Waste Management, Inc. (WM) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-5.6%

$223.37

vs $236.59 price

Levered DCF

$276.51

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.97

Grey zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	32.69×	29.5×	31.48×	28.94×	38.63×	33.31×	29×	19.82×
P/B	8.86×	9.82×	10.51×	9.46×	9.85×	6.69×	6.85×	6.09×
P/S	3.51×	3.67×	3.55×	3.29×	3.91×	3.28×	3.13×	2.56×
EV / EBITDA	21.92×	16.19×	15.43×	14.58×	17.3×	15.43×	14.26×	11.42×
Gross margin	29.1%	29.1%	28.1%	27.2%	26.9%	27.6%	28.4%	28.1%
Operating margin	18.3%	18.8%	18.7%	17.5%	16.8%	16.3%	17.8%	18.3%
Net margin	10.7%	12.4%	11.3%	11.4%	10.1%	9.8%	10.8%	12.9%
Current ratio	0.89×	0.76×	0.9×	0.81×	0.75×	1×	1.97×	0.85×
Debt / equity	2.29×	2.9×	2.35×	2.19×	1.88×	1.85×	1.91×	1.6×
Interest coverage	5.05×	6.94×	7.65×	9.1×	8.24×	5.83×	6.7×	7.53×
Dividend yield	1.5%	1.5%	1.6%	1.7%	1.4%	1.9%	1.8%	2.1%
Payout ratio	49.3%	44.1%	49.3%	48.1%	53.4%	62.0%	52.5%	41.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	27.1%	33.3%	33.4%	32.7%	25.5%	20.1%	23.6%	30.7%
Return on invested capital	8.9%	8.3%	10.0%	9.6%	9.0%	7.4%	8.8%	11.1%
Return on assets	5.9%	6.2%	7.0%	7.1%	6.2%	5.1%	6.0%	8.5%
Free cash flow yield	3.2%	2.7%	2.5%	3.0%	3.5%	3.6%	4.2%	4.9%
Earnings yield	3.1%	3.4%	3.2%	3.5%	2.6%	3.0%	3.5%	5.0%
Enterprise value	$111.2B	$104.5B	$88.3B	$79.4B	$83.5B	$63.1B	$58.3B	$48.2B
Net debt / EBITDA	4.48×	3.64×	2.76×	2.69×	2.75×	3.24×	2.43×	2.36×
Cash conversion cycle (days)	25	18	13	10	17	30	23	24