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Waste Management Inc (WM)

Fair Value
IndustrialsWaste ManagementUnited States

Fundamental

63

Price

$203.92

Market Cap

$82.52B

Part 1 · What the company is worth

Overview

Waste Management, Inc., through its subsidiaries, provides environmental solutions to residential, commercial, industrial, and municipal customers in the United States, Canada, Western Europe, and internationally. It offers collection services, including picking up and transporting waste and recyclable materials from where it was generated to a transfer station, recovery facility, or disposal site; owns and operates transfer stations; and owns, develops, and operates landfill gas-to-energy facilities that produce renewable electricity and renewable natural gas. It also operates materials processing and commodities recycling services, including cardboard, paper, glass, metals, plastics, construction and demolition materials, and other recycling commodities are recovered for resale or redirected for other purposes; markets and resells recycling commodities; recycling brokerage services, such as managing the marketing of recyclable materials for third parties; and other strategic business solutions. In addition, the company collects recyclable food and yard waste, as well as markets and sells mulch, compost, soil amendments, and renewable energy; offers remediation and construction, and industrial waste services; and manages and markets fly ash. Further, it provides Regulated Waste and Compliance Services (RWCS), which offers compliance programs, as well as collection, processing, and disposal of regulated and specialized waste, including medical, pharmaceutical, and hazardous waste; and Secure Information Destruction (SID) services that include the collection of personal and confidential information for secure destruction and recycling of sorted office paper. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was founded in 1968 and is based in Houston, Texas.

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Direct competitors

Who this company fights with for the same customers

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No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$25.67B

Trailing 12 months (through 6/30/2026)

Net Income

$2.85B

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$2.82B

Total Equity

$9.99B

Total Liabilities

$35.84B

Current Ratio

0.91

Interest Coverage

-

Debt/EBITDA

3.26

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseFairly Valued

Fair Value

$218.39

Current Price

$203.92

Margin of Safety

+6.6%

Fair Value Range

$168.70 - $268.08

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$259.92
Discounted cash flow (DCF):$249.48
Earnings multiple (P/E):$166.11
Graham growth formula:$223.54
Earnings power value (EPV):$110.67
Justified P/B:$154.46
Dividend discount (Gordon):$86.23
P/FFO, funds from operations:$223.00
Mid-cycle earnings:$235.31
Revenue multiple:$181.39
Analyst Consensus:Strong Buy (28B / 11H / 0S)
Last Earnings Surprise:-1.15%

Valuation Metrics

P/E Ratio

28.88

ROE

27.1%

P/B Ratio

8.21

P/FCF

22.81

Gross Margin

40.6%

ROIC

8.8%

Profitability Radar

Value Creation (Economic Moat)

ROIC

8.8%

WACC

6.3%

ROIC − WACC

+2.5 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (18)

  • EPS shows upward trend
  • EPS CAGR 6.30%
  • Price CAGR 11.65%
  • ROIC 8.8%
  • Gross Margin 40.6%
  • P/FCF 22.81
  • Debt/Equity ratio
  • Operating Margin 17.6%
  • Positive Free Cash Flow
  • Current Ratio
  • Debt/EBITDA
  • Return on Tangible Assets
  • ROE 28.9%
  • Revenue Growth 5Y 10.6%
  • Analyst Consensus 72% Buy
  • Earnings Quality (OCF/NI) 2.28
  • Share Dilution 0.2%
  • Piotroski F-Score 8/9

Failed (8)

  • P/B Ratio 8.21
  • CapEx intensity
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Earnings Surprise avg -2.1%
  • PEG Ratio 2.12
  • Net Margin Trend 11.1% vs 11.4%

Unavailable (2)

  • Dividend Payout NaN%
  • Interest Coverage

Piotroski F-Score

8/9

Strong financial health

score
criteria

Earnings Quality

2.28

High quality: earnings backed by cash

Share Dilution

0.2%

Share count is stable

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. James C. Fish Jr.CEO & Director63
Mr. John J. Morris Jr.President55
Mr. David L. ReedCFO & Executive VP47
Ms. Tara J. HemmerExecutive VP & COO52
Mr. John A. CarrollVP & Chief Accounting Officer52
Mr. Johnson VarkeySenior VP & Chief Information Officer52
Mr. Edward A. EglDirector of Investor Relations-
Mr. Charles C. Boettcher J.D.Executive VP of Corporate Development & Chief Legal Officer51
Mr. Charles S. SchwagerVP and Chief Compliance & Ethics Officer-
Ms. Kimberly G. StithSenior VP & Chief Human Resources Officer59

Audit Risk

1

Board Risk

1

Compensation Risk

1

Shareholder Rights Risk

4

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-02-09

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-07-29

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-08-26

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for WM, sourced from Markets Gazette.

  • 4/9/2026POSITIVE
    Here's How Much $1000 Invested In Waste Management 15 Years Ago Would Be Worth Today

    An investment of $1000 in Waste Management Inc. (WM) 15 years ago would have grown to approximately $5,400 today, representing a substantial return on investment. This growth trajectory highlights the company's consistent performance and its resilience in the waste management sector. The stock has demonstrated steady appreciation, outperforming many market benchmarks over the long term. For investors, this underscores the value of holding stable, essential service providers through various economic cycles, suggesting continued potential for capital appreciation and dividend growth.

via Markets Gazette