Waste Management is a provider of comprehensive waste management services in North America. The company provides collection, transfer, recycling and resource recovery, and disposal services. It is also a leading developer, operator and owner of landfill gas-to-energy facilities in the United States. The company was founded in 1987 and is based in Houston, Texas.
WM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for WM, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Waste Management Inc ranked in the 34th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for WM, they are:
The company's balance sheet shows it gets 79% of its capital from equity, and 21% of its capital from debt. Its equity weight surpasses that of 56.52% of free cash flow generating stocks in the Industrials sector.
Waste Management Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 20.15% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Waste Management Inc? See HEI, MEC, ROP, SXI, and GWW.
HOUSTON--(BUSINESS WIRE)--Waste Management, Inc. (NYSE: WM) today announced financial results for the quarter ended June 30, 2020. Revenues for the second quarter of 2020 were $3.56 billion compared with $3.95 billion for the same 2019 period. Net income for the quarter was $307 million, or $0.72 per diluted share, compared with $381 million, or $0.89 per diluted share, for the second quarter of 2019.(a) On an adjusted basis, net income was $372 million, or $0.88 per diluted share, in the secon