
  6,523
  6,985
  7,465
  7,964
  8,483
Earnings before tax, $m
  820
  1,135
  1,509
  1,944
  2,443
  3,006
  3,635
  4,328
  5,087
  5,908
  7,159
  8,103
  9,107
  10,168
  11,286
  12,460
  13,689
  14,973
  16,312
  17,707
  19,158
  20,667
  22,235
  23,865
  25,558
  27,318
  29,148
  31,050
  33,029
  35,089
Tax expense, $m
  221
  307
  407
  525
  660
  812
  981
  1,169
  1,373
  1,595
  1,933
  2,188
  2,459
  2,745
  3,047
  3,364
  3,696
  4,043
  4,404
  4,781
  5,173
  5,580
  6,003
  6,443
  6,901
  7,376
  7,870
  8,384
  8,918
  9,474
Net income, $m
  598
  829
  1,102
  1,419
  1,783
  2,194
  2,653
  3,160
  3,713
  4,313
  5,226
  5,915
  6,648
  7,423
  8,239
  9,096
  9,993
  10,930
  11,908
  12,926
  13,985
  15,087
  16,232
  17,421
  18,657
  19,942
  21,278
  22,667
  24,111
  25,615

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  8,711
  11,295
  14,367
  17,955
  22,081
  26,757
  31,991
  37,783
  44,129
  51,020
  58,445
  66,393
  74,850
  83,806
  93,249
  103,172
  113,569
  124,437
  135,777
  147,591
  159,887
  172,675
  185,968
  199,783
  214,138
  229,058
  244,566
  260,690
  277,463
  294,917
Adjusted assets (=assets-cash), $m
  8,711
  11,295
  14,367
  17,955
  22,081
  26,757
  31,991
  37,783
  44,129
  51,020
  58,445
  66,393
  74,850
  83,806
  93,249
  103,172
  113,569
  124,437
  135,777
  147,591
  159,887
  172,675
  185,968
  199,783
  214,138
  229,058
  244,566
  260,690
  277,463
  294,917
Revenue / Adjusted assets
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
Average production assets, $m
  5,222
  6,771
  8,612
  10,763
  13,236
  16,039
  19,177
  22,649
  26,453
  30,583
  35,034
  39,798
  44,868
  50,237
  55,897
  61,846
  68,078
  74,593
  81,390
  88,472
  95,843
  103,508
  111,477
  119,758
  128,363
  137,306
  146,602
  156,268
  166,323
  176,785
Working capital, $m
  252
  327
  415
  519
  638
  774
  925
  1,092
  1,276
  1,475
  1,690
  1,919
  2,164
  2,423
  2,696
  2,983
  3,283
  3,597
  3,925
  4,267
  4,622
  4,992
  5,376
  5,776
  6,191
  6,622
  7,070
  7,537
  8,021
  8,526
Total debt, $m
  3,091
  4,572
  6,332
  8,388
  10,752
  13,431
  16,431
  19,749
  23,385
  27,334
  31,589
  36,143
  40,989
  46,120
  51,531
  57,217
  63,175
  69,402
  75,900
  82,669
  89,715
  97,042
  104,659
  112,575
  120,801
  129,350
  138,236
  147,475
  157,086
  167,087
Total liabilities, $m
  4,992
  6,472
  8,232
  10,288
  12,652
  15,332
  18,331
  21,650
  25,286
  29,234
  33,489
  38,043
  42,889
  48,021
  53,432
  59,118
  65,075
  71,303
  77,800
  84,570
  91,615
  98,943
  106,560
  114,476
  122,701
  131,250
  140,136
  149,376
  158,986
  168,988
Total equity, $m
  3,720
  4,823
  6,135
  7,667
  9,428
  11,425
  13,660
  16,133
  18,843
  21,785
  24,956
  28,350
  31,961
  35,785
  39,817
  44,055
  48,494
  53,135
  57,977
  63,021
  68,272
  73,732
  79,408
  85,307
  91,437
  97,808
  104,429
  111,315
  118,477
  125,930
Total liabilities and equity, $m
  8,712
  11,295
  14,367
  17,955
  22,080
  26,757
  31,991
  37,783
  44,129
  51,019
  58,445
  66,393
  74,850
  83,806
  93,249
  103,173
  113,569
  124,438
  135,777
  147,591
  159,887
  172,675
  185,968
  199,783
  214,138
  229,058
  244,565
  260,691
  277,463
  294,918
Debt-to-equity ratio
  0.830
  0.950
  1.030
  1.090
  1.140
  1.180
  1.200
  1.220
  1.240
  1.250
  1.270
  1.270
  1.280
  1.290
  1.290
  1.300
  1.300
  1.310
  1.310
  1.310
  1.310
  1.320
  1.320
  1.320
  1.320
  1.320
  1.320
  1.320
  1.330
  1.330
Adjusted equity ratio
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  598
  829
  1,102
  1,419
  1,783
  2,194
  2,653
  3,160
  3,713
  4,313
  5,226
  5,915
  6,648
  7,423
  8,239
  9,096
  9,993
  10,930
  11,908
  12,926
  13,985
  15,087
  16,232
  17,421
  18,657
  19,942
  21,278
  22,667
  24,111
  25,615
Depreciation, amort., depletion, $m
  889
  1,044
  1,228
  1,443
  1,690
  1,970
  2,284
  2,631
  3,012
  3,425
  3,503
  3,980
  4,487
  5,024
  5,590
  6,185
  6,808
  7,459
  8,139
  8,847
  9,584
  10,351
  11,148
  11,976
  12,836
  13,731
  14,660
  15,627
  16,632
  17,679
Funds from operations, $m
  1,487
  1,872
  2,329
  2,862
  3,473
  4,165
  4,937
  5,791
  6,725
  7,738
  8,729
  9,895
  11,135
  12,446
  13,829
  15,280
  16,801
  18,390
  20,047
  21,773
  23,570
  25,438
  27,379
  29,397
  31,494
  33,673
  35,938
  38,293
  40,744
  43,293
Change in working capital, $m
  62
  75
  89
  104
  119
  135
  151
  167
  183
  199
  215
  230
  245
  259
  273
  287
  301
  314
  328
  342
  355
  370
  384
  399
  415
  431
  448
  466
  485
  505
Cash from operations, $m
  1,425
  1,798
  2,241
  2,758
  3,354
  4,030
  4,786
  5,624
  6,542
  7,539
  8,515
  9,665
  10,890
  12,188
  13,556
  14,994
  16,500
  18,076
  19,719
  21,432
  23,214
  25,068
  26,995
  28,998
  31,079
  33,242
  35,490
  37,827
  40,259
  42,789
Maintenance CAPEX, $m
  -394
  -522
  -677
  -861
  -1,076
  -1,324
  -1,604
  -1,918
  -2,265
  -2,645
  -3,058
  -3,503
  -3,980
  -4,487
  -5,024
  -5,590
  -6,185
  -6,808
  -7,459
  -8,139
  -8,847
  -9,584
  -10,351
  -11,148
  -11,976
  -12,836
  -13,731
  -14,660
  -15,627
  -16,632
New CAPEX, $m
  -1,277
  -1,549
  -1,841
  -2,151
  -2,473
  -2,803
  -3,138
  -3,472
  -3,804
  -4,131
  -4,451
  -4,764
  -5,070
  -5,368
  -5,661
  -5,948
  -6,232
  -6,515
  -6,797
  -7,082
  -7,371
  -7,666
  -7,968
  -8,281
  -8,605
  -8,943
  -9,296
  -9,666
  -10,054
  -10,463
Cash from investing activities, $m
  -1,671
  -2,071
  -2,518
  -3,012
  -3,549
  -4,127
  -4,742
  -5,390
  -6,069
  -6,776
  -7,509
  -8,267
  -9,050
  -9,855
  -10,685
  -11,538
  -12,417
  -13,323
  -14,256
  -15,221
  -16,218
  -17,250
  -18,319
  -19,429
  -20,581
  -21,779
  -23,027
  -24,326
  -25,681
  -27,095
Free cash flow, $m
  -246
  -273
  -278
  -254
  -195
  -97
  45
  234
  473
  763
  1,005
  1,398
  1,841
  2,332
  2,871
  3,456
  4,083
  4,753
  5,462
  6,211
  6,996
  7,818
  8,676
  9,569
  10,498
  11,462
  12,463
  13,501
  14,578
  15,694
Issuance/(repayment) of debt, $m
  1,221
  1,481
  1,760
  2,056
  2,364
  2,680
  2,999
  3,319
  3,636
  3,948
  4,255
  4,554
  4,846
  5,132
  5,411
  5,686
  5,957
  6,227
  6,498
  6,770
  7,046
  7,327
  7,617
  7,916
  8,226
  8,549
  8,886
  9,240
  9,611
  10,001
Issuance/(repurchase) of shares, $m
  313
  274
  210
  113
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,534
  1,755
  1,970
  2,169
  2,364
  2,680
  2,999
  3,319
  3,636
  3,948
  4,255
  4,554
  4,846
  5,132
  5,411
  5,686
  5,957
  6,227
  6,498
  6,770
  7,046
  7,327
  7,617
  7,916
  8,226
  8,549
  8,886
  9,240
  9,611
  10,001
Total cash flow (excl. dividends), $m
  1,287
  1,482
  1,692
  1,915
  2,169
  2,582
  3,044
  3,553
  4,109
  4,711
  5,260
  5,952
  6,687
  7,464
  8,282
  9,142
  10,041
  10,980
  11,960
  12,980
  14,042
  15,145
  16,293
  17,485
  18,723
  20,011
  21,349
  22,741
  24,188
  25,695
Retained Cash Flow (-), $m
  -911
  -1,103
  -1,312
  -1,532
  -1,762
  -1,997
  -2,235
  -2,473
  -2,710
  -2,942
  -3,171
  -3,394
  -3,611
  -3,824
  -4,032
  -4,237
  -4,440
  -4,641
  -4,842
  -5,045
  -5,250
  -5,460
  -5,676
  -5,899
  -6,130
  -6,370
  -6,622
  -6,885
  -7,162
  -7,453
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  19
  26
  33
  42
  53
  65
  79
  94
  111
  130
  151
  172
  196
  221
  247
  275
  304
  335
  367
  401
  435
  472
  509
  549
  589
  632
  676
  721
  769
  819
Cash available for distribution, $m
  376
  378
  381
  383
  407
  586
  809
  1,080
  1,399
  1,769
  2,089
  2,558
  3,075
  3,640
  4,250
  4,904
  5,601
  6,340
  7,118
  7,936
  8,791
  9,685
  10,617
  11,586
  12,594
  13,640
  14,727
  15,855
  17,026
  18,242
Discount rate, %
  7.50
  7.88
  8.27
  8.68
  9.12
  9.57
  10.05
  10.55
  11.08
  11.63
  12.22
  12.83
  13.47
  14.14
  14.85
  15.59
  16.37
  17.19
  18.05
  18.95
  19.90
  20.89
  21.94
  23.04
  24.19
  25.40
  26.67
  28.00
  29.40
  30.87
PV of cash for distribution, $m
  350
  325
  300
  275
  263
  338
  414
  484
  543
  588
  588
  601
  595
  571
  533
  483
  425
  365
  304
  247
  194
  149
  111
  80
  56
  38
  25
  16
  10
  6
Current shareholders' claim on cash, %
  97.1
  95.2
  94.1
  93.6
  93.6
  93.6
  93.6
  93.6
  93.6
  93.6
  93.6
  93.6
  93.6
  93.6
  93.6
  93.6
  93.6
  93.6
  93.6
  93.6
  93.6
  93.6
  93.6
  93.6
  93.6
  93.6
  93.6
  93.6
  93.6
  93.6

Westinghouse Air Brake Technologies Corporation (Wabtec), doing business as Wabtec Corporation, is a provider of technology-based equipment and services for the global freight and transit rail industries. The Company's segments include the Freight Segment and the Transit Segment. The Freight Segment primarily manufactures and services components for new and existing freight cars and locomotives, builds new switcher locomotives, rebuilds freight locomotives, supplies railway electronics, positive train control equipment, signal design and engineering services, and provides related heat exchange and cooling systems. The Transit Segment primarily manufactures and services components for new and existing passenger transit vehicles, typically regional trains, high speed trains, subway cars, light-rail vehicles and buses, builds new commuter locomotives, refurbishes subway cars, provides heating, ventilation, and air conditioning equipment, and doors for buses and subways.

FINANCIAL RATIOS  of  Wabtec (WAB)

Valuation Ratios
P/E Ratio 34.4
Price to Sales 3.6
Price to Book 4.8
Price to Tangible Book
Price to Cash Flow 23.4
Price to Free Cash Flow 26.3
Growth Rates
Sales Growth Rate -11.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 2%
Cap. Spend. - 3 Yr. Gr. Rate 4%
Financial Strength
Quick Ratio 3
Current Ratio 0.6
LT Debt to Equity 79.9%
Total Debt to Equity 85.8%
Interest Coverage 15
Management Effectiveness
Return On Assets 6.7%
Ret/ On Assets - 3 Yr. Avg. 10.3%
Return On Total Capital 9.4%
Ret/ On T. Cap. - 3 Yr. Avg. 14.1%
Return On Equity 15.6%
Return On Equity - 3 Yr. Avg. 19.7%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 31.5%
Gross Margin - 3 Yr. Avg. 31.3%
EBITDA Margin 17.5%
EBITDA Margin - 3 Yr. Avg. 18.8%
Operating Margin 15.6%
Oper. Margin - 3 Yr. Avg. 17.1%
Pre-Tax Margin 14.1%
Pre-Tax Margin - 3 Yr. Avg. 16.2%
Net Profit Margin 10.4%
Net Profit Margin - 3 Yr. Avg. 11.3%
Effective Tax Rate 24.2%
Eff/ Tax Rate - 3 Yr. Avg. 28.9%
Payout Ratio 10.5%

WAB stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the WAB stock intrinsic value calculation we used $3882 million for the last fiscal year's total revenue generated by Wabtec. The default revenue input number comes from 2017 income statement of Wabtec. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our WAB stock valuation model: a) initial revenue growth rate of 32.4% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.5%, whose default value for WAB is calculated based on our internal credit rating of Wabtec, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Wabtec.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of WAB stock the variable cost ratio is equal to 84.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for WAB stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Wabtec.

Corporate tax rate of 27% is the nominal tax rate for Wabtec. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the WAB stock is equal to 0.5%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for WAB are equal to 101.6%.

Life of production assets of 10 years is the average useful life of capital assets used in Wabtec operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for WAB is equal to 4.9%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $2809 million for Wabtec - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 95 million for Wabtec is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Wabtec at the current share price and the inputted number of shares is $10.4 billion.

RELATED COMPANIES Price Int.Val. Rating
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COMPANY NEWS

▶ Wabtec: 2Q Earnings Snapshot   [08:23AM  Associated Press]
▶ Westinghouse Air Brake's Earnings Preview   [Jul-23-18 04:14PM  Benzinga]
▶ Wabtec opens conversation with potential suppliers   [Jul-10-18 02:44PM  American City Business Journals]
▶ General Electric Is Breaking Up, After All   [Jun-27-18 08:58AM  Motley Fool]
▶ General Electric Tees Up Another Asset Sale   [Jun-25-18 04:20PM  Motley Fool]
▶ GE secures new locomotive order, work coming to Fort Worth   [Jun-21-18 11:16AM  American City Business Journals]
▶ General Electric Companys Dividend Will Be Fine Probably   [Jun-15-18 12:30PM  InvestorPlace]
▶ Wabtec announces new financing as it readies for merger with GE Transportation   [Jun-13-18 01:14PM  American City Business Journals]
▶ Wabtec Announces New Financing Arrangements   [09:00AM  GlobeNewswire]
▶ Asset Sales Will Help GE Fix Its Balance Sheet   [Jun-05-18 07:49AM  Motley Fool]
▶ The Bull and Bear Case for GE   [Jun-04-18 01:02PM  Motley Fool]
▶ 3 Reasons to Avoid General Electric Company Stock   [May-29-18 07:27PM  InvestorPlace]
▶ Wabtec Stock Pays Off For American Century Ultra Mutual Fund   [May-24-18 04:07PM  Investor's Business Daily]
▶ Union Pacific Chief Praises GE-Wabtec Railroad Deal   [May-23-18 05:49PM  The Wall Street Journal]
▶ Wabtec-GE merger rolls in more than just railroad equipment   [May-22-18 01:32PM  American City Business Journals]
▶ General Electric deal with Wabtec   [May-21-18 05:27PM  Yahoo Finance Video]
▶ Monday Madness: GE, China, and Micron   [05:17PM  TheStreet.com]
▶ GE Is Haunted by Its Sprawl   [04:52PM  Bloomberg]
▶ What Happened in the Stock Market Today   [04:52PM  Motley Fool]
▶ Here's what GE deal will mean for Wabtec's standing globally   [04:48PM  American City Business Journals]
▶ Six Pittsburgh-area companies on 2018's Fortune 500 list   [02:38PM  American City Business Journals]
▶ GE to merge transportation unit with Wabtec in $11B deal   [10:30AM  American City Business Journals]
▶ Stock Futures Climb On Trade War Hiatus, GE-Wabtec Merger Buzz   [08:10AM  Investor's Business Daily]
▶ Bob Wright on GE Transportation merger with Wabtec   [08:10AM  Fox Business Videos]
▶ In $10B deal, Wabtec will merge into GE transportation division   [07:47AM  American City Business Journals]
▶ GE reaches deal to merge with Wabtec   [07:05AM  CNBC Videos]
▶ GE nears $20 billion deal with Wabtec   [06:03AM  CNBC Videos]
▶ Reports: GE in talks to sell transportation unit to rail-parts supplier   [04:53PM  American City Business Journals]
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