Stock Analysis on Net
Stock Analysis on Net

Waste Management Inc. (NYSE:WM)

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

Common Stock Valuation Ratios (Price Multiples)

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Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).

Current Valuation Ratios

Waste Management Inc., current price multiples

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Waste Management Inc. Industrials
Selected Financial Data
Current share price (P) $142.68
No. shares of common stock outstanding 414,586,718
Growth rate (g) 13.32%
 
Earnings per share (EPS) $4.38
Next year expected EPS $4.96
Operating profit per share $7.15
Sales per share $43.25
Book value per share (BVPS) $17.18
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 32.57 37.50
Price to next year expected earnings 28.74 38.52
Price-earnings-growth (PEG) 2.45 —
Price to operating profit (P/OP) 19.95 24.67
Price to sales (P/S) 3.30 2.43
Price to book value (P/BV) 8.30 6.30

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

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.

Historical Valuation Ratios (Summary)

Waste Management Inc., historical price multiples

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Price to earnings (P/E) 32.57 31.27 31.59 21.76 18.70
Price to operating profit (P/OP) 19.95 19.22 19.50 15.02 13.82
Price to sales (P/S) 3.30 3.07 3.41 2.81 2.52
Price to book value (P/BV) 8.30 6.28 7.46 6.68 6.05

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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Waste Management Inc. P/E ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Waste Management Inc. P/OP ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Waste Management Inc. P/S ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Waste Management Inc. P/BV ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Price to Earnings (P/E)

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

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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$)
Net income attributable to Waste Management, Inc. (in millions) 1,816 1,496 1,670 1,925 1,949
Earnings per share (EPS)2 4.38 3.54 3.93 4.54 4.49
Share price1, 3 142.68 110.56 124.23 98.84 84.02
Valuation Ratio
P/E ratio4 32.57 31.27 31.59 21.76 18.70
Benchmarks
P/E Ratio, Industry
Industrials 32.33 133.33 45.57 — —

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 2021 Calculation
EPS = Net income attributable to Waste Management, Inc. ÷ No. shares of common stock outstanding
= 1,816,000,000 ÷ 414,586,718 = 4.38

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

4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 142.68 ÷ 4.38 = 32.57

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Waste Management Inc. P/E ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Price to Operating Profit (P/OP)

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

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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$)
Income from operations (in millions) 2,965 2,434 2,706 2,789 2,636
Operating profit per share2 7.15 5.75 6.37 6.58 6.08
Share price1, 3 142.68 110.56 124.23 98.84 84.02
Valuation Ratio
P/OP ratio4 19.95 19.22 19.50 15.02 13.82
Benchmarks
P/OP Ratio, Industry
Industrials 21.27 46.07 18.93 — —

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 2021 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= 2,965,000,000 ÷ 414,586,718 = 7.15

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

4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 142.68 ÷ 7.15 = 19.95

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Waste Management Inc. P/OP ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Price to Sales (P/S)

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

Microsoft Excel
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$)
Operating revenues (in millions) 17,931 15,218 15,455 14,914 14,485
Sales per share2 43.25 35.96 36.39 35.19 33.40
Share price1, 3 142.68 110.56 124.23 98.84 84.02
Valuation Ratio
P/S ratio4 3.30 3.07 3.41 2.81 2.52
Benchmarks
P/S Ratio, Industry
Industrials 2.10 2.16 1.84 — —

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 2021 Calculation
Sales per share = Operating revenues ÷ No. shares of common stock outstanding
= 17,931,000,000 ÷ 414,586,718 = 43.25

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

4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 142.68 ÷ 43.25 = 3.30

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Waste Management Inc. P/S ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level.

Price to Book Value (P/BV)

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

Microsoft Excel
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$)
Total Waste Management, Inc. stockholders’ equity (in millions) 7,124 7,452 7,068 6,275 6,019
Book value per share (BVPS)2 17.18 17.61 16.64 14.81 13.88
Share price1, 3 142.68 110.56 124.23 98.84 84.02
Valuation Ratio
P/BV ratio4 8.30 6.28 7.46 6.68 6.05
Benchmarks
P/BV Ratio, Industry
Industrials 5.43 5.92 6.47 — —

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 2021 Calculation
BVPS = Total Waste Management, Inc. stockholders’ equity ÷ No. shares of common stock outstanding
= 7,124,000,000 ÷ 414,586,718 = 17.18

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

4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 142.68 ÷ 17.18 = 8.30

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Waste Management Inc. P/BV ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.