Waste Management · NYSE
Current Price
$208.31
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Republic Services, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Republic Services, Inc., together with its subsidiaries, offers environmental services in the United States. The company offers collection and processing of recyclable materials, collection, transfer and disposal of non-hazardous solid waste, and other environmental solutions. Its collection services include curbside collection of material for transport to transfer stations, landfills, or recycling processing centers; supply of recycling and waste containers; and renting of compactors. In addition, the company engages in the processing and sale of old corrugated containers, old newsprint, aluminum, glass, and other materials; and provision of landfill and transfer services. Further, it offers disposal of non-hazardous solid and liquid material and in-plant services, such as transportation and logistics. It serves small-container, large-container, and residential customers. As of December 31, 2021, the company operated through 356 collection operations, 239 transfer stations, 198 active landfills, 71 recycling processing centers, 6 saltwater disposal wells, and 7 deep injection wells, as well as 3 treatment, recovery, and disposal facilities in 41 states. It also operated 77 landfill gas-to-energy and renewable energy projects and had 124 closed landfills. The company was incorporated in 1996 and is based in Phoenix, Arizona.
ROIC (TTM)
8.8%
ROE (TTM)
18.0%
FCF Yield
3.74%
Based on trailing twelve-month data, RSG shows a free cash flow per share of N/A and a ROIC of 8.8%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 3.74% are important context metrics when evaluating RSG's stock valuation relative to peers.
The intrinsic value of RSG depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether RSG is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $208.31. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Republic Services, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Waste Management industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting RSG's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Republic Services, Inc., this means projecting how much free cash flow the Waste Management will produce over the next 5-10 years, then discounting those amounts to today's dollars. RSG's ROIC of 8.8% shows moderate capital returns.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For RSG, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
