Using the industry peer median P/E multiple (trailing + forward), Waste Management, Inc. (WM) has a fair value of $208.23 based on 9 comparable companies in the Waste Management industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Waste Management, Inc.WM | 91,935 | 33.9x | 27.7x |
| Northrop Grumman CorporationNOC | 98,495 | 23.9x | 24.8x |
| United Parcel Service, Inc.UPS | 82,750 | 14.8x | 13.8x |
| Johnson Controls International plcJCI | 80,618 | 50.1x | 27.8x |
| 3M CompanyMMM | 76,424 | 24.2x | 16.7x |
| Illinois Tool Works Inc.ITW | 75,379 | 24.9x | 25.0x |
| Emerson Electric Co.EMR | 71,660 | 31.5x | 21.2x |
| Cintas CorporationCTAS | 68,181 | 38.7x | 34.9x |
| Republic Services, Inc.RSG | 67,417 | 31.8x | 30.1x |
| TransDigm Group IncorporatedTDG | 65,151 | 36.0x | 29.7x |
| Industry Median | 31.5x | 25.0x | |
| (*) Profit after tax | 2,708 | 3,315 | |
| Equity Value | 85,423 | 82,914 | |
| (/) Outstanding shares | 404 | 404 | |
| Fair Price | $211 | $205 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.