Wabtec Corp
WABAbove valueExpectations · demandingHeld by 5 superinvestors.
SEC 10-K · fundamentals
Business quality
as of 2025-12-31Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.
- Revenue growth
- +7.5%
- Net margin
- 10.5%
- ROE
- 10.5%
- FCF margin
- 13.4%
Valuation · value band
Above fair value
Zero-growth floor
$55
Central IV
$70
Optimistic top
$81
Wabtec Corp (WAB): A conservative value band $55–$81 / sh (zero-growth floor to growth-capped optimistic top); central read about $70. Today’s price sits above that band (price $301 as of 2026-08-26).
The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.
Revenue growth 0% (lower of historical trend and fundamental cap, capped by moat) · moat 10 yr · discount 11.3% · Zero-growth downside $55
Price as of 2026-08-26 · yahoo · DGS10 4.7% @ 2026-08-26.
Method & numbers
A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.
Owner-earnings DCF $61.88 – $80.05 · Greenwald zero-growth $80.86 · zero-growth base $80.86 · reproduction $25.69
Moat Franchise (moat) · terminal value 34% of present value · owner-earnings yield 3% vs 10Y 4.7%.
Graham earnings-power value (normalized NOPAT)$54.87 – $74.79 / sh
Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.
Years: TTM 2026-06-30, 2024, 2023, 2022, 2021
v1 simplifications: Maintenance capex (degraded) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Maintenance-capex methods diverge by 306% (> 50%); estimate is degraded. Share-based compensation is left as a real expense (not added back).
Buffett owner-earnings value$67.06 – $80.86 / sh
Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 9.7–11.7% band (9–11% base + 0.7pp leverage premium). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).
Years: TTM 2026-06-30, 2024, 2023, 2022, 2021
v1 simplifications: Owner earnings = net income + D&A − maintenance capex (degraded); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). Maintenance-capex methods diverge by 306% (> 50%); estimate is degraded. One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% base band plus a 0.7pp leverage premium (cost of equity rises with leverage — MM Proposition II). Net debt is about 4.4 years of owner earnings, adding 0.7pp of cost-of-equity risk premium.
Reproduction value = tangible net assets $-3.51B + capitalized R&D $505.60M（FY 2026, 2024, 2023, 2022） = $25.69 / sh. Reproduction value = intangible-inclusive net reproduction (tangible net assets + acquired-intangible reset proxy + capitalized R&D), ÷ diluted shares; tangible net assets alone are negative for this asset-light franchise.
Moat reading: Franchise test compares earnings power (EPV) against reproduction value (tangible net assets + capitalized R&D). EPV well above reproduction value signals a moat; near it, a commodity; below it, value destruction. A directional reading, not a verdict.
Assumes a narrow moat · competitive-advantage period ≈ 10 years.
Growth value not assessable — No positive growth reinvestment in the matured window, so ROIIC cannot be computed.
Window TTM 2026-06-30, FY 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 21% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.
Baseline 9%–11%, net debt ≈ 4.4 years of owner earnings → +0.7pp cost-of-equity premium → effective 9.7%–11.7%.
Owner-earnings DCF: growth g₁ 0% · OE FY TTM 2026-06-30, 2024, 2023, 2022, 2021 · Discount band: 9.87%–12.71% (DGS10 +4.5% to a 12% strict end, each +0.71pp for leverage premium, as of 2026-08-26). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp.
Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.
What the price is betting
Today's price pencils in about 29.0% a year in owner-earnings for the next few years. Revenue actually grew 8.8% a year.
The market wants it well ahead of its own track record.
SEC 13F · holders
Superinvestors Holding This Security
5 holders · $86.9M combined · this quarter +1 opened / -1 exited
- Value$51.0MWeight (prev→now)0.9% → 0.6% ▼
- Value$17.0MWeight (prev→now)4.2% → 4.9% ▲
- Value$15.3MWeight (prev→now)0.8% → 0.4% ▼
- Value$3.2MWeight (prev→now)New · 0.0%
- Value$510,622Weight (prev→now)0.0% → 0.0% ▲
SEC 13F · notes
Written summary
Written summary
Wabtec Corp (WAB) is held by 5 of the superinvestors tracked on Compounder, with a combined $86.9M in reported 13F value. The largest position belongs to Steven Romick, where it makes up 0.6% of the portfolio.
Other notable holders by value include Ronald Muhlenkamp (4.9% of its book), Stanley Druckenmiller (0.4% of its book) and Ray Dalio (0.0% of its book).
Over the latest quarter, 1 of the tracked filers opened a new position in WAB, 2 added to existing ones, 2 trimmed, and 1 sold out entirely.
Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.
SEC 13F · co-ownership
Also held by these investors
Investors holding Wabtec Corp (WAB) also commonly hold →
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- Meta Platforms Inc-Class AMETA3 holders
WAB's price is not below its conservative value band. See current strike-zone stocks
Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-18
Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.
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