Is Casella Waste Systems, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Casella Waste Systems, Inc. has moved from fair to attractive, indicating a more favorable outlook. The company appears to be undervalued, particularly given its P/E ratio of 203, which is significantly higher than its peers such as Clean Harbors, Inc. with a P/E of 34.32 and Stericycle, Inc. at 81.41. Additionally, the EV to EBITDA ratio stands at 22.63, which reflects a premium compared to the industry averages.
In the context of peer comparison, Casella's valuation metrics suggest it is positioned well against its competitors, although its high P/E ratio raises questions about future earnings growth expectations. The company's recent stock performance has been underwhelming, with a year-to-date return of -18.95% compared to the S&P 500's gain of 13.30%, highlighting a significant divergence in performance. Overall, while Casella Waste Systems, Inc. is currently seen as attractive, its high valuation ratios suggest that investors should proceed with caution.