Latest Ratios: P/E Ratio 35.4x · EV/EBITDA 15.8x · ROE 29.7%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $95.7B | $88.8B | $81.4B | $72.9B | $65.1B | $70.6B | $50.1B | $48.7B | $38.5B | $38.1B | $31.7B |
| Enterprise Value | $118.4B | $111.5B | $104.9B | $88.6B | $79.7B | $83.9B | $63.4B | $58.7B | $48.4B | $47.6B | $40.9B |
| P/E Ratio → | 35.40 | 32.79 | 29.63 | 31.64 | 29.11 | 38.90 | 33.50 | 29.15 | 20.00 | 19.57 | 26.76 |
| P/S Ratio | 3.80 | 3.52 | 3.69 | 3.57 | 3.31 | 3.94 | 3.29 | 3.15 | 2.58 | 2.63 | 2.33 |
| P/B Ratio | 9.60 | 8.89 | 9.86 | 10.57 | 9.49 | 9.90 | 6.73 | 6.89 | 6.13 | 6.31 | 5.95 |
| P/FCF | 33.98 | 31.54 | 37.70 | 39.95 | 33.40 | 29.00 | 28.31 | 23.70 | 20.50 | 22.82 | 19.53 |
| P/OCF | 15.83 | 14.70 | 15.10 | 15.44 | 14.35 | 16.27 | 14.73 | 12.58 | 10.77 | 11.99 | 10.70 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.42 | 4.75 | 4.34 | 4.05 | 4.68 | 4.17 | 3.80 | 3.25 | 3.29 | 3.01 |
| EV / EBITDA | 15.85 | 14.93 | 16.02 | 14.72 | 14.27 | 16.39 | 14.91 | 13.25 | 11.24 | 11.65 | 10.76 |
| EV / EBIT | 25.70 | 25.71 | 25.86 | 25.18 | 24.19 | 30.90 | 27.35 | 23.31 | 17.68 | 18.73 | 18.72 |
| EV / FCF | — | 39.60 | 48.58 | 48.60 | 40.91 | 34.46 | 35.79 | 28.53 | 25.81 | 28.49 | 25.26 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 29.1% | 29.1% | 29.1% | 28.1% | 27.2% | 26.9% | 27.6% | 28.4% | 28.1% | 28.2% | 28.1% |
| Operating Margin | 18.3% | 18.3% | 18.8% | 18.7% | 17.5% | 16.8% | 16.3% | 17.8% | 18.3% | 18.1% | 17.7% |
| Net Profit Margin | 10.7% | 10.7% | 12.4% | 11.3% | 11.4% | 10.1% | 9.8% | 10.8% | 12.9% | 13.5% | 8.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 29.7% | 29.7% | 36.3% | 33.5% | 32.0% | 24.9% | 20.6% | 25.0% | 31.3% | 34.3% | 22.1% |
| ROA | 6.0% | 6.0% | 7.1% | 7.2% | 7.4% | 6.2% | 5.2% | 6.6% | 8.7% | 9.1% | 5.7% |
| ROIC | 10.7% | 10.7% | 11.4% | 13.0% | 12.3% | 11.0% | 9.9% | 12.4% | 12.9% | 13.1% | 12.5% |
| ROCE | 11.7% | 11.7% | 12.4% | 13.8% | 13.2% | 11.8% | 9.8% | 12.5% | 14.4% | 14.3% | 13.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.29 | 2.29 | 2.90 | 2.35 | 2.18 | 1.88 | 1.85 | 1.91 | 1.60 | 1.57 | 1.75 |
| Debt / EBITDA | 3.07 | 3.07 | 3.65 | 2.69 | 2.68 | 2.62 | 3.25 | 3.05 | 2.33 | 2.32 | 2.45 |
| Net Debt / Equity | — | 2.27 | 2.85 | 2.29 | 2.13 | 1.86 | 1.78 | 1.41 | 1.59 | 1.57 | 1.74 |
| Net Debt / EBITDA | 3.04 | 3.04 | 3.59 | 2.62 | 2.62 | 2.60 | 3.12 | 2.25 | 2.31 | 2.32 | 2.44 |
| Debt / FCF | — | 8.06 | 10.88 | 8.65 | 7.51 | 5.46 | 7.49 | 4.83 | 5.31 | 5.67 | 5.72 |
| Interest Coverage | 4.76 | 4.76 | 6.78 | 7.04 | 8.72 | 7.44 | 5.45 | 6.12 | 7.55 | 7.24 | 5.99 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.89 | 0.89 | 0.76 | 0.90 | 0.81 | 0.75 | 1.00 | 1.97 | 0.85 | 0.80 | 0.85 |
| Quick Ratio | 0.89 | 0.89 | 0.73 | 0.86 | 0.77 | 0.72 | 0.96 | 1.94 | 0.82 | 0.77 | 0.82 |
| Cash Ratio | 0.04 | 0.04 | 0.07 | 0.11 | 0.08 | 0.03 | 0.16 | 1.13 | 0.02 | 0.01 | 0.01 |
| Asset Turnover | — | 0.55 | 0.50 | 0.62 | 0.63 | 0.62 | 0.52 | 0.56 | 0.66 | 0.66 | 0.65 |
| Inventory Turnover | — | — | 75.97 | 84.84 | 87.39 | 97.11 | 88.81 | 104.43 | 105.16 | 108.30 | 108.74 |
| Days Sales Outstanding | — | 58.72 | 61.00 | 51.29 | 50.99 | 51.83 | 62.94 | 54.77 | 55.68 | 59.82 | 57.18 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.4% | 1.5% | 1.5% | 1.6% | 1.7% | 1.4% | 1.8% | 1.8% | 2.1% | 2.0% | 2.3% |
| Payout Ratio | 49.3% | 49.3% | 44.1% | 49.3% | 48.1% | 53.4% | 62.0% | 52.5% | 41.7% | 38.5% | 61.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.8% | 3.0% | 3.4% | 3.2% | 3.4% | 2.6% | 3.0% | 3.4% | 5.0% | 5.1% | 3.7% |
| FCF Yield | 2.9% | 3.2% | 2.7% | 2.5% | 3.0% | 3.4% | 3.5% | 4.2% | 4.9% | 4.4% | 5.1% |
| Buyback Yield | 0.0% | 0.0% | 0.3% | 1.8% | 2.3% | 1.9% | 0.8% | 0.5% | 2.6% | 2.0% | 2.3% |
| Total Shareholder Yield | 1.4% | 1.5% | 1.8% | 3.3% | 4.0% | 3.3% | 2.7% | 2.3% | 4.7% | 3.9% | 4.6% |
| Shares Outstanding | — | $404M | $403M | $407M | $415M | $423M | $425M | $428M | $432M | $442M | $447M |
High leverage and integration
According to current market data, Waste Management trades at a forward P/E of 27.56, which suggests investors are pricing in a significant premium for its landfill-based competitive advantage compared to the broader industrial sector and its primary peers like Republic Services and Waste Connections.
The current P/FCF multiple of 32.30 indicates that the market is willing to pay a high price for the company's predictable, contract-backed cash flows. However, the PEG ratio of 2.45 implies that current growth expectations may be fully priced in, leaving little room for error regarding the successful integration of recent large-scale acquisitions.
Based on reported financial figures, Waste Management's ROIC has trended downward from 3.4% in 2024Q2 to 2.7% by 2025Q4, indicating that the company's aggressive inorganic growth strategy is currently failing to generate returns that exceed the cost of capital required for such massive asset expansion.
The persistent gap between ROIC and historical performance suggests that the capital-intensive nature of recent acquisitions is weighing on overall efficiency. Investors should monitor whether management can improve these returns as the Stericycle integration matures and the RNG portfolio begins to contribute more meaningfully to the bottom line.
As reported in quarterly filings, Waste Management's asset turnover has remained stagnant at approximately 0.14 to 0.16 over the last ten quarters, reflecting the heavy fixed-asset burden inherent in maintaining a nationwide network of landfills and specialized waste collection logistics infrastructure.
The consistency in DSO, which has hovered near 50 days, suggests that the company maintains stable control over its receivables despite the complexity of its diverse customer base. However, the lack of improvement in asset turnover indicates that the company's growth is primarily driven by capital deployment rather than operational velocity.
Based on the provided data, Waste Management's D/EBITDA ratio has surged to 11.77 in 2025Q4, a significant increase from the 9.69 observed in 2024Q3, which suggests that the company's reliance on debt to fund its recent acquisition spree has materially altered its financial risk profile.
The decline in interest coverage ratios, which dropped from 8.60 in 2024Q3 to 5.19 in 2025Q4, warrants close attention as it indicates a narrowing margin of safety for debt service. This leverage profile appears increasingly vulnerable to interest rate volatility and potential covenant pressures if cash flow generation does not accelerate.
The P/E ratio is frequently misapplied to Waste Management because it fails to account for the massive non-cash depreciation charges associated with landfill airspace, which significantly distort net income and obscure the company's true ability to generate recurring cash flow from its long-lived infrastructure assets.
Analysts should prioritize EV/EBITDA or P/FCF metrics to better capture the underlying cash-generating power of the business model. Relying on P/E ignores the reality that WM is essentially an infrastructure play where accounting earnings are often secondary to the long-term monetization of its permitted landfill capacity.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying WM stock.
Waste Management, Inc.'s current P/E ratio is 35.4x. The historical average is 24.1x. This places it at the 92th percentile of its historical range.
Waste Management, Inc.'s current EV/EBITDA is 15.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.3x.
Waste Management, Inc.'s return on equity (ROE) is 29.7%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 16.5%.
Based on historical data, Waste Management, Inc. is trading at a P/E of 35.4x. This is at the 92th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Waste Management, Inc.'s current dividend yield is 1.39% with a payout ratio of 49.3%.
Waste Management, Inc. has 29.1% gross margin and 18.3% operating margin. Operating margin between 10-20% is typical for established companies.
Waste Management, Inc.'s Debt/EBITDA ratio is 3.1x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.