Republic Services Valuation

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

Valuation Score

2/6

Valuation 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 ($186.81) is trading below our estimate of fair value ($188.92)

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?

Other financial metrics that can be useful for relative valuation.

RSG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.7x
Enterprise Value/EBITDA15.9x
PEG Ratio4.4x

Price to Earnings Ratio vs Peers

How does RSG's PE Ratio compare to its peers?

The above table shows the PE ratio for RSG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average42.5x
WCN Waste Connections
53.7x16.9%US$42.7b
WM Waste Management
33.8x9.8%US$83.8b
ROL Rollins
50.7x11.3%US$22.4b
VLTO Veralto
31.6x6.6%US$25.2b
RSG Republic Services
32.7x7.5%US$58.8b

Price-To-Earnings vs Peers: RSG is good value based on its Price-To-Earnings Ratio (32.7x) compared to the peer average (42.5x).


Price to Earnings Ratio vs Industry

How does RSG's PE Ratio compare vs other companies in the US Commercial Services Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: RSG is expensive based on its Price-To-Earnings Ratio (32.7x) compared to the US Commercial Services industry average (26.7x).


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.

RSG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.7x
Fair PE Ratio31.6x

Price-To-Earnings vs Fair Ratio: RSG is expensive based on its Price-To-Earnings Ratio (32.7x) compared to the estimated Fair Price-To-Earnings Ratio (31.6x).


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 RSG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$186.81
US$201.92
+8.1%
7.9%US$230.00US$147.00n/a20
May ’25US$186.00
US$201.68
+8.4%
8.0%US$230.00US$147.00n/a19
Apr ’25US$189.83
US$197.72
+4.2%
8.0%US$225.00US$143.00n/a18
Mar ’25US$183.64
US$194.35
+5.8%
9.8%US$215.00US$142.60n/a19
Feb ’25US$173.83
US$170.14
-2.1%
8.8%US$190.00US$133.00n/a19
Jan ’25US$164.91
US$168.45
+2.1%
8.3%US$190.00US$133.00n/a19
Dec ’24US$163.92
US$164.93
+0.6%
7.7%US$182.00US$129.00n/a19
Nov ’24US$148.74
US$165.22
+11.1%
6.9%US$182.00US$129.00n/a18
Oct ’24US$142.51
US$163.44
+14.7%
7.1%US$182.00US$127.00n/a18
Sep ’24US$144.90
US$163.44
+12.8%
7.1%US$182.00US$127.00n/a18
Aug ’24US$152.09
US$162.67
+7.0%
7.5%US$182.00US$127.00n/a18
Jul ’24US$153.17
US$151.94
-0.8%
7.8%US$175.00US$120.00n/a18
Jun ’24US$142.73
US$151.94
+6.5%
7.8%US$175.00US$120.00n/a18
May ’24US$144.98
US$151.72
+4.7%
7.8%US$175.00US$120.00US$186.0018
Apr ’24US$135.22
US$145.82
+7.8%
8.6%US$173.00US$119.00US$189.8317
Mar ’24US$128.62
US$145.56
+13.2%
8.9%US$173.00US$119.00US$183.6416
Feb ’24US$124.79
US$145.31
+16.4%
10.1%US$173.00US$109.00US$173.8316
Jan ’24US$128.99
US$149.69
+16.0%
9.4%US$173.00US$109.00US$164.9116
Dec ’23US$139.75
US$149.38
+6.9%
9.4%US$173.00US$109.00US$163.9216
Nov ’23US$131.18
US$149.19
+13.7%
9.8%US$173.00US$106.00US$148.7416
Oct ’23US$136.04
US$153.50
+12.8%
9.7%US$175.00US$106.00US$142.5116
Sep ’23US$143.97
US$152.75
+6.1%
9.8%US$175.00US$106.00US$144.9016
Aug ’23US$137.73
US$142.25
+3.3%
8.6%US$156.00US$101.00US$152.0916
Jul ’23US$133.04
US$143.13
+7.6%
9.0%US$156.00US$101.00US$153.1715
Jun ’23US$133.97
US$143.80
+7.3%
9.1%US$156.00US$101.00US$142.7315
May ’23US$134.27
US$139.53
+3.9%
9.2%US$152.00US$100.00US$144.9815

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


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