WM - Waste Management: An Updated View On The Valuation In Light Of The Latest Earnings

2024-04-30 22:03:59 ET

Summary

• Waste Management, Inc. has delivered strong quarterly results, with expanding margins, improving efficiency and growing EPS, despite the missed revenue estimates.
• The firm has also shown progress in expanding into the recycling and renewable energy businesses.
• WM's stock still appears to be overvalued. Based on both a dividend discount model and a set of price multiples, it appears to be trading at a 20% premium.
• For these reasons, we reiterate our "hold" rating.

Waste Management, Inc. ( WM ), through its subsidiaries, engages in the provision of environmental solutions to residential, commercial, industrial, and municipal customers in the United States and Canada. We have published already three article on Seeking Alpha about the firm, starting in July, 2022, with a bullish coverage . Later on, in October, 2022, we have downgraded the stock to "hold", which we have maintained throughout 2023 and even until today....

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