WM Relative Valuation
WM'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, WM is overvalued; if below, it's undervalued.
Historical Valuation
Waste Management Inc (WM) is now in the Undervalued zone, suggesting that its current forward PE ratio of 26.63 is considered Undervalued compared with the five-year average of 27.24. The fair price of Waste Management Inc (WM) is between 245.58 to 267.26 according to relative valuation methord. Compared to the current price of 214.19 USD , Waste Management Inc is Undervalued By 12.78%.
Relative Value
Fair Zone
245.58-267.26
Current Price：214.19
12.78%
Undervalued
26.63
PE
1Y
3Y
5Y
Trailing
Forward
13.84
EV/EBITDA
Waste Management Inc. (WM) has a current EV/EBITDA of 13.84. The 5-year average EV/EBITDA is 14.11. The thresholds are as follows: Strongly Undervalued below 12.30, Undervalued between 12.30 and 13.21, Fairly Valued between 15.02 and 13.21, Overvalued between 15.02 and 15.93, and Strongly Overvalued above 15.93. The current Forward EV/EBITDA of 13.84 falls within the Historic Trend Line -Fairly Valued range.
21.74
EV/EBIT
Waste Management Inc. (WM) has a current EV/EBIT of 21.74. The 5-year average EV/EBIT is 21.96. The thresholds are as follows: Strongly Undervalued below 19.39, Undervalued between 19.39 and 20.68, Fairly Valued between 23.25 and 20.68, Overvalued between 23.25 and 24.53, and Strongly Overvalued above 24.53. The current Forward EV/EBIT of 21.74 falls within the Historic Trend Line -Fairly Valued range.
3.31
PS
Waste Management Inc. (WM) has a current PS of 3.31. The 5-year average PS is 3.37. The thresholds are as follows: Strongly Undervalued below 2.81, Undervalued between 2.81 and 3.09, Fairly Valued between 3.65 and 3.09, Overvalued between 3.65 and 3.93, and Strongly Overvalued above 3.93. The current Forward PS of 3.31 falls within the Historic Trend Line -Fairly Valued range.
13.46
P/OCF
Waste Management Inc. (WM) has a current P/OCF of 13.46. The 5-year average P/OCF is 14.38. The thresholds are as follows: Strongly Undervalued below 12.04, Undervalued between 12.04 and 13.21, Fairly Valued between 15.55 and 13.21, Overvalued between 15.55 and 16.72, and Strongly Overvalued above 16.72. The current Forward P/OCF of 13.46 falls within the Historic Trend Line -Fairly Valued range.
24.65
P/FCF
Waste Management Inc. (WM) has a current P/FCF of 24.65. The 5-year average P/FCF is 32.52. The thresholds are as follows: Strongly Undervalued below 21.39, Undervalued between 21.39 and 26.96, Fairly Valued between 38.09 and 26.96, Overvalued between 38.09 and 43.66, and Strongly Overvalued above 43.66. The current Forward P/FCF of 24.65 falls within the Undervalued range.
Waste Management Inc (WM) has a current Price-to-Book (P/B) ratio of 9.06. Compared to its 3-year average P/B ratio of 10.37 , the current P/B ratio is approximately -12.54% higher. Relative to its 5-year average P/B ratio of 9.64, the current P/B ratio is about -6.00% higher. Waste Management Inc (WM) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.47%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.98% , the current FCF yield is about -100.00% lower.
9.06
P/B
Median3y
10.37
Median5y
9.64
2.76
FCF Yield
Median3y
2.47
Median5y
2.98
Competitors Valuation Multiple
The average P/S ratio for WM's competitors is , providing a benchmark for relative valuation. Waste Management Inc Corp (WM) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 14.87%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of WM increased by 6.15% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 27.60 to 33.73.
The secondary factor is the Revenue Growth, contributed 14.87%to the performance.
Overall, the performance of WM in the past 1 year is driven by P/E Change. Which is more unsustainable.
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