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Waste Management, Inc. – Other Nonhazardous Waste Treatment and Disposal
waste management is north america's leading provider of integrated environmental solutions. we partner with our customers and communities to manage and reduce waste from collection to disposal while recovering valuable resources and creating clean, renewable energy. we are on a quest for environmental performance, a mission to maximize resource value, while minimizing – and even eliminating – environmental impact so that both our economy and our environment can thrive. waste management tailors its services to meet the needs of each customer group and to ensure consistent, superior service at the local level. headquartered in houston, the company serves nearly 20 million municipal, commercial, industrial, and residential customers through a network of 367 collection operations, 355 transfer stations, 273 active landfill disposal sites, 16 waste-to-energy plants, 104 recycling plants, and 111 beneficial-use landfill gas projects.
Analysis Results
Intrinsic Value $138.84
Latest Price $157.16
Relative Value 13% overvalued
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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 5.7%. 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 1.94
2024 2.13 1.91
2025 2.21 1.87
2026 2.29 1.83
2027 2.37 1.8
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 65.4 billion. This corresponds to a present value of 46.9 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 9.35 billion. Adding in the terminal value gives a total present value of 56.2 billion.

There are presently 405.0 million outstanding shares, so the intrinsic value per share is 138.84.

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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