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 assessment of its worth. The company appears to be undervalued, particularly when considering its P/E ratio of 203, which is significantly higher than the peer average of Clean Harbors, Inc. at 34.32 and Stericycle, Inc. at 81.41. Additionally, the EV to EBITDA ratio stands at 22.63, while its peers show lower ratios, suggesting that Casella may be priced higher relative to its earnings before interest, taxes, depreciation, and amortization.
In comparison to its peers, Casella Waste Systems, Inc. has a notably high P/E ratio, which reflects investor expectations of future growth, but this also raises concerns about potential overvaluation. The company has underperformed against the S&P 500 in recent periods, with a year-to-date return of -18.95% compared to the S&P 500's 13.30%, and a one-year return of -19.32% against the S&P 500's 14.08%. This underperformance may suggest that the market is currently pricing in challenges that the company faces, despite its attractive valuation grade.