Is Casella Waste Systems, Inc. overvalued or undervalued?

As of 17 October 2025, Casella Waste Systems, Inc. has moved from a fair to attractive valuation grade, indicating a more favorable assessment of its worth. The company appears to be undervalued given its current P/E ratio of 203, which is significantly higher than its peers, such as Clean Harbors, Inc. at 34.32 and Stericycle, Inc. at 81.41. Additionally, the EV to EBITDA ratio stands at 22.63, while the industry average is not provided, suggesting a premium valuation relative to its sector.
In comparison to its peers, Casella's return on capital employed (ROCE) is 4.17% and return on equity (ROE) is 2.35%, which are both lower than expected for a company with an attractive valuation grade. The stock has underperformed against the S&P 500, with a year-to-date return of -18.95% compared to the index's 13.30%, reinforcing the notion that the stock may be undervalued despite its high valuation ratios.