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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Waste Management Inc. To summarize, we found that Waste Management Inc ranked in the 33th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 39.83%. In terms of the factors that were most noteworthy in this DCF analysis for WM, they are:
Interest coverage, a measure of earnings relative to interest payments, is 5.43; that's higher than 57.59% of US stocks in the Industrials sector that have positive free cash flow.
Waste Management Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than just 19.11% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as WM, try HON, UNP, DCI, PATI, and TXT.
Republic Services (RSG), along with Waste Management (WM), have been long-term compounders when it comes to creating shareholder value. Besides Municipalities, the two companies have captured the two largest chunks of the sector's market share, effectively operating in an oligopolistic market. Further, they are operating in a sector with high...
Nikolaos Sismanis on Seeking Alpha | September 23, 2020
Background: GFL Environmental (GFL) is a waste management company that is the fourth largest diversified environmental services company in North America and was founded in 2007 in Canada. GFL’s strategy is to roll up or acquire other smaller companies in hope of achieving higher efficiencies and operational efficiencies. In many...
ValueTree Capital on Seeking Alpha | August 27, 2020
HOUSTON--(BUSINESS WIRE)--Waste Management, Inc. (NYSE: WM) today announced the declaration of a quarterly cash dividend of $0.545 per share payable Sept. 18, 2020 to stockholders of record on Sept. 4, 2020. ABOUT WASTE MANAGEMENT Waste Management, based in Houston, Texas, is the leading provider of comprehensive waste management environmental services in North America. Through its subsidiaries, the Company provides collection, transfer, disposal services, and recycling and resource recovery. I