Republic Services Valuation
Is RSG undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
2/6Valuation Score 2/6
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 RSG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: RSG ($212.62) is trading below our estimate of fair value ($224.36)
Significantly Below Fair Value: RSG is trading below fair value, but not by a significant amount.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for RSG?
Key metric: As RSG is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is RSG's PE Ratio? | |
|---|---|
| PE Ratio | 33.5x |
| Earnings | US$1.97b |
| Market Cap | US$66.05b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 5x |
| Enterprise Value/EBITDA | 16.4x |
| PEG Ratio | 5x |
Price to Earnings Ratio vs Peers
How does RSG's PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 41.9x | ||
WCN Waste Connections | 51.2x | 14.9% | US$48.4b |
WM Waste Management | 33.2x | 10.9% | US$87.9b |
ROL Rollins | 51x | 11.6% | US$24.0b |
VLTO Veralto | 32.3x | 9.1% | US$25.7b |
RSG Republic Services | 33.8x | 6.7% | US$66.0b |
Price-To-Earnings vs Peers: RSG is good value based on its Price-To-Earnings Ratio (33.8x) compared to the peer average (41.9x).
Price to Earnings Ratio vs Industry
How does RSG's PE Ratio compare vs other companies in the US Commercial Services Industry?
| 4 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
PGTK Pacific Green Technologies | 3.9x | n/a | US$31.27m |
OMEX Odyssey Marine Exploration | 0.7x | n/a | US$8.30m |
DGWR Deep Green Waste & Recycling | 0.9x | n/a | US$557.97k |
IGOT Fomo Worldwide | 0.00007x | n/a | US$112.00 |
| 4 Companies | Estimated Growth | Market Cap |
|---|
Price-To-Earnings vs Industry: RSG is expensive based on its Price-To-Earnings Ratio (33.8x) compared to the US Commercial Services industry average (30.6x).
Price to Earnings Ratio vs Fair Ratio
What is RSG'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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 33.5x |
| Fair PE Ratio | 32.2x |
Price-To-Earnings vs Fair Ratio: RSG is expensive based on its Price-To-Earnings Ratio (33.8x) compared to the estimated Fair Price-To-Earnings Ratio (32.2x).
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | US$212.62 | US$218.32 +2.7% | 7.8% | US$244.00 | US$159.00 | n/a | 20 |
| Nov ’25 | US$198.58 | US$218.32 +9.9% | 7.8% | US$244.00 | US$159.00 | n/a | 20 |
| Oct ’25 | US$201.28 | US$211.49 +5.1% | 7.3% | US$230.00 | US$157.00 | n/a | 19 |
| Sep ’25 | US$208.21 | US$211.49 +1.6% | 7.3% | US$230.00 | US$157.00 | n/a | 19 |
| Aug ’25 | US$197.54 | US$211.23 +6.9% | 7.5% | US$230.00 | US$157.00 | n/a | 19 |
| Jul ’25 | US$192.88 | US$201.60 +4.5% | 8.1% | US$230.00 | US$147.00 | n/a | 19 |
| Jun ’25 | US$185.19 | US$201.34 +8.7% | 8.0% | US$230.00 | US$147.00 | n/a | 19 |
| May ’25 | US$186.00 | US$201.68 +8.4% | 8.0% | US$230.00 | US$147.00 | n/a | 19 |
| Apr ’25 | US$189.83 | US$197.72 +4.2% | 8.0% | US$225.00 | US$143.00 | n/a | 18 |
| Mar ’25 | US$183.64 | US$194.35 +5.8% | 9.8% | US$215.00 | US$142.60 | n/a | 19 |
| Feb ’25 | US$173.83 | US$170.14 -2.1% | 8.8% | US$190.00 | US$133.00 | n/a | 19 |
| Jan ’25 | US$164.91 | US$168.45 +2.1% | 8.3% | US$190.00 | US$133.00 | n/a | 19 |
| Dec ’24 | US$163.92 | US$164.93 +0.6% | 7.7% | US$182.00 | US$129.00 | n/a | 19 |
| Nov ’24 | US$148.74 | US$165.22 +11.1% | 6.9% | US$182.00 | US$129.00 | US$198.58 | 18 |
| Oct ’24 | US$142.51 | US$163.44 +14.7% | 7.1% | US$182.00 | US$127.00 | US$201.28 | 18 |
| Sep ’24 | US$144.90 | US$163.44 +12.8% | 7.1% | US$182.00 | US$127.00 | US$208.21 | 18 |
| Aug ’24 | US$152.09 | US$162.67 +7.0% | 7.5% | US$182.00 | US$127.00 | US$197.54 | 18 |
| Jul ’24 | US$153.17 | US$151.94 -0.8% | 7.8% | US$175.00 | US$120.00 | US$192.88 | 18 |
| Jun ’24 | US$142.73 | US$151.94 +6.5% | 7.8% | US$175.00 | US$120.00 | US$185.19 | 18 |
| May ’24 | US$144.98 | US$151.72 +4.7% | 7.8% | US$175.00 | US$120.00 | US$186.00 | 18 |
| Apr ’24 | US$135.22 | US$145.82 +7.8% | 8.6% | US$173.00 | US$119.00 | US$189.83 | 17 |
| Mar ’24 | US$128.62 | US$145.56 +13.2% | 8.9% | US$173.00 | US$119.00 | US$183.64 | 16 |
| Feb ’24 | US$124.79 | US$145.31 +16.4% | 10.1% | US$173.00 | US$109.00 | US$173.83 | 16 |
| Jan ’24 | US$128.99 | US$149.69 +16.0% | 9.4% | US$173.00 | US$109.00 | US$164.91 | 16 |
| Dec ’23 | US$139.75 | US$149.38 +6.9% | 9.4% | US$173.00 | US$109.00 | US$163.92 | 16 |
| Nov ’23 | US$131.18 | US$149.19 +13.7% | 9.8% | US$173.00 | US$106.00 | US$148.74 | 16 |
Analyst Forecast: Target price is less than 20% higher than the current share price.