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 25.13 is considered Undervalued compared with the five-year average of 27.25. The fair price of Waste Management Inc (WM) is between 241.18 to 262.82 according to relative valuation methord. Compared to the current price of 201.92 USD , Waste Management Inc is Undervalued By 16.28%.
Relative Value
Fair Zone
241.18-262.82
Current Price：201.92
16.28%
Undervalued
25.13
PE
1Y
3Y
5Y
Trailing
Forward
13.04
EV/EBITDA
Waste Management Inc. (WM) has a current EV/EBITDA of 13.04. The 5-year average EV/EBITDA is 14.11. The thresholds are as follows: Strongly Undervalued below 12.26, Undervalued between 12.26 and 13.18, Fairly Valued between 15.03 and 13.18, Overvalued between 15.03 and 15.96, and Strongly Overvalued above 15.96. The current Forward EV/EBITDA of 13.04 falls within the Undervalued range.
20.50
EV/EBIT
Waste Management Inc. (WM) has a current EV/EBIT of 20.50. The 5-year average EV/EBIT is 21.95. The thresholds are as follows: Strongly Undervalued below 19.35, Undervalued between 19.35 and 20.65, Fairly Valued between 23.25 and 20.65, Overvalued between 23.25 and 24.56, and Strongly Overvalued above 24.56. The current Forward EV/EBIT of 20.50 falls within the Undervalued range.
201.92
PS
Waste Management Inc. (WM) has a current PS of 201.92. The 5-year average PS is 4.65. The thresholds are as follows: Strongly Undervalued below -26.99, Undervalued between -26.99 and -11.17, Fairly Valued between 20.46 and -11.17, Overvalued between 20.46 and 36.28, and Strongly Overvalued above 36.28. The current Forward PS of 201.92 falls within the Strongly Overvalued range.
12.54
P/OCF
Waste Management Inc. (WM) has a current P/OCF of 12.54. The 5-year average P/OCF is 14.40. The thresholds are as follows: Strongly Undervalued below 12.06, Undervalued between 12.06 and 13.23, Fairly Valued between 15.56 and 13.23, Overvalued between 15.56 and 16.73, and Strongly Overvalued above 16.73. The current Forward P/OCF of 12.54 falls within the Undervalued range.
22.71
P/FCF
Waste Management Inc. (WM) has a current P/FCF of 22.71. The 5-year average P/FCF is 32.61. The thresholds are as follows: Strongly Undervalued below 21.53, Undervalued between 21.53 and 27.07, Fairly Valued between 38.16 and 27.07, Overvalued between 38.16 and 43.70, and Strongly Overvalued above 43.70. The current Forward P/FCF of 22.71 falls within the Undervalued range.
Waste Management Inc (WM) has a current Price-to-Book (P/B) ratio of 8.55. Compared to its 3-year average P/B ratio of 10.38 , the current P/B ratio is approximately -17.67% higher. Relative to its 5-year average P/B ratio of 9.62, the current P/B ratio is about -11.14% higher. Waste Management Inc (WM) has a Forward Free Cash Flow (FCF) yield of approximately 0.03%. Compared to its 3-year average FCF yield of 2.47%, the current FCF yield is approximately -98.80% lower. Relative to its 5-year average FCF yield of 2.99% , the current FCF yield is about -99.01% lower.
8.55
P/B
Median3y
10.38
Median5y
9.62
0.03
FCF Yield
Median3y
2.47
Median5y
2.99
Competitors Valuation Multiple
The average P/S ratio for WM's competitors is 155.00, providing a benchmark for relative valuation. Waste Management Inc Corp (WM) exhibits a P/S ratio of 201.92, which is 30.27% 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 decreased by 11.23% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 5.61B to 6.44B.
The secondary factor is the P/E Change, contributed 4.82%to the performance.
Overall, the performance of WM in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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