Is Waste Management, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Waste Management, Inc. moved from very expensive to fair. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 55, an EV to EBITDA of 25.76, and a PEG ratio of 5.69, which indicate a premium valuation compared to its peers. For instance, Republic Services, Inc. has a P/E of 33.32 and an EV to EBITDA of 16.21, suggesting that Waste Management is trading at a higher valuation relative to its industry counterpart.
Despite the fair valuation, Waste Management's recent stock performance has lagged behind the S&P 500, with a year-to-date return of 6.78% compared to the S&P 500's 13.30%. This trend continues over longer periods, with a 3-year return of 36.54% versus 81.19% for the index, indicating that while the company is fairly valued, its growth has not kept pace with broader market performance.