Is Casella Waste Systems, Inc. overvalued or undervalued?

As of 18 June 2025, the valuation grade for Casella Waste Systems, Inc. has moved from fair to very expensive, indicating a shift in perception regarding its market valuation. The company is currently considered overvalued. Key ratios reveal a P/E ratio of 203, an EV to EBITDA of 22.63, and a Price to Book Value of 4.78, all of which suggest that the stock is trading at a significant premium compared to its earnings and asset value.
In comparison to peers, Clean Harbors, Inc. has a much lower P/E of 32.01 and an EV to EBITDA of 13.19, highlighting the disparity in valuation between these companies. Additionally, Casella's ROCE stands at a mere 4.17% and ROE at 2.35%, which further underscores concerns about its high valuation relative to its returns. Despite outperforming the S&P 500 over various time frames, the current valuation metrics indicate that Casella Waste Systems, Inc. is overvalued in the market.