Is Waste Management, Inc. overvalued or undervalued?

As of 28 April 2025, Waste Management, Inc. has moved from an attractive to a fair valuation grade, indicating a shift in its perceived value. The company is currently fairly valued based on its financial ratios, with a P/E ratio of 55, a Price to Book Value of 17.25, and an EV to EBITDA of 25.76. In comparison, its peer Republic Services, Inc. has a more favorable P/E ratio of 37.07, suggesting that Waste Management may be overvalued relative to its peers.
The PEG ratio for Waste Management stands at 5.69, which is significantly higher than that of Republic Services at 2.36, further supporting the notion of overvaluation. Additionally, despite a strong return of 16.31% year-to-date compared to the S&P 500's 2.44%, the valuation metrics indicate that the stock may not offer sufficient upside potential at its current price of 234.71.