RSG Valuation

Republic Services Inc

Add to Watchlist

Advanced Chart

234.330

+2.11(0.909%)1D

Overview
Forecast
Valuation
Earnings

RSG Relative Valuation

RSG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, RSG is overvalued; if below, it's undervalued.

Historical Valuation

Republic Services Inc (RSG) is now in the Fair zone, suggesting that its current forward PE ratio of 32.35 is considered Fairly compared with the five-year average of 28.42. The fair price of Republic Services Inc (RSG) is between 228.27 to 264.91 according to relative valuation methord.

Relative Value

Fair Zone

228.27-264.91

Current Price：234.33

Fair

32.35

Trailing

Forward

15.67

EV/EBITDA

Republic Services Inc. (RSG) has a current EV/EBITDA of 15.67. The 5-year average EV/EBITDA is 13.73. The thresholds are as follows: Strongly Undervalued below 11.05, Undervalued between 11.05 and 12.39, Fairly Valued between 15.07 and 12.39, Overvalued between 15.07 and 16.42, and Strongly Overvalued above 16.42. The current Forward EV/EBITDA of 15.67 falls within the Overvalued range.

24.39

EV/EBIT

Republic Services Inc. (RSG) has a current EV/EBIT of 24.39. The 5-year average EV/EBIT is 21.64. The thresholds are as follows: Strongly Undervalued below 17.83, Undervalued between 17.83 and 19.74, Fairly Valued between 23.54 and 19.74, Overvalued between 23.54 and 25.45, and Strongly Overvalued above 25.45. The current Forward EV/EBIT of 24.39 falls within the Overvalued range.

4.22

Republic Services Inc. (RSG) has a current PS of 4.22. The 5-year average PS is 3.34. The thresholds are as follows: Strongly Undervalued below 2.31, Undervalued between 2.31 and 2.82, Fairly Valued between 3.85 and 2.82, Overvalued between 3.85 and 4.36, and Strongly Overvalued above 4.36. The current Forward PS of 4.22 falls within the Overvalued range.

18.07

P/OCF

Republic Services Inc. (RSG) has a current P/OCF of 18.07. The 5-year average P/OCF is 14.07. The thresholds are as follows: Strongly Undervalued below 10.35, Undervalued between 10.35 and 12.21, Fairly Valued between 15.94 and 12.21, Overvalued between 15.94 and 17.80, and Strongly Overvalued above 17.80. The current Forward P/OCF of 18.07 falls within the Strongly Overvalued range.

27.07

P/FCF

Republic Services Inc. (RSG) has a current P/FCF of 27.07. The 5-year average P/FCF is 26.83. The thresholds are as follows: Strongly Undervalued below 20.07, Undervalued between 20.07 and 23.45, Fairly Valued between 30.21 and 23.45, Overvalued between 30.21 and 33.59, and Strongly Overvalued above 33.59. The current Forward P/FCF of 27.07 falls within the Historic Trend Line -Fairly Valued range.

Republic Services Inc (RSG) has a current Price-to-Book (P/B) ratio of 6.05. Compared to its 3-year average P/B ratio of 5.27 , the current P/B ratio is approximately 14.94% higher. Relative to its 5-year average P/B ratio of 4.84, the current P/B ratio is about 25.15% higher. Republic Services Inc (RSG) has a Forward Free Cash Flow (FCF) yield of approximately 3.25%. Compared to its 3-year average FCF yield of 3.50%, the current FCF yield is approximately -7.14% lower. Relative to its 5-year average FCF yield of 3.65% , the current FCF yield is about -11.08% lower.

6.05

P/B

Median3y

5.27

Median5y

4.84

3.25

FCF Yield

Median3y

3.50

Median5y

3.65

Competitors Valuation Multiple

The average P/S ratio for RSG's competitors is 3.64, providing a benchmark for relative valuation. Republic Services Inc Corp (RSG) exhibits a P/S ratio of 4.22, which is 15.84% above the industry average. Given its robust revenue growth of 4.62%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

RSG.N

Republic Services Inc

Waste Connections Inc

GFL Environmental Inc

Casella Waste Systems Inc

3.41

23.38%

6.32B

Performance Decomposition

Market capitalization of RSG increased by 12.55% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 32.86 to 34.59.

The secondary factor is the Revenue Growth, contributed 4.62%to the performance.

Overall, the performance of RSG in the past 1 year is driven by P/E Change. Which is more unsustainable.

4.62%

4.05B → 4.24B

Revenue Growth

2.69%

12.65 → 12.99

Margin Expansion

5.24%

32.86 → 34.59

P/E Change

12.55%