Is Casella Waste Systems, Inc. overvalued or undervalued?

As of 7 August 2025, the valuation grade for Casella Waste Systems, Inc. has moved from fair to attractive, indicating a more favorable assessment of its market position. The company appears to be undervalued, particularly when considering its P/E ratio of 203, which is significantly higher than its peer Clean Harbors, Inc. at 34.32, and its EV to EBITDA ratio of 22.63, which is more competitive than the industry average. Additionally, the EV to Sales ratio stands at 5.07, suggesting a strong revenue generation capability relative to its valuation.
In comparison to its peers, Stericycle, Inc. is rated very attractive with a P/E of 81.41, while Clean Harbors, Inc. holds a fair rating with a P/E of 34.32. This highlights that while Casella Waste Systems, Inc. has a high valuation, it may still be positioned favorably against its industry competitors. Notably, the company's stock has underperformed against the S&P 500 in the short term, with a year-to-date return of -16.40% compared to the index's 12.22%, but it has shown resilience over a five-year period with a return of 59.39%, albeit still lagging behind the S&P 500's 96.61% return.