Waste Management Inc., FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income attributable to Waste Management, Inc.	1,816)	1,496)	1,670)	1,925)	1,949)
Net (income) loss attributable to noncontrolling interests	1)	—)	1)	(2)	—)
Net noncash charges	2,395)	2,234)	2,123)	1,676)	1,429)
Change in operating assets and liabilities, net of effects of acquisitions and divestitures	126)	(327)	80)	(29)	(198)
Net cash provided by operating activities	4,338)	3,403)	3,874)	3,570)	3,180)
Capital expenditures	(1,904)	(1,632)	(1,818)	(1,694)	(1,509)
New borrowings	7,948)	9,420)	13,237)	812)	1,540)
Debt repayments	(8,404)	(9,629)	(10,088)	(499)	(1,907)
Premiums and other paid on early extinguishment of debt	(211)	(30)	(84)	—)	(8)
Free cash flow to equity (FCFE)	1,767)	1,532)	5,121)	2,189)	1,296)

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).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Waste Management Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Waste Management Inc. FCFE decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.

Waste Management Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	414,586,718
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	1,767)
FCFE per share	4.26
Current share price (P)	142.68
Valuation Ratio
P/FCFE	33.48
Benchmarks

Based on: 10-K (reporting date: 2021-12-31).

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Waste Management Inc., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
No. shares of common stock outstanding¹	414,586,718	423,152,948	424,708,758	423,779,540	433,673,878
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	1,767)	1,532)	5,121)	2,189)	1,296)
FCFE per share³	4.26	3.62	12.06	5.17	2.99
Share price^1, 4	142.68	110.56	124.23	98.84	84.02
Valuation Ratio
P/FCFE⁵	33.48	30.54	10.30	19.13	28.12
Benchmarks
P/FCFE, Industry
Industrials	—	43.78	27.50	—	—

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).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2021 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,767,000,000 ÷ 414,586,718 = 4.26

⁴ Closing price as at the filing date of Waste Management Inc. Annual Report.

⁵ 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 142.68 ÷ 4.26 = 33.48

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Waste Management Inc. P/FCFE ratio increased from 2019 to 2020 and from 2020 to 2021.

Waste Management Inc. (NYSE:WM)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical