WM · Intrinsic value
Is Waste Management, Inc. (WM) overvalued or undervalued?
As of Oct 19, 2026, TickerWorth's valuation lenses put Waste Management, Inc. (WM) at $61.51 – $288.64, too broad a range to say where the delayed market price of $226.86 sits in it, so we do not call it over- or undervalued. It is a model estimate, and every input behind it is sourced below.
Model by Miraaj Patel · generated from SEC filings and market data · Updated Oct 19, 2026 · How these pages are made
What is WM worth?
- Fair-value range
- $61.51 – $288.64
- Market price
- $226.86
- Gap to fair value
- —
- Verdict
- Too wide to call
Reverse DCF: Today's price implies revenue growth of 11.8% a year for 5 years; our model assumes 4.9% a year on average over the same horizon.
What is WM's TickerWorth Score?
Scores lower than most companies we compare it with
Compared with Industrials companies in US
Its strongest point: a profitable, high-quality business. Its weakest: balance sheet looks stretched.
- Value · 42 of 100
Cheaper than 42% of Industrials companies in US
- Price vs worth · 25 of 100
- Quality · 69 of 100
More profitable than 69% of Industrials companies in US
- Financial health · 14 of 100
Financially stronger than 14% of Industrials companies in US
- Growth · 29 of 100
Growing faster than 29% of Industrials companies in US
- Momentum · 59 of 100
Outperformed 59% of Industrials companies in US over the past year
Confidence: Medium confidence · Scored
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Why WM gets a range, not one number
At a recent price of $226.86, Waste Management, Inc. (WM) sits inside a range too wide to call either way: our valuation lenses put the business somewhere between $61.51 and $288.64 per share. They disagree too widely for us to state a single fair value. We publish the range rather than a midpoint because a number that precise would claim more than the methods can support. This is an educational model, not a price target or a recommendation.
Read the full reasoning
The valuation discounts Waste Management, Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 7.0%, with a long-run terminal growth rate of 2.5%. About 81% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 11.8% annual revenue growth for WM. Our base case instead compounds to about 4.9% a year over the same forecast, so the market is pricing in materially faster growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, WM's modeled DCF value ranges from about $71.97 to $371.27 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Waste Management, Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of WM's intrinsic value. Figures update as new filings and prices come in.
Every input behind WM's DCF
| Input | Value |
|---|---|
| Base-year revenueWASTE MANAGEMENT INC FY2025 10-K (accession 0001104659-26-012049): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2025 full year. | $25,204,000,000 |
| Base EBIT marginWASTE MANAGEMENT INC FY2025 10-K (accession 0001104659-26-012049): us-gaap:OperatingIncomeLoss 4,308,000,000 / revenue 25,204,000,000 = 17.09%, FY2025. | 17.1% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 6% → 5% → 5% → 4% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.3% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 0.43 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesWASTE MANAGEMENT INC FY2025 10-K (accession 0001104659-26-012049): WeightedAverageNumberOfDilutedSharesOutstanding = 404,200,000 shares, FY2025. | 404M |
| Market priceBackup price feed · as of 2026-10-19 12:52 UTC | $226.86 |
Change WM's assumptions
The discount-rate dial and the editable model
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What does Waste Management, Inc. do?
What does it do?
Waste Management, Inc., through its subsidiaries, provides environmental solutions to residential, commercial, industrial, and municipal customers in the United States, Canada, Western Europe, and internationally. It offers collection services, including picking up and transporting waste and recyclable materials from where it was generated to a transfer station, recovery facility, or disposal site; owns and operates transfer stations; and owns, develops, and operates landfill gas-to-energy facilities that produce renewable electricity and renewable natural gas. It operates in the Waste Management industry (Industrials sector), headquartered in United States. The company employs roughly 60,500 people.
How does it make money?
The business turns $25.7B in annual revenue into profit. Out of every $100 of sales, about $19 is left as operating profit (operating margin of 19.0%), after a 41% gross margin on the products/services it sells. After all costs, taxes and interest, 11.1% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks stretched: carries heavy debt (2.4× equity), may struggle to cover its short-term bills (0.9× current ratio), and is currently profitable.
Who at WM filed insider trades?
| Date | Insider | Relationship | What happened | Value | Filing |
|---|---|---|---|---|---|
| Carroll John A. | VP & Chief Accounting Officer | Open-market sale | $300,163.50 | Form 4 for Carroll John A. (opens sec.gov in a new tab) | |
| Stith Kimberly G. | SVP - Chief HR Officer | Shares withheld (tax) | $78,366.28 | Form 4 for Stith Kimberly G. (opens sec.gov in a new tab) | |
| Carroll John A. | VP & Chief Accounting Officer | Gift | — | Form 4 for Carroll John A. (opens sec.gov in a new tab) | |
| Carroll John A. | VP & Chief Accounting Officer | Gift | — | Form 4 for Carroll John A. (opens sec.gov in a new tab) | |
| Reed David L. | EVP & CFO | Gift | — | Form 4 for Reed David L. (opens sec.gov in a new tab) | |
| Reed David L. | EVP & CFO | Gift | — | Form 4 for Reed David L. (opens sec.gov in a new tab) |
A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans
Common questions
What is WM's intrinsic value?
TickerWorth's valuation lenses put Waste Management, Inc. (WM) between $61.51 and $288.64 per share, versus a market price of $226.86. They disagree too widely for us to state a single fair value, so we publish the range.
Is WM overvalued or undervalued?
At $226.86 the price sits inside a range too wide to call either way. We don't call WM overvalued or undervalued from a range this wide. This is an educational estimate, not advice.
What discount rate is used for WM?
A WACC of 7.0% and a terminal growth rate of 2.5%.
Is Waste Management stock undervalued?
TickerWorth's fair-value range for Waste Management, Inc. (WM) is $61.51 – $288.64 against a market price of $226.86. Too wide to call. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.
Waste Management (WM) DCF valuation and fair value
Our fair-value range for Waste Management, Inc. (WM) is $61.51 – $288.64, built on a 7.0% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Waste Management stock?
Today's price implies revenue growth of 11.8% a year for 5 years; our model assumes 4.9% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $226.86. A model estimate, not investment advice.
Waste Management (WM) insider trading
The most recent insider filing (SEC Form 4) for Waste Management, Inc. (WM): Carroll John A., VP & Chief Accounting Officer, open-market sale on 2026-09-04. The latest filings are listed on this page. A disclosure, not a signal to trade.
Other ways into the coverage
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.