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Waste Management, Inc. – Other Nonhazardous Waste Treatment and Disposal
Waste Management, based in Houston, Texas, is the leading provider of comprehensive waste management environmental services in North America, providing services throughout the United States and Canada. Through its subsidiaries, the Company provides collection, transfer, disposal services, and recycling and resource recovery. It is also a leading developer, operator, and owner of landfill gas-to-energy facilities in the United States. The Company's customers include residential, commercial, industrial, and municipal customers throughout North America.
Analysis Results
Intrinsic Value $169.77
Latest Price $154.51
Relative Value 9% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 3.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 3.6%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 2.06 1.99
2024 2.13 2.0
2025 2.21 2.01
2026 2.29 2.02
2027 2.37 2.04
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 71.1 billion. This corresponds to a present value of 59.2 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 10.1 billion. Adding in the terminal value gives a total present value of 69.3 billion.

There are presently 408.0 million outstanding shares, so the intrinsic value per share is 169.77.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,551,000,000
Current Cash 351,000,000
Current Liabilities 4,394,000,000
Current Debt 414,000,000
Non-Cash Working Capital (NCWC) -780,000,000
Change in NCWC -357,000,000
EBIT 3,361,000,000
Tax Provision 678,000,000
Depreciation and Amortization 2,038,000,000
Capital Expenditure -2,587,000,000
Unlevered Free Cash Flow 1,674,068,540
Current Assets 3,069,000,000
Current Cash 118,000,000
Current Liabilities 4,082,000,000
Current Debt 708,000,000
Non-Cash Working Capital (NCWC) -423,000,000
Change in NCWC -408,000,000
EBIT 2,921,000,000
Tax Provision 532,000,000
Depreciation and Amortization 1,999,000,000
Capital Expenditure -1,904,000,000
Unlevered Free Cash Flow 1,946,453,810
Current Assets 3,540,000,000
Current Cash 553,000,000
Current Liabilities 3,553,000,000
Current Debt 551,000,000
Non-Cash Working Capital (NCWC) -15,000,000
Change in NCWC 263,000,000
EBIT 2,410,000,000
Tax Provision 397,000,000
Depreciation and Amortization 1,671,000,000
Capital Expenditure -1,632,000,000
Unlevered Free Cash Flow 2,206,574,749
Current Assets 6,209,000,000
Current Cash 3,561,000,000
Current Liabilities 3,144,000,000
Current Debt 218,000,000
Non-Cash Working Capital (NCWC) -278,000,000
Change in NCWC -186,000,000
EBIT 2,699,000,000
Tax Provision 434,000,000
Depreciation and Amortization 1,574,000,000
Capital Expenditure -1,818,000,000
Unlevered Free Cash Flow 1,712,531,591
Current Assets 2,645,000,000
Current Cash 61,000,000
Current Liabilities 3,108,000,000
Current Debt 432,000,000
Non-Cash Working Capital (NCWC) -92,000,000
Change in NCWC -171,000,000
EBIT 2,694,000,000
Tax Provision 453,000,000
Depreciation and Amortization 1,477,000,000
Capital Expenditure -1,694,000,000
Unlevered Free Cash Flow 1,792,371,212
Current Assets 2,624,000,000
Current Cash 22,000,000
Current Liabilities 3,262,000,000
Current Debt 739,000,000
Non-Cash Working Capital (NCWC) 79,000,000
Change in NCWC 112,000,000
EBIT 2,552,000,000
Tax Provision 242,000,000
Depreciation and Amortization 1,376,000,000
Capital Expenditure -1,509,000,000
Unlevered Free Cash Flow 2,249,126,882
Current Assets 2,376,000,000
Current Cash 32,000,000
Current Liabilities 2,794,000,000
Current Debt 417,000,000
Non-Cash Working Capital (NCWC) -33,000,000
Change in NCWC -82,000,000
EBIT 2,368,000,000
Tax Provision 642,000,000
Depreciation and Amortization 1,301,000,000
Capital Expenditure -1,339,000,000
Unlevered Free Cash Flow 1,413,611,416
Current Assets 2,345,000,000
Current Cash 39,000,000
Current Liabilities 2,510,000,000
Current Debt 253,000,000
Non-Cash Working Capital (NCWC) 49,000,000
Change in NCWC 110,000,000
EBIT 2,104,000,000
Tax Provision 308,000,000
Depreciation and Amortization 1,245,000,000
Capital Expenditure -1,233,000,000
Unlevered Free Cash Flow 1,614,649,056
Current Assets 3,641,000,000
Current Cash 1,307,000,000
Current Liabilities 3,485,000,000
Current Debt 1,090,000,000
Non-Cash Working Capital (NCWC) -61,000,000
Change in NCWC -214,000,000
EBIT 2,168,000,000
Tax Provision 413,000,000
Depreciation and Amortization 1,292,000,000
Capital Expenditure -1,151,000,000
Unlevered Free Cash Flow 1,583,644,203
Current Assets 2,499,000,000
Current Cash 58,000,000
Current Liabilities 3,014,000,000
Current Debt 726,000,000
Non-Cash Working Capital (NCWC) 153,000,000
Change in NCWC 217,000,000
EBIT 2,036,000,000
Tax Provision 364,000,000
Depreciation and Amortization 1,333,000,000
Capital Expenditure -1,271,000,000
Unlevered Free Cash Flow 814,789,473
Current Assets 2,423,000,000
Current Cash 194,000,000
Current Liabilities 3,036,000,000
Current Debt 743,000,000
Non-Cash Working Capital (NCWC) -64,000,000
Change in NCWC 252,000,000
EBIT 1,955,000,000
Tax Provision 443,000,000
Depreciation and Amortization 1,297,000,000
Capital Expenditure -1,510,000,000
Unlevered Free Cash Flow 1,329,330,007

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