Waste Management, Inc. (WM) Financial Ratios
30 years of historical data (1996–2025) · Industrials · Waste Management
EV/EBITDA
↓
14.95
-2% vs avg
5yr avg: 15.26
30Y Low6.8·High16.4
P/FCF
↑
31.59
-8% vs avg
5yr avg: 34.32
30Y Low12.1·High40.0
P/B Ratio
↓
8.92
-8% vs avg
5yr avg: 9.74
30Y Low2.3·High10.6
ROE
↑
29.7%
-5% vs avg
5yr avg: 31.3%
30Y Low-22%·High36%
Debt/EBITDA
↑
3.07
+4% vs avg
5yr avg: 2.94
30Y Low2.3·High3.9
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
WM Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Waste Management, Inc. trades at 32.9x earnings, roughly in line with its 5-year average of 32.4x, sitting at the 88th percentile of its historical range. Compared to the Industrials sector median P/E of 25.9x, the stock trades at a premium of 27%. On a free-cash-flow basis, the stock trades at 31.6x P/FCF, 8% below the 5-year average of 34.3x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $88.9B | $88.8B | $81.4B | $72.9B | $65.1B | $70.6B | $50.1B | $48.7B | $38.5B | $38.1B | $31.7B |
| Enterprise Value | $111.6B | $111.5B | $104.9B | $88.6B | $79.7B | $83.9B | $63.4B | $58.7B | $48.4B | $47.6B | $40.9B |
| P/E Ratio → | 32.91 | 32.79 | 29.63 | 31.64 | 29.11 | 38.90 | 33.50 | 29.15 | 20.00 | 19.57 | 26.76 |
| P/S Ratio | 3.53 | 3.52 | 3.69 | 3.57 | 3.31 | 3.94 | 3.29 | 3.15 | 2.58 | 2.63 | 2.33 |
| P/B Ratio | 8.92 | 8.89 | 9.86 | 10.57 | 9.49 | 9.90 | 6.73 | 6.89 | 6.13 | 6.31 | 5.95 |
| P/FCF | 31.59 | 31.54 | 37.70 | 39.95 | 33.40 | 29.00 | 28.31 | 23.70 | 20.50 | 22.82 | 19.53 |
| P/OCF | 14.72 | 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
WM EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Waste Management, Inc.'s enterprise value stands at 14.9x EBITDA, roughly in line with its 5-year average of 15.3x. The Industrials sector median is 13.9x, placing the stock at a 8% premium on an enterprise-value basis.
| 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 | 14.95 | 14.93 | 16.02 | 14.72 | 14.27 | 16.39 | 14.91 | 13.25 | 11.24 | 11.65 | 10.76 |
| EV / EBIT | 24.23 | 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 |
WM Profitability
Margins and return-on-capital ratios measuring operating efficiency
Waste Management, Inc. earns an operating margin of 18.3%, above the Industrials sector average of 4.9%. ROE of 29.7% indicates solid capital efficiency, compared to the sector median of 8.2%. ROIC of 10.7% represents solid returns on invested capital versus a sector median of 6.3%.
Margins
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% |
Return on Capital
| 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% |
WM Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Waste Management, Inc. carries a Debt/EBITDA ratio of 3.1x, which is moderately leveraged (roughly in line with the sector average of 3.2x). Net debt stands at $22.7B ($22.9B total debt minus $201M cash). Interest coverage of 4.8x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| 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 |
WM Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.89x is below 1.0, meaning current liabilities exceed current assets.
| 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 |
WM Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Waste Management, Inc. returns 1.5% to shareholders annually primarily through dividends. A payout ratio of 49.3% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 3.0% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 1.5% | 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% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.0% | 3.0% | 3.4% | 3.2% | 3.4% | 2.6% | 3.0% | 3.4% | 5.0% | 5.1% | 3.7% |
| FCF Yield | 3.2% | 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 | 1.5% | 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 |
Peer Comparison
Compare WM with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 WMYou | $89B | 32.9 | 14.9 | 31.6 | 29.1% | 18.3% | 29.7% | 10.7% | 3.1 |
 RSG | $62B | 29.2 | 11.9 | 25.7 | 30.3% | 20.0% | 18.3% | 13.5% | 0.1 |
 CWST | $5B | 704.8 | 15.6 | 62.5 | 17.1% | 4.9% | 0.5% | 2.6% | 3.0 |
 WCN | $39B | 36.7 | 16.4 | 31.5 | 39.0% | 18.1% | 13.4% | 7.7% | 3.2 |
 CLH | $15B | 39.6 | 16.0 | 34.8 | 29.5% | 11.2% | 14.7% | 9.8% | 3.1 |
 CECO | $3B | 63.0 | 40.3 | — | 32.7% | 6.7% | 17.4% | 10.0% | 0.3 |
 NVRI | $2B | -9.3 | 12.2 | — | 21.1% | 3.9% | -45.0% | 3.3% | 6.7 |
 LKQ | $7B | 12.2 | 8.1 | 8.7 | 38.0% | 7.8% | 9.6% | 7.2% | 3.4 |
 IIPR | $2B | 14.7 | 10.1 | 9.4 | 88.7% | 46.7% | 6.0% | 4.3% | 2.0 |
 CAT | $431B | 49.2 | 34.5 | 42.0 | 32.3% | 16.6% | 43.5% | 15.9% | 3.2 |
 DE | $160B | 32.0 | 20.3 | 49.6 | 36.5% | 18.8% | 19.3% | 7.7% | 6.0 |
| Industrials Median | — | 25.9 | 13.9 | 20.6 | 32.8% | 4.9% | 8.2% | 6.3% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonWM — Frequently Asked Questions
Quick answers to the most common questions about buying WM stock.
What is Waste Management, Inc.'s P/E ratio?
Waste Management, Inc.'s current P/E ratio is 32.9x. The historical average is 24.1x. This places it at the 88th percentile of its historical range.
What is Waste Management, Inc.'s EV/EBITDA?
Waste Management, Inc.'s current EV/EBITDA is 14.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.3x.
What is Waste Management, Inc.'s ROE?
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%.
Is WM stock overvalued?
Based on historical data, Waste Management, Inc. is trading at a P/E of 32.9x. This is at the 88th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Waste Management, Inc.'s dividend yield?
Waste Management, Inc.'s current dividend yield is 1.50% with a payout ratio of 49.3%.
What are Waste Management, Inc.'s profit margins?
Waste Management, Inc. has 29.1% gross margin and 18.3% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Waste Management, Inc. have?
Waste Management, Inc.'s Debt/EBITDA ratio is 3.1x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.