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 36th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Waste Management Inc ended up being:
The company's balance sheet shows it gets 77% of its capital from equity, and 23% of its capital from debt. Notably, its equity weight is greater than 56.56% of US equities in the Industrials sector yielding a positive free cash flow.
Waste Management Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 22.72% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
AQUA, FLS, BV, INFO, and CHRA can be thought of as valuation peers to WM, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.