Stock Analysis on Net

Waste Management Inc. (NYSE:WM)

$22.49

This company has been moved to the archive! The financial data has not been updated since February 15, 2022.

Price to Book Value (P/BV)
since 2005

Microsoft Excel

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Calculation

Waste Management Inc., P/BV, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of Waste Management Inc. Annual Report.


Share Price Trends
The share price exhibited a generally upward trend over the 17-year period analyzed, increasing from $33.90 in February 2006 to $142.68 in February 2022. Despite some fluctuations, including a decline to $28.63 in February 2009, which may correspond with broader market conditions, the overall increase was substantial. Notably, there were significant rises post-2013, culminating in a peak around 2020 at $124.23 before a slight dip in 2021, and a further rise in 2022.
Book Value Per Share (BVPS) Trends
Book value per share showed moderate growth, rising from $11.20 in February 2006 to a peak of $17.61 in February 2021. However, there was a slight decline to $17.18 by February 2022. The growth in book value per share was steady but modest compared to the share price increase, indicating underlying asset or equity growth but at a slower pace relative to market valuation.
Price-to-Book Value Ratio (P/BV) Trends
The P/BV ratio experienced significant growth, rising from a low of around 2.38 in February 2009 to a high of 8.30 in February 2022. This rising ratio suggests an increasing market premium being assigned to the company’s shares relative to its book value. Elevated P/BV ratios from 2014 onward indicate heightened investor optimism or expectations regarding future growth, profitability, or intangible assets not fully captured by book value. The ratio peaked in 2022, reflecting the highest relative market valuation over book value in the period analyzed.
Overall Insights
The data indicates a company experiencing strong market valuation growth, with share price appreciation outpacing growth in tangible equity value as reflected in BVPS. The widening gap between share price and book value, evident in the rising P/BV ratio, suggests increasing investor confidence or speculative interest. The moderate increase in book value per share reflects a stable asset base with measured growth. The decline in share price during 2009 may reflect economic downturn impacts, mirrored by the lowest P/BV ratio in that year. Following this, a sustained recovery and subsequent growth phase is visible. Recent years show a premium market valuation that might warrant caution regarding potential overvaluation depending on fundamentals.

Comparison to Industry (Industrials)

Waste Management Inc., P/BV, long-term trends, comparison to industry (industrials)

Microsoft Excel

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).