4 models fit Waste Management Inc. Common Stock and they partly agree: 2 of 4 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
Large premium(i)Silver64
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionWaste Management Inc. Common Stock (WM)
Fair value (4 models)
$105
ACCE price target
$210
Rating
Overvalued
Horizon
12 months
Fair value published on 24 Oct 2026, 16:06 CEST; previously $141 since 17 Oct 2026, 00:00 CEST.
ACCE price target published on 19 Sept 2026, 00:00 CEST.
Rating published on 24 Oct 2026, 16:06 CEST.
Price used: $239 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
127.0% above
-56.0% to fair value
ACCE score
58
out of 100
Analysts
68% buy
28 covering
P/E
33.9x
forward 22.5x
1-year return
+10.8%
Dividend yield
1.54%
Waste Management Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Waste Management operates collection, transfer, and disposal services across municipal solid waste, recycling, and hazardous waste streams, with roughly 20 million customers in North America. The business benefits from high switching costs, long-term municipal contracts, and pricing power that has historically outpaced inflation. Revenue growth is being driven by volume recovery post-pandemic and price increases of 5-7% annually, with a near-term catalyst in the company's ability to pass through higher fuel and labor costs to customers without losing volume. At a forward PE of 23x against an operating margin of 19% and ROE of 29.8%, the valuation reflects a mature, highly profitable business trading at a modest premium to historical averages. The stock is worth examining if you believe waste volumes will remain resilient through an economic slowdown and pricing discipline can be maintained as the company pursues margin expansion toward 20%+.