Waste Management Valuation

Is 0LTG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0LTG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0LTG ($205.72) is trading below our estimate of fair value ($334.25)

Significantly Below Fair Value: 0LTG is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0LTG?

Key metric: As 0LTG is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0LTG. This is calculated by dividing 0LTG's market cap by their current earnings.
What is 0LTG's PE Ratio?
PE Ratio30.9x
EarningsUS$2.64b
Market CapUS$81.63b

Price to Earnings Ratio vs Peers

How does 0LTG's PE Ratio compare to its peers?

The above table shows the PE ratio for 0LTG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21x
RTO Rentokil Initial
24.7x16.5%UK£9.7b
SRP Serco Group
11.3x2.4%UK£1.6b
MTO Mitie Group
11x10.7%UK£1.3b
REL RELX
37x8.1%UK£70.0b
0LTG Waste Management
30.9x10.8%US$81.6b

Price-To-Earnings vs Peers: 0LTG is expensive based on its Price-To-Earnings Ratio (30.9x) compared to the peer average (21x).


Price to Earnings Ratio vs Industry

How does 0LTG's PE Ratio compare vs other companies in the European Commercial Services Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0LTG 30.9xIndustry Avg. 14.3xNo. of Companies14PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0LTG is expensive based on its Price-To-Earnings Ratio (30.9x) compared to the European Commercial Services industry average (14.3x).


Price to Earnings Ratio vs Fair Ratio

What is 0LTG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0LTG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio30.9x
Fair PE Ratio38.8x

Price-To-Earnings vs Fair Ratio: 0LTG is good value based on its Price-To-Earnings Ratio (30.9x) compared to the estimated Fair Price-To-Earnings Ratio (38.8x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0LTG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$205.72
US$231.85
+12.7%
7.3%US$255.00US$181.00n/a20
Jan ’26US$201.81
US$231.85
+14.9%
7.3%US$255.00US$181.00n/a20
Dec ’25US$228.22
US$230.45
+1.0%
7.3%US$255.00US$181.00n/a20
Nov ’25US$214.58
US$229.67
+7.0%
7.6%US$255.00US$174.00n/a21
Oct ’25US$207.44
US$222.71
+7.4%
8.1%US$251.00US$170.00n/a20
Sep ’25US$209.24
US$222.71
+6.4%
8.1%US$251.00US$170.00n/a20
Aug ’25US$204.46
US$222.71
+8.9%
8.1%US$251.00US$170.00n/a20
Jul ’25US$209.16
US$224.01
+7.1%
8.9%US$259.00US$164.00n/a20
Jun ’25US$207.39
US$224.06
+8.0%
9.1%US$259.00US$161.00n/a20
May ’25US$208.34
US$222.43
+6.8%
8.9%US$259.00US$161.00n/a21
Apr ’25US$212.38
US$209.91
-1.2%
8.5%US$256.00US$159.00n/a21
Mar ’25US$205.52
US$207.14
+0.8%
8.0%US$230.00US$159.00n/a22
Feb ’25US$187.80
US$183.33
-2.4%
8.0%US$215.00US$151.00n/a21
Jan ’25US$178.96
US$181.52
+1.4%
7.5%US$203.00US$151.00US$201.8121
Dec ’24US$173.41
US$179.48
+3.5%
7.7%US$203.00US$151.00US$228.2221
Nov ’24US$164.60
US$179.60
+9.1%
8.0%US$203.00US$149.00US$214.5820
Oct ’24US$152.71
US$178.54
+16.9%
7.5%US$202.00US$149.00US$207.4420
Sep ’24US$156.84
US$177.83
+13.4%
7.6%US$202.00US$149.00US$209.2419
Aug ’24US$163.84
US$177.83
+8.5%
7.6%US$202.00US$149.00US$204.4619
Jul ’24US$172.92
US$175.30
+1.4%
7.9%US$200.00US$145.00US$209.1620
Jun ’24US$162.47
US$174.95
+7.7%
8.1%US$200.00US$145.00US$207.3919
May ’24US$165.24
US$173.95
+5.3%
8.0%US$200.00US$145.00US$208.3419
Apr ’24US$162.63
US$168.39
+3.5%
9.2%US$200.00US$138.00US$212.3818
Mar ’24US$148.55
US$166.53
+12.1%
8.4%US$196.00US$138.00US$205.5217
Feb ’24US$154.02
US$167.44
+8.7%
9.3%US$196.00US$129.00US$187.8016
Jan ’24US$156.24
US$171.71
+9.9%
8.7%US$196.00US$129.00US$178.9617

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/08 23:21
End of Day Share Price 2025/01/08 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Waste Management, Inc. is covered by 46 analysts. 11 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David ColemanArgus Research Company
David MantheyBaird
Jonathan WindhamBarclays