Republic Services, Inc. (RSG) Stock Valuation — PE Analysis
Waste Management · NYSE
Current Price
$217.34
PE Ratio (TTM)
30.6x
Intrinsic Value
$234.27
+7.2% margin of safety
COMPETITIVE MOAT
↑Local Duopoly & High Barriers to Entry
Republic Services benefits from entrenched local market positions, often operating as a duopoly. High capital costs and regulatory hurdles make new entrants extremely difficult.
↑Scale and Route Density Efficiency
The company's vast network of collection routes creates significant operational efficiencies. This scale advantage lowers per-unit costs and deters smaller competitors.
↑Customer Stickiness and Contractual Revenue
Long-term contracts with municipalities and businesses create predictable, recurring revenue. Switching costs for customers are high due to logistical complexities and contract terms.
INVESTMENT RISKS
↓Regulatory and Environmental Scrutiny
The waste management industry faces stringent environmental regulations. Changes in landfill regulations or stricter emissions standards could increase operating costs and capital expenditures.
↓Commodity Price Volatility
Revenue from recycled commodities can fluctuate significantly with market prices. Declines in the value of recyclables can negatively impact profitability.
↓Labor Availability and Costs
Attracting and retaining skilled labor, particularly drivers, is crucial. Shortages or rising wage demands can impact operational capacity and increase expenses.
Base case
RSG base case PE valuation
A base case PE valuation for RSG estimates a fair value of about $234.27 per share, against a current price of $217.34. The model assumes 8.2% annual earnings growth, a 30.44x target PE multiple, and a 10% discount rate.
Intrinsic Value
$234.27
Margin of safety
+7.2%
Expected annual return
+1.5%
Base case assumptions: 8.2% annual earnings growth, 30.44x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-07.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the RSG PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Republic Services, Inc. respond.
Open PE Calculator for RSGCompany Overview
Republic Services, Inc., along with its subsidiaries, delivers comprehensive environmental services across the United States. The company specializes in the collection and processing of recyclable materials, alongside the gathering, transfer, and responsible disposal of non-hazardous solid waste, in addition to other environmental solutions. Its collection activities encompass curbside pickups, facilitating transport to transfer stations, landfills, or recycling facilities; the provision of waste and recycling containers; and compactor rentals. Beyond collection, Republic Services engages in the processing and sale of commodities such as old corrugated containers, newsprint, aluminum, and glass. The company also operates landfill and transfer services, manages the disposal of non-hazardous solid and liquid industrial waste, and provides on-site logistics and transportation. Serving a broad customer base, including residential, small-container, and large-container clients, Republic Services maintains a vast operational footprint. As of December 31, 2021, this included 356 collection operations, 239 transfer stations, 198 active landfills, 71 recycling processing centers, 6 saltwater disposal wells, 7 deep injection wells, and 3 treatment, recovery, and disposal facilities across 41 states. Furthermore, it oversees 77 landfill gas-to-energy and renewable energy projects and manages 124 closed landfills. The company, founded in 1996, is headquartered in Phoenix, Arizona.
Financial Metrics — RSG PE Stock Valuation Data
PE Ratio (TTM)
30.6x
PEG Ratio
7.15
Earnings Yield
3.29%
ROE (TTM)
18.3%
Revenue/Share (TTM)
$54.93
Dividend Yield
1.18%
Debt/Equity
1.19x
Frequently Asked Questions
What is the PE ratio of RSG?
The trailing twelve-month PE ratio of RSG reflects how much investors pay per dollar of Republic Services, Inc.'s earnings. This metric is most useful when compared to Waste Management peers and the company's own historical range.
Is RSG overvalued based on PE ratio?
RSG's PE of 30.6x combined with a PEG ratio of 7.15 provides a growth-adjusted perspective. A PEG above 2.0 means the P/E is high relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Waste Management, a DCF analysis may be more appropriate.
How do I value RSG stock using PE ratio?
To value Republic Services, Inc. using PE: (1) Compare the current PE (30.6x) against the Waste Management median to assess relative pricing, (2) check the PEG ratio (7.15) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of RSG?
RSG's PEG ratio is 7.15, calculated by dividing the PE ratio (30.6x) by the expected earnings growth rate. A PEG above 2.0 means the P/E is high relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for RSG stock valuation?
PE ratio gives a quick relative read — how RSG is priced versus Waste Management peers. DCF provides an absolute value based on projected free cash flows. For RSG, with a strong ROE of 18.3%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See RSG DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Industrials valuationsP/E and DCF value RSG with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-07. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.