Is Waste Management, Inc. overvalued or undervalued?

As of 22 August 2025, Waste Management, Inc. has moved from an attractive to a fair valuation grade. The company appears overvalued based on its current metrics, with a P/E ratio of 55, significantly higher than its peer Republic Services, Inc. at 33.32. Additionally, the EV to EBITDA ratio stands at 25.76, compared to Republic's 16.21, further indicating a premium valuation. The PEG ratio of 5.69 also suggests that the stock may be overvalued relative to its growth prospects.
In terms of peer comparison, Waste Management, Inc. has a fair valuation with a P/E of 50.30, while Republic Services, Inc. shows a more attractive P/E of 33.32. The company's recent stock performance has lagged behind the S&P 500, with a 1-year return of 6.95% compared to the index's 17.14%, reinforcing the notion that the stock may not justify its current price.